The Financial Supervisory Commission (FSC) issued the interpretative letter for Article 4 of the Regulations Governing Transactions Other Than Loans between Insurance Enterprises and Interested Parties, Ref. No. Jin-Guan-Bao-Cai-Zi No. 10704502771 dated July 17, 2018 and abolished the letter issued on March 7, 2008, Ref. No. Jin-Guan-Bao-Yi-Zi No. 09600231302. The main points are as follows:

 

When an insurance enterprise engaging in transactions other than loans with interested parties meets one of the following requirements, such insurance enterprise would not be subject to the limitation that the terms of such transactions shall not be more favorable than those offered to other same category counterparties, and such transactions require the concurrence of at least three-quarters of all directors of the insurance enterprise present at a board of directors meeting attended by at least two-thirds of all directors under paragraph 1 of article 4 of the Regulations and the limitation regarding the aggregate amount of transactions under article 5:

 

1.  The government is the responsible person and major shareholder of an insurance enterprise;

 

2.    The enterprise belongs to the interested party in accordance with item 2 of paragraph 1 of article 2 of the Regulations because the government is the responsible person or major shareholder of an insurance enterprise; however if the enterprise is the responsible person or major shareholder of an insurance enterprise, or said enterprise has such relationship with other natural persons as shareholders or natural persons other than the government and is therefore subject to item 2 of paragraph 1 of article 2 of the Regulations, such enterprise should be subject to the limitation of the Regulations.