Reuters
Date: Apr 5, 2015
By: Spencer Anderson

HONG KONG, April 6 (IFR) – Taiwan’s Financial Supervisory Commission is toughening its stance on foreign banks marketing offshore securities in the country, after some tried to operate there without onshore licences.

According to bankers from foreign firms active in the country, the FSC has taken a noticeably stricter stance in recent months and suggested that a number of foreign banks could be fined soon.

The clampdown follows a surge in Taiwan-targeted debt offerings from overseas entities, with firms from Goldman Sachs to Air Liquide issuing Formosa bonds in recent months.

Under Taiwanese regulations, bankers without onshore licences are not allowed to market overseas financial products in the country. Some firms had enlisted domestic bookrunners in order to appear to comply, but, in reality, foreign banks had been managing transactions. For a while, the FSC is said to have turned a blind eye to the practice, but it appears this is changing.     [FULL  STORY]