Exploration of Offshore Securities Unit
Date Issued
2014
Date
2014
Author(s)
Huang, Yung-Sung
Abstract
In view of operation difficulty and serious domestic capital outflows, securities firms have worked together with the government to promote the "Offshore Securities Unit." "Offshore Securities Unit", or OSU, is one of the main financial policies currently promoted by the government. OSU may be carried out together with " Cross-Strait Specialty Finance", "Personal Financial Platform", "Free Economic Model Zone" and other plans as financial deregulation and trade opening measures to facilitate the promotion of foreign currency securities business by securities firms.
In the R.O.C., OSU is based on the legal framework of the " Offshore Banking Act." Participants are expanded to include securities firms on the basis of the banking OBU (Offshore Banking Unit, or OBU). The purpose is to have certain securities business in which the OBU is involved undertaken by securities firms with expertise in securities.
Therefore, the competent authority has amended the parent law "Offshore Banking Act" and sub-law "Offshore Banking Act Enforcement Rules" and further enacted two regulations: "Offshore Securities Unit Regulations" and "Regulations Governing Foreign Exchange Business of Securities Firms." The business regulations and commodity laws and regulations governing foreign currency business have also been amended. As a result, investment regulations governing OSU are complete. An outline and the content of each such act and regulation are provided in this paper.
This paper discusses a number of aspects of the OSU, the most important being the business scope, source of funds in foreign currency, and foreign exchange business, with the most tangible benefits of RMB products. These issues are discussed in separate sections at length. As regards the deregulation policy, I have also compiled and predicted the contents on which the competent authority is currently deliberating.
The last section of this paper presents the connection between the effects of the development of the OSU and the "Free Economic Model Zone" being promoted by the government. I am generally very positive about the OSU mainly because it provides opportunities for local securities firms to transform into investment banks. The development regarding foreign exchange and trade opening is not satisfactory in a number of areas, though. In this regard, I have also provided several recommendations for decision makers'' reference toward the end of the paper.
Subjects
離境證券業務
國際證券業務分公司
國際金融業務分行
國際金融業務條例
Type
thesis
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