FSC issued an interpretative order for Article 9 of Regulations Governing Transactions Other Than Loans between Insurance Enterprises and Interested Parties
2017-06-30
On August 25, 2017, the FSC issued the interpretative order. According to the order, when an insurance company engages in transactions other than loans with interested parties, the management may evaluate the reasonableness of the transaction prices at its discretion without submitting documents as evidence that the terms of transaction are not more favorable than those offered to other same category counterparties. Such transactions include (1)spot foreign exchange transactions with subsidiaries of a bank or securities firm belonging to the same financial holding company, while the transaction terms have to reflect market practice and the transaction prices do not deviate from spot price level of the inter-bank foreign exchange market. The designated foreign exchange bank engaged in related transactions shall have price negotiation standards for related transactions with interested parties and such standards shall have been submitted to the board of directors and approved by it; (2) small-amount transactions less than NTD10,000; (3) transactions for public transportation fees that are uniform and not negotiable (such as Taiwan High Speed Rail tickets), telecommunication and internet service fees and public utilities fees.
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Update：
2017-10-02