Taiwan Banks Urge Faster Asset Management Law to Build Asian Financial Hub

As Taiwan pursues its Asian Asset Management Center initiative, the banking industry says rules are fragmented across the banking, securities, investment trust and advisory sectors, making them ill-suited to digital assets and cross-border wealth management. Banks are urging the Financial Supervisory Commission to consider a dedicated asset management law and draw on Singapore’s Variable Capital Company (VCC) framework to give funds more flexibility in their establishment and use of capital. The industry has not yet proposed a specific investment amount.

The latest proposals focus on easing the definition of financial products, applying differentiated supervision based on business risk, and reforming fund and tax structures so digital assets can be formally brought under regulatory oversight. Banks also want the government to accelerate the legislation to narrow the regulatory gap between Taiwan and Asian financial centers such as Singapore. As of the publication of the related reports, however, regulators had not disclosed draft provisions, a submission date or a planned effective date.