The Provisions regulate the engagement in public securities fund management by securities companies, insurance companies, private equity firms and venture capital firms.
Securities investment fund management companies, futures companies, commercial banks, insurance companies and trust companies allowed in engage in asset securitisation.
If a Taiwanese investor invests in and establishes an enterprise on the mainland using a company, enterprise or other economic organisation in a third place that it directly or indirectly owns or controls, it may apply to have such third place investor recognised as being the equivalent of a Taiwanese investor.
The Provisions expand the scope of RQFIIs to also include Hong Kong subsidiaries of commercial banks and insurance companies, as well as financial institutions incorporated and with a principal place of business in Hong Kong. The requirement that 80% of the proceeds be invested in fixed-return securities is also lifted.
Private equity funds established in the form of a company or partnership to engage in securities investments managed by a fund manager or general partnership are now governed by the Securities Investment Fund Law.