MAS names sustainability head; Malaysia’s EPF appoints COO and CFO; GIC PE head for SEA leaves; State Super hires new exec; Hesta appoints chief growth officer, chief Debby Blakey appointed to corporate governance board; ex-BlackRock exec joins IQ-EQ in Singapore; HSBC AM builds direct real estate team; ex-Vanguard head of distribution joins LGIM; Sanne names Singapore head; and more
Taiwan's rules were first issued in May 2006, laying out required credit ratings, circumstances under which derivatives could be employed, limits on asset exposure to such instruments, qualifications for investment professionals handling these, and risk-management procedures.
Initially derivatives were only allowed for hedging purposes but the rules were relaxed in May 2007. Requirements on risk-based capital were eased, as were maximum allocations to overseas-issued instruments or structured products. This allowed insurance companies to use derivative products to enhance investment returns.
Earlier this year, the FSC also raised the percentage limit allowed on overseas investments and allocation to alternative investments.
However, insurers have complained that the FSCÆs relaxation measures had opened up new investment possibilities on paper, while tying up their hands through tighter risk-based capital requirements.
With the removal of these rules for once and for all, insurers will be given a free rein on how they wish to implement portfolio investments without the fuss of filing detailed proposals or seeking the FSCÆs approval.
FSC Commissioner Lee Shyan-Yan notes the regulatory agency is keen to revamp how it regulates financial institutions. As has happened recently in Japan, and will be formalised in Korean law early next year, Taiwan is moving towards a UK-style principles-based rulebook. This is intended to enhance the Taiwanese insurance sector's regional competitiveness, as well as to make Taipei a genuine financial-services hub within Greater China.
New rules and further relaxation on private equity and hedge fund investments are expected to be introduced later this year.
The AU$85 billion ($61.6 billion) Australian super fund has some exposure to indebted property developer Evergrande. Meanwhile, China’s construction finance is part of its core strategy in real estate.
Investors are seeing the risks, but also the opportunities of the logistics sector. Warehousing their fears for the moment, they can see it's a good conduit to high-growth assets.
Insto roundup: GPIF staff say J-Reits more attractive than traditional assets; Hong Kong's strict Spac criteria
EISS Super hit by another scandal; China's CSRC launches consultation on disclosure requirements for new BSE securities; Hong Kong issues consultation paper on Spacs; New World Development partners with China Taiping to focus on Greater Bay Area projects; GPIF employees say Japanese Reits have grown more attractive; Taiwan's BLF invites bid for $1.7 billion mandate; and more
SGX’s new framework for Spacs will likely provide investors with a much-needed channel for direct deals, but the verdict is still out on whether it will bring liquidity to the bourse.