The Financial Supervisory Commission (FSC) has amended the Regulations Governing International Securities Business Branches to expand the international operations of Taiwan’s securities industry and enhance cross-border fund management efficiency. The reform also aligns with updates to the Regulations Governing Responsible Persons and Associated Persons of Securities Firms. 

Under the newly added second part of Subparagraph 1, Paragraph 1, Article 9-1, Offshore Securities Units (OSUs)handling account custody for offshore clients—such as individuals, corporations, government agencies, or financial institutions outside Taiwan—may now deposit client funds not only in foreign currency accounts with Offshore Banking Units (OBUs) but also in foreign custodial institutions. This provides greater flexibility and convenience for cross-border transactions. 

To ensure the security of client funds, Paragraph 4 of Article 9-1 was added to specify the qualification requirements and credit rating standards for foreign custodial institutions. Eligible custodians include those whose affiliates or themselves have established  a securities or banking branch or subsidiary in Taiwan, or, if not established locally, those meeting the FSC’s credit rating requirements for financial institutions. 

Furthermore, in alignment with the amendment to Article 10, Paragraph 1, Subparagraph 4 of the Regulations Governing Responsible Persons and Associated Persons of Securities Firms, the proviso of Article 13 was also adjusted to ensure regulatory consistency and legal clarity. Overall, the amendment seeks to balance regulatory flexibility and client fund protection, reinforcing Taiwan’s ambition to become a key asset management hub in Asia.