Taiwan Plans to Scrap Private Fund Investor Cap in 2026

Taiwan launched the Kaohsiung Asset Management Zone in July 2025 as a test bed for its ambition to become an Asian wealth-management hub. Existing rules cap at 99 the number of high-net-worth clients who may buy a single offshore fund that does not qualify as a securities investment trust fund, or be introduced to a private equity fund. The ceiling has constrained distribution and made Taiwan less attractive to large international private-market managers.

The Financial Supervisory Commission said on July 24, 2026, that banks, securities firms and securities investment trust and consulting companies in the zone will be allowed to exceed the 99-investor cap. Industry associations must first establish self-regulatory safeguards, while firms must enforce risk controls and suitability reviews. By end-June, 58 financial institutions had entered the zone; banks served 6,214 high-net-worth clients and managed NT$728.1 billion in assets.

Private funds and funds not classified as securities investment trust funds are currently limited to no more than 99 investors per fund, a restriction the industry says hampers fundraising growth. Responding to a request from the Securities Investment Trust and Consulting Association, Taiwan's Financial Supervisory Commission is considering raising the cap. The change would be a key measure supporting Taiwan's push to become an Asia-Pacific asset-management hub and strengthen the sector's capacity to absorb capital.

The FSC plans to formally ease the 99-investor limit in 2026 and is aiming to launch a pilot program in Kaohsiung's asset-management zone in the first half of this year. It has not announced a new investor cap or disclosed estimates for additional fundraising. If the pilot and subsequent regulatory changes proceed smoothly, private funds and funds not classified as securities investment trust funds could expand both their investor bases and assets under management.