The Financial Supervisory Commission (FSC) is considering relaxing regulations on securities investment consulting services with robo-advisors, the commission said on Tuesday.
Given that investors are embracing automated investing, the move would help companies provide innovative service, it added.
Relaxing regulations would help companies that have developed algorithms to execute rebalancing operations provide retail investors with better management service, the commission said.
Rebalancing operations are re-adjustments of asset allocations in a recommended investment portfolio to meet customers’ level of risk tolerance, the commission said.
For example, an investor might allocate 60 percent of their assets to stocks and 40 percent to bonds, it said.
However, the asset allocation might change to 70 percent and 30 percent respectively, if stocks are rising, the commission said.
Under the commission’s current regulations, robo-advisors must automatically dispose of some investment targets to restore the risk exposure that investors want, it said.
However, some securities and investing companies hope that the regulations can be relaxed so that robe-advisors could decide the ideal allocation for the investors, a strategy expected to generate a higher return as robo-advisors can utilize big data analysis and are not driven by emotions, the commission said.
As of the end of last month, robo-advisors this year managed funds totaling NT$2.29 billion (US$80.32 million), up 123 percent from NT$1.03 billion at the end of last year, with 81,512 investors using the service, up 2.5 times from the end of last year, it said.
Thirteen financial firms as of last month offered automated portfolio advisory, up from nine at the end of last year and six at the end of 2018, the commission said.
UNCERTAINTY: Innolux activated a stringent supply chain management mechanism, as it did during the COVID-19 pandemic, to ensure optimal inventory levels for customers Flat-panel display makers AUO Corp (友達) and Innolux Corp (群創) yesterday said that about 12 to 20 percent of their display business is at risk of potential US tariffs and that they would relocate production or shipment destinations to mitigate the levies’ effects. US tariffs would have a direct impact of US$200 million on AUO’s revenue, company chairman Paul Peng (彭雙浪) told reporters on the sidelines of the Touch Taiwan trade show in Taipei yesterday. That would make up about 12 percent of the company’s overall revenue. To cope with the tariff uncertainty, AUO plans to allocate its production to manufacturing facilities in
Taiwan will prioritize the development of silicon photonics by taking advantage of its strength in the semiconductor industry to build another shield to protect the local economy, National Development Council (NDC) Minister Paul Liu (劉鏡清) said yesterday. Speaking at a meeting of the legislature’s Economics Committee, Liu said Taiwan already has the artificial intelligence (AI) industry as a shield, after the semiconductor industry, to safeguard the country, and is looking at new unique fields to build more economic shields. While Taiwan will further strengthen its existing shields, over the longer term, the country is determined to focus on such potential segments as
COLLABORATION: Given Taiwan’s key position in global supply chains, the US firm is discussing strategies with local partners and clients to deal with global uncertainties Advanced Micro Devices Inc (AMD) yesterday said it is meeting with local ecosystem partners, including Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), to discuss strategies, including long-term manufacturing, to navigate uncertainties such as US tariffs, as Taiwan occupies an important position in global supply chains. AMD chief executive officer Lisa Su (蘇姿丰) told reporters that Taiwan is an important part of the chip designer’s ecosystem and she is discussing with partners and customers in Taiwan to forge strong collaborations on different areas during this critical period. AMD has just become the first artificial-intelligence (AI) server chip customer of TSMC to utilize its advanced
While China’s leaders use their economic and political might to fight US President Donald Trump’s trade war “to the end,” its army of social media soldiers are embarking on a more humorous campaign online. Trump’s tariff blitz has seen Washington and Beijing impose eye-watering duties on imports from the other, fanning a standoff between the economic superpowers that has sparked global recession fears and sent markets into a tailspin. Trump says his policy is a response to years of being “ripped off” by other countries and aims to bring manufacturing to the US, forcing companies to employ US workers. However, China’s online warriors
RSS