New rules to curb Taiwan insurer bond ETF investing

Taiwan insurers have had a growing appetite for bond exchange-traded funds (ETFs), courtesy of a quirk in local rules, but the island’s financial regulator has imposed a higher risk charge on the assets to reduce this hunger. Taiwanese insurers investing into bond ETFs that track an overseas index will  find their allocations subject to a 6.61% foreign currency risk charge, the Financial Supervisory Commission (FSC) said last week.  That comes on top of risk charges of 6.33% and…