Announcement of the Stipulation of the Regulations Governing Real Estate Investments by Insurance Enterprises

12/30/2021

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Issued and promulgated by the President on May 26, 2021, the amendment to Article 146-2 of the Insurance Act stipulates that the competent authority shall prescribe regulations governing internal handling procedures, restrictions and qualifications for real estate investment by insurance enterprises, determination criteria for immediate use and income generation, handling principles, and other compliance matters. According to the above regulations and to strengthen the regulations governing real estate investment by insurance enterprises, the draft Regulations Governing Real Estate Investments by Insurance Enterprises (the "Draft Regulation" or "Regulation") were prepared after considering the Recognition Standards and Processing Principles for Real Estate Investment by Insurance Enterprises Regarding Immediate Use and Income Generation issued per the letter Ref. No. Jin-Guan-Bao-Tsai-Zi No. 10804945921 dated December 12, 2020, and related circumstances. The Draft Regulations currently include 13 articles, and the key points of each article are as follows:

1.     The basis for formulating this Regulation. (Article 1 of Draft Regulation)

2.     Definition of the relevant terms in this Regulation. (Article 2 of Draft Regulation)

3.     Stipulate requirements for establishing the processing procedures for real estate investment and management, and the board of directors shall approve the procedures; in addition, stipulate the contents of such procedures. (Article 3 of Draft Regulation)

4.     Indicate the types of property deeds which insurance enterprises may invest. (Article 4 of Draft Regulation)

5.     The recognition criteria for real estate investment by insurance enterprises regarding immediate use and income generation. (Article 5 of Draft Regulation)

6.     Conditions that insurance enterprises should meet for investment in real estate. (Article 6 of Draft Regulation)

7.     Rules for special approval for real estate project. (Article 7 of Draft Regulation)

8.     Application documents and description for special approval of real estate project. (Article 8 of Draft Regulation)

9.     Requirements and relevant rules for acquiring specific land and transferring development right by the insurance enterprise. (Article 9 of Draft Regulation)

10.   Rules for special approval for deformed land, publicly maintained roads, or land for public facilities held by the insurance enterprise. (Article 10 of Draft Regulation)

11.   Rules for obtaining appraisal reports regarding acquisition or disposal of real estate. (Article 11 of Draft Regulation)

12.   Matters to be reported to or approved by the board of directors regarding real estate investment by the insurance enterprise. (Article 12 of Draft Regulation)

13.   Effective date of this Regulation. (Article 13 of Draft Regulation)