Taiwan to Allow Life Insurers, Securities Firms to Operate Forex

Taipei, Sept. 18, 2012 (CENS)--Premier Sean Chen recently declared that the government will revise financial rules to allow large life insurers, stocks & securities firms, and investment & trust companies to operate foreign exchange businesses.

To revitalize the financial market, Chen has instructed the Ministry of Finance (MOF), Financial Supervisory Commission (FSC) and the Central Bank to work out measures to also allow, besides banks, financial institutions to operate forex businesses, also assess the feasibility of lowering the futures trading tax and default provision rates.

Central Bank Governor F. N. Perng has reportedly agreed to revise the forex control act to allow other financial institutions to handle such business; while MOF and FSC are studying the possibility to lower the futures trading tax rate from 0.004% to 0.001% and to reduce the securities trading tax rate from 0.3% to 0.1% related to hedging.

Besides, stocks & securities firms may be allowed to set up for example offshore banking unit (OBU) as is done by domestic banks. Moreover, the recently inked cross-strait currency settlement agreement may allow domestic financial institutions to offer renminbi (RMB)-based financial services.