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Taiwan's FSC may ease investment rules governing life insurers.

Taipei, Dec. 20, 2012 (CENS)--Taiwan's Financial Supervisory Commission (FSC) agreed to study the possibility of easing investment restrictions governing life insurers after a recent meeting with the chief executives of the firms.

The executives suggest that maximum overseas investments be raised to 15% or 20% from the current 10% of life insurance fund. For instance, the total life insurance fund is now about NT$12 trillion (US$400 billion) but only NT$540 billion (US$18 billion) may be invested overseas, which can be over NT$1 trillion (US$33.33 billion) with the percentage raised to 20%.

They also suggest the FSC to raise the maximum investment in overseas real property by life insurers to 3% of available capital from the existing 10% of owners' equity, which would add an estimated NT$300 billion (US$10 billion) to such investments.

Besides, they hope the FSC would ease the strict rating on overseas corporate bonds in which they intend to invest and allow them to set up special purpose vehicles (SPV) or special purpose companies (SPC) for overseas real estate investment.

Paul Hsu, chairman of the Life Insurance Association in Taiwan, disclosed that life insurance funds might be increasingly funneled in the stock market here, to which the current funds of NT$50 billion (US$1.67 billion) will very likely go by the end of the year.
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Title Annotation:Financial Supervisory Commission
Author:Li, Judy
Publication:The Taiwan Economic News
Article Type:Brief article
Geographic Code:9TAIW
Date:Dec 20, 2012
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