The Financial Supervisory Commission (FSC) yesterday said it would adopt a more flexible management mechanism when overseeing fund houses to encourage and reward responsible behavior and discipline.
Huang Tien-mu (黃天牧), director-general of the FSC’s Bureau of Securities and Futures, made the statements after a closed-door meeting between FSC Chairman William Tseng (曾銘宗) and 21 fund houses.
“The commission will remove chairs, not just top executives, of fund houses found of irregularities, while mulling more deregulation to help boost their business,” Huang citied Tseng as saying.
Huang did not elaborate on the differences, but added Tseng frowned on stock manipulations by ING Securities Investment and Trust Co (ING SITC, 安泰投信), the local asset management unit of Dutch financial service provider ING Group, as well as First Securities Investment Trust Co (第一金投信, FSITC), a subsidiary of the state-run First Financial Holding Co (第一金控).
“Well-behaved fund managers will enjoy greater operation flexibility, but unruly ones will be subjected to tighter oversight under the mechanism,” Huang said.
Disciplined fund houses, for instance, may launch several products without the commission’s prior approval, among other benefits, Huang said.
On the other hand, the commission will continue to make the local market more business-friendly for fund managers and investors, Huang said.
To that end, the commission is to exempt offshore funds from the registration and custodian requirements needed to buy foreign currency-denominated bonds and funds in Taiwan.
The regulator will also loosen credit ratings requirements for bond holdings by fund houses.
As of Aug. 31, there were more than 140 asset management companies in Taiwan.
United Microelectronics Corp (UMC, 聯電) expects its addressable market to grow by a low single-digit percentage this year, lower than the overall foundry industry’s 15 percent expansion and the global semiconductor industry’s 10 percent growth, the contract chipmaker said yesterday after reporting the worst profit in four-and-a-half years in the fourth quarter of last year. Growth would be fueled by demand for artificial intelligence (AI) servers, a moderate recovery in consumer electronics and an increase in semiconductor content, UMC said. “UMC’s goal is to outgrow our addressable market while maintaining our structural profitability,” UMC copresident Jason Wang (王石) told an online earnings
The US Federal Reserve is expected to announce a pause in rate cuts on Wednesday, as policymakers look to continue tackling inflation under close and vocal scrutiny from US President Donald Trump. The Fed cut its key lending rate by a full percentage point in the final four months of last year and indicated it would move more cautiously going forward amid an uptick in inflation away from its long-term target of 2 percent. “I think they will do nothing, and I think they should do nothing,” Federal Reserve Bank of St Louis former president Jim Bullard said. “I think the
The TAIEX ended the Year of the Dragon yesterday up about 30 percent, led by contract chipmaker Taiwan Semiconductor Manufacturing Co (TSMC, 台積電). The benchmark index closed up 225.40 points, or 0.97 percent, at 23,525.41 on the last trading session of the Year of the Dragon before the Lunar New Year holiday ushers in the Year of the Snake. During the Year of the Dragon, the TAIEX rose 5,429.34 points, the highest ever, while the 30 percent increase in the year was the second-highest behind only a 30.84 percent gain in the Year of the Rat from Jan. 25, 2020, to Feb.
Cryptocurrencies gave a lukewarm reception to US President Donald Trump’s first policy moves on digital assets, notching small gains after he commissioned a report on regulation and a crypto reserve. Bitcoin has been broadly steady since Trump took office on Monday and was trading at about US$105,000 yesterday as some of the euphoria around a hoped-for revolution in cryptocurrency regulation ebbed. Smaller cryptocurrency ether has likewise had a fairly steady week, although was up 5 percent in the Asia day to US$3,420. Bitcoin had been one of the most spectacular “Trump trades” in financial markets, gaining 50 percent to break above US$100,000 and
RSS