Taiwan FSC Eases Related-Party Curbs on OTC Transactions by Discretionary Asset Managers

Discretionary asset managers manage assets on behalf of clients. Investment trust firms, investment advisory firms and institutions operating such businesses concurrently were previously barred from conducting over-the-counter derivatives transactions with related parties, including banks or securities firms under the same financial holding company. The Financial Supervisory Commission eased the restrictions in support of its Asian Asset Management Center policy, aiming to integrate group resources for pricing, hedging and product offerings while improving asset-management efficiency for professional institutional investors.

The Financial Supervisory Commission issued Order No. 1150380846 on May 13, 2026, effective the same day. It allows professional investment institutions and high-net-worth corporate investors that apply in writing to conduct negotiated OTC transactions with related parties of discretionary asset managers. The combined total market value and notional value of outstanding contracts may still not exceed 40% of an account’s net assets, while exposure related to any single company is capped at 20%.