| |
|
Article 1 |
These Regulations are formulated in accordance with the provisions of Paragraph 1 of Article 146-5 of the Insurance Act (hereinafter referred to as the "Act").
|
|
Article 2 |
Use of insurance companies' funds for special projects shall be restricted to investments in or extension of loans to the following projects:
1. Emerging and key strategic projects or venture investment projects approved by the government;
2. Industrial zone or regional development projects approved by the government;
3. Purchase of houses by the houseless;
4. Cultural and educational conservation and construction; and
5. Other use in line with government policies.
|
|
Article 3 |
Use of insurance companies' funds for public investments shall be restricted to the following utilities:
1. Transportation facilities of highways, railroads, harbors, parking lots and airports;
2. Facilities of public utilities, such as water, electricity, telecommunication, etc.;
3. Public housing construction projects;
4. Remediation of rivers and sewers, and construction of environmental protection facilities for treatment of rubbish and waste;
5. Construction of public-welfare facilities for public recreation; and
6. Other public investments as promoted by the government or in line with government's construction projects.
|
|
Article 4 |
Public investments by insurance companies means such utilities as are licensed by the competent authorities according to laws and established for the purpose of providing social relief, welfare services, employment, social insurance, medical care and other social welfare.
|
|
Article 5 |
The investment targets of insurance companies, either special projects or public investments, shall be profitable and restricted to such companies limited by shares as are incorporated and registered in accordance with the Company Act, with the exception of such development and construction projects, loans and investments as are in line with the government policies.
|
|
Article 6 |
An insurance company, which intends to invest in a special project or public investments, shall formulate a procedure, which, as well as the amendment thereof, shall be submitted to the board of directors and shareholders' meeting for approval and to the competent authority for reference. The said procedure shall set forth the following information:
1. Assessment and operational procedures (including the investment limit, management level, implementation department authorized by the board of directors);
2. Procedure for determination of transaction terms (including method and bases for determination of the prices);
3. Internal control system (including risk management measures, regular assessment method, performance analysis, etc.);
4. Regular reports by designated senior executives to the board of directors on the performance of projects; and
5. Other information specified by the competent authority.
|
|
Article 7 |
The total amount that an insurance company uses for special projects and public investments shall not exceed 10% of its total funds, and the total amount invested in one and the same entity shall not exceed 5% of its total funds.
The total amount of an insurance company's investment in one and the same entity shall not exceed 10% of the paid-in capital or total outstanding shares of such entity; where the invested entity is a venture investment enterprise, such amount shall not exceed 25% of the paid-in capital or total outstanding shares of such enterprise.
Where, after an insurance company invests in an entity for special projects or public investments, the said entity is qualified to accept investments under Subparagraph 3 or 4 of Paragraph 1 of Article 146-1 of the Act, the investments in such entity shall be governed by the provisions of the said Subparagraph instead, provided that if the said investment exceeds such limits as are prescribed in Subparagraph 3 or 4 of Paragraph 1 or Paragraph 2 of Article 146-1 of the Act, no additional funds shall be invested in the entity unless the additional investment is made to maintain the original equity share in the entity.
|
|
Article 8 |
An insurance company desiring to use its funds for a special project or a public investment shall apply for approval from the competent authority by submitting the following documents:
1. Investment plan and objectives (including objectives, method, market analysis, cost analysis, analysis of long-term and short-term return on investment, composition of shareholders and management team);
2. Details of the funds used for the special project or the public investments, and analysis of return (including analysis of return on investment in each phase with explanatory notes);
3. Financial statements of the invested entity;
4. Resolution of and authorization document issued by the board of directors;
5. Letters of approval issued by relevant authorities; and
6. Other information specified by the competent authority.
Where, after the date of receipt of the application package for use of funds for a special project or a public investment submitted by the insurance company, the competent authority makes no objection thereto or requirements for supplementary or explanatory documents within 15 working days, the application shall be deemed as approved.
Where the aforementioned supplementary documents or explanations are required by the competent authority, if the competent authority makes no objection within 15 working days after the date of receipt of the supplementary or explanatory documents, the application shall be deemed as approved.
|
|
Article 9 |
In any of the following circumstances, an insurance company may use its funds for a special project or a public investment within the limit authorized by the board of directors without going through the application procedure, provided that the documents set forth in Paragraph 1 of the preceding Article shall be submitted to the competent authority for subsequent review:
1. The insurance company increases its monetary investment in an entity for such project as has been approved by the competent authority, without increasing its original share in the total investment in the project;
2. The invested entity is a venture investment enterprise qualified to receive guidance and/or assistance from the Ministry of Econemic Affairs according to the Regulations Governing the Scope of and Guidance for Venture Capital Enterprises, and the total amount that the insurance company invests in one and the same entity is less than NT$100 million and less than 5% of the paid-in capital of the insurance company; and
3. The invested entity is not such an enterprises as is specified in the preceding Subparagraph and the total amount that the insurance enterprise invests in one and the same entity is less than NT$50 million and less than 2% of the paid-in capital of the insurance company.
For an insurance enterprises engaging in the investment set forth in preceding Paragraph, the risk-based capital ratio thereof should comply with the provisions of Paragraph 1 of Article 1463-4 of the Act.
The competent authority may, on a regular basis, audit the investment made by an insurance company in such special projects or public investments as are set for in Paragraph 1, and may, in light of the social and economic circumstances and the actual performance of the projects, impose restrictions on or require review of such investment.
|
|
Article 10 |
An insurance company shall extend loans for public projects pursuant to Paragraphs 1 and 3 of Article 146-3 of the Act.
|
|
Article 11 |
This Regulation shall come into force on the date of promulgation.
|
| |
|
