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1. The Commission has given approval that venture capital management companies, factoring companies, and micro-credit companies in the Mainland Area be categorized as “other financial related enterprises besides financial institutions ratified by the competent authorities” subject to Paragraph 1 of Article 2 in “Regulatory Principles for Investments in the Mainland Area Enterprises by Banks, Financial Holding Companies, and Their Affiliated Enterprises”.
2. The requirements for applying to invest in any venture capital management company, factoring company and micro-credit company in the Mainland Area are as follows:
(1) Companies that wish to invest in venture capital management companies in the Mainland Area are limited to the subsidiaries of financial holding companies in the Taiwan that directly or indirectly hold 100% of issued total outstanding voting shares or capital.
(2) Companies that wish to invest in factoring companies in the Mainland Area are limited to the subsidiaries of banks and financial holding companies in Taiwan that directly or indirectly hold 100% of issued total outstanding voting shares or capital and which have invested at least US$30 million total paid-in capital in the financial leasing company in the Mainland Area.
(3) Investing micro-credit companies in the Mainland Area are limited to the following companies:
1. A financial holding company or its subsidiary bank directly or indirectly holds 100% of issued total outstanding voting shares or capital that has meet the following requirements.
(1) A financial holding company that has met each regulation listed in Paragraph 1, Article 48 of “Regulations Governing the Banking Activity and the Establishment and the Investment by Financial Institution between the Taiwan Area and the Mainland Area”.
(2) A subsidiary bank under a financial holding company in the Taiwan Area that has met the criteria listed in Subparagraphs 1-5, Paragraph 1, Article 35 in “Regulations Governing the Banking Activity and the Establishment and the Investment by Financial Institution between the Taiwan Area and the Mainland Area”.
2. A subsidiary bank does not belong to the financial holding company that has met the requirements in Subparagraphs 1-5, Paragraph 1, Article 35 in “Regulations Governing the Banking Activity and the Establishment and the Investment by Financial Institution between the Taiwan Area and the Mainland Area”, is a subsidiary of which the company directly or indirectly holds 100% of the issued total outstanding voting shares or capital.
3. The percentage of shareholding for micro-credit companies and factoring companies in the Mainland Area are limited to those holding 100% of the issued voting shares.
4. The venture capital management companies in the Mainland Area are not permitted to directly or indirectly invest in any venture capital companies or general enterprises or to participate in any investment in venture capital management companies.
5. The loans in the Mainland Area disbursed by micro-credit companies in Mainland Area should be counted in the total loan balance in Paragraph 2 Article 12-1 in “Regulations Governing the Banking Activity and the Establishment and the Investment by Financial Institutions between the Taiwan Area and the Mainland Area”.
6. Banks or financial holding companies should supervise micro-credit companies and stipulate that they devise risk management mechanisms subject to the policies of banks or financial holding companies.
7. Banks or financial holding companies should supervise micro-credit companies and stipulate that they set withdrawal mechanisms and implementation methodologies, such as transferring awarded credit assets to the branches or subsidiaries of a bank.
8. After being approved by the Commission, banks or financial holding companies may apply to the Mainland Area for investment in venture capital management companies, factoring companies or micro-credit companies, and they are required to report to the Commission on the response (approval or denial) of their application to the authorities concerned in the Mainland Area. They are required to submit related approval documents offered by the authorities concerned in the Mainland Area, estimated establishment date and address, the name of the responsible person and related information to the Commission for its reference. They should do the same for any changes or dissolution of the company.
9. FSC Order Jin-Guan-Yin-Kong-Tzi No. 10160003700 issued on Oct 26th, 2012 is now annulled. This Order shall become effective immediately. |