Best Funds & Asset Management Lawyers in Taiwan

About Funds & Asset Management Law in Taiwan, Taiwan

Funds and asset management is a vital segment of the financial sector in Taiwan. The nation’s legal framework ensures that the formation, operation, and regulation of funds and asset managers meet global standards while also supporting the local market. In Taiwan, the asset management industry supervises a range of products such as mutual funds, private funds, discretionary investment accounts, and related structures. The Financial Supervisory Commission (FSC) is the principal regulator overseeing the operation and conduct of domestic and international asset managers, trustees, and custody institutions. Regulatory compliance is essential, and strict due diligence applies to participants to help maintain financial stability and investor protection.

Why You May Need a Lawyer

You may require legal assistance in the field of funds and asset management in several situations, including:

• Forming a new fund or establishing an asset management business in Taiwan
• Registering or marketing foreign funds to retail or institutional investors in Taiwan
• Ensuring ongoing regulatory compliance with FSC requirements and anti-money laundering laws
• Entering into service agreements with custodians, distributors, or investment managers
• Resolving disputes among investors, managers, or other parties involved in a fund
• Drafting and reviewing prospectuses, offering documents, and partnership agreements
• Undertaking a merger, acquisition, or restructuring involving fund operators or asset managers
• Responding to investigations by regulatory authorities
• Tax structuring and cross-border investment considerations
• Handling dissolution or liquidation of funds and investment vehicles

Local Laws Overview

Taiwan’s funds and asset management industry is regulated primarily by the Securities Investment Trust and Consulting Act (SITCA) and related ordinances. Key requirements and features include:

• The establishment and operation of securities investment trust enterprises (SITE) and securities investment consulting enterprises (SICE) require licensing by the FSC.
• Investment funds must comply with disclosure obligations, risk control, and periodic reporting standards.
• Foreign funds are subject to registration by the FSC to be marketed in Taiwan and often must appoint a local master agent.
• Strict anti-money laundering and know your customer (KYC) policies apply to all asset managers and related service providers.
• Specific limits are imposed on investment concentration, leverage, and connected transactions to protect investors.
• Retail investors and institutional investors may be subject to different regulations.
• Dispute resolution can involve both the courts and the Securities and Futures Investors Protection Center (SFIPC).
• Taxation for funds and managers depends on fund structure, investor profile, and whether the fund is onshore or offshore.

Frequently Asked Questions

What is the main regulatory body for funds and asset management in Taiwan?

The Financial Supervisory Commission (FSC) regulates the funds and asset management industry in Taiwan, overseeing compliance, licensing, and market conduct.

Can foreigners invest in Taiwan funds?

Yes, foreigners can invest in Taiwan funds, but certain restrictions or disclosure requirements may apply depending on the type of fund and investor profile.

What licenses are required to operate an asset management company in Taiwan?

To operate an asset management company such as a SITC or SICE, you must obtain licenses from the FSC. Directors and senior management must meet qualification criteria.

Are offshore funds allowed to be marketed in Taiwan?

Offshore funds can be marketed in Taiwan, but only after registration with the FSC and through a local master agent or distribution network.

What investor protections are available for fund investors in Taiwan?

Investors benefit from disclosure requirements, periodic reporting, restrictions on related-party transactions, and the Securities and Futures Investors Protection Center.

What are common legal risks for fund managers in Taiwan?

Key risks include non-compliance with licensing or KYC requirements, inadequate disclosure, mismanagement of assets, operation beyond permitted scope, or breach of fiduciary duties.

How are disputes between investors and fund managers resolved?

Disputes can be settled through the courts, arbitration, or via mediation by the Securities and Futures Investors Protection Center (SFIPC).

What tax issues should be considered for funds in Taiwan?

Generally, taxation depends on fund structure, investor location, source of income, and whether special tax incentive schemes apply. Onshore and offshore funds have different treatments.

Is anti-money laundering compliance mandatory for asset managers?

Yes, asset managers must comply with Taiwan’s AML laws, undertake due diligence on clients, monitor transactions, and report suspicious activities.

Can funds invest in all types of assets in Taiwan?

There are restrictions on certain asset classes, investment concentration, and exposures as outlined by local law and regulatory standards, particularly for retail funds.

Additional Resources

If you need more information or wish to explore self-help or official guidance, consider contacting or consulting the following:

• Financial Supervisory Commission (FSC): The main regulatory authority for securities, fund management, banking, and insurance in Taiwan.
• Securities Investment Trust & Consulting Association (SITCA): Industry body representing SITE and SICE members, offering guidance and resources.
• Securities and Futures Investors Protection Center (SFIPC): Assists investors in protecting their rights and resolving disputes.
• Ministry of Finance: For details on tax policy and compliance related to investment funds.
• Taiwan Bar Association: Directory of qualified lawyers experienced in funds and asset management law.
• Legal or compliance departments of banks, trustees, or custodians: For practical and operational advice on regulatory compliance issues.

Next Steps

If you require assistance with any funds and asset management issues in Taiwan, you should:

• Gather all relevant documents such as fund prospectuses, agreements, regulatory notices, and correspondence.
• Define your goals and the specific nature of your legal concern, whether it involves compliance, dispute resolution, formation, or operations.
• Consult a qualified local lawyer specializing in funds and asset management law to assess your options and identify any risks or obligations.
• Engage early with legal counsel if you anticipate regulatory queries, investor complaints, or structural changes to your fund operations.
• Review available government or industry support resources for further guidance.

Proactive legal consultation can be a crucial step in ensuring compliance, protecting investments, and minimizing risk in Taiwan’s complex and highly regulated funds and asset management sector.