Financial Supervisory Commission allows professional investors to invest in virtual asset ETFs

The Financial Supervisory Commission (hereinafter referred to as the Financial Supervisory Commission) officially announced on September 30 that in order to provide investors with more diverse product choices and enhance the vitality of the re-entrustment business of China's securities firms, it decided to open up "professional investors" to re-entrustment. Invest in foreign virtual asset ETFs. This move not only provides investors with new options, but also injects new momentum into Taiwan's financial market.

The Financial Supervisory Commission said: “Considering the complex nature of virtual assets and the violent price fluctuations, the investment risks are relatively high, so only ‘professional investors’ will be allowed to participate in the initial stage.”

Five supporting measures to ensure investment safety

In order to ensure the rights and interests of investors, the Financial Supervisory Commission has simultaneously launched five supporting measures:

1. Personal distinction between investors

Considering the complex nature of virtual assets and drastic price fluctuations, the investment risk of virtual asset ETFs is relatively high. The principals entrusted by securities firms to buy and sell foreign virtual asset ETFs are limited to professional investors. Professional investors include professional institutional investors, high-net-worth investment legal persons, high-asset clients, legal persons or funds that are professional investors, and natural persons that are professional investors.

2. Strengthen understanding of customer procedures

Securities firms must establish a complete virtual asset ETF product suitability assessment system and obtain approval from the board of directors. Before the client makes the first purchase, the securities firm must evaluate whether the client has investment expertise and certain investment experience in virtual assets and related commodities.

3. Sign a risk notice

Except for professional institutional investors, other clients must sign a risk warning letter before the initial purchase before securities firms can accept their entrustment. This ensures that investors have fully understood the relevant investment risks.

4. Provide product information

Securities firms should provide relevant product information about virtual asset ETFs before the client makes the initial purchase to help investors gain an in-depth understanding of the investment target.

5. Regular education and training

In order to improve the professionalism of business personnel, securities firms need to provide regular education and training on virtual assets and related products to ensure that they can provide customers with professional investment advice.

The Financial Supervisory Commission also stated that it will continue to pay attention to the implementation of the re-entrustment business of securities firms, and improve relevant regulations in a timely manner to ensure the rights and interests of investors and enhance the competitiveness of securities firms.

Looking to the future, investors need to carefully evaluate

The Financial Supervisory Commission's opening of investment in virtual asset ETFs to professional investors is regarded as a major breakthrough for Taiwan's financial market. However, given that virtual asset prices fluctuate violently and investment risks are high, experts remind investors that they still need to carefully assess their risk tolerance.

The Financial Supervisory Commission emphasized that this opening is only a preliminary measure. In the future, it will consider whether to further open to general investors based on market response and development. At the same time, investors are called on to maintain rational investment, fully understand the relevant risks, and make investment decisions prudently.

[Disclaimer] There are risks in the market, so investment needs to be cautious. This article does not constitute investment advice, and users should consider whether any opinions, views or conclusions contained in this article are appropriate for their particular circumstances. Invest accordingly and do so at your own risk.