An insurer may entrust an enterprise approved by competent authorities or one concurrently engaging in discretionary investment services to utilize
and manage its investment-linked products in separate accounts. In order to increase risk management capabilities and strengthen internal control
and internal audit mechanisms for insurance company, the FSC amended the Regulations Governing Investment of Investment-linked Insurance
on December 12, 2016 and Directions for Disclosure Requirements of Investment-linked Insurance, Directions for the Review of Life Insurance
Products, the Directions for Product Marketing of Investment-linked Insurance  and  the  Directions  for  the  Separate  Account  Custodian
Institutions and Investment Instruments of the Investment-linked Insurance on December 14, 2016. The amendments allow an enterprise entrusted
with discretionary investment in investment-linked products to conduct currency related financial derivatives transactions for currency hedging
purpose, while supportive measures are also introduced. Moreover, FSC also introduced new regulations governing the requirement for
insurance companies to establish a mechanism for managing institutions entrusted with making discretionary investments and to make sure such
an institution has the mechanism of processing discretionary investment transactions.