You can see the rules and regulations in other jurisdictions.
One of the most prevalent collective investment strategies is securities investment trust funds. These funds can be publicly offered with either approval or registration from the FSC or its designated institution, or privately placed with eligible investors within five days of initial payment. A report on the private placement should be filed with the FSC or the institution designated by the FSC. Securities investment trust enterprises (SITEs) must be licensed by the FSC to conduct public offerings and private placements of securities investment trust funds. Currently, a SITE must have a paid-in capital of at least NT$300 million, and shareholders of a SITE must meet certain qualifications. A fintech company that is not a SITE cannot raise funds the same way as one that is.1
A securities investment trust fund offshore fund may be offered to Taiwan investors (subject to prior approval from the FSC) or privately placed (subject to post-filing with the FSC or its designated institution) if certain qualifications and conditions are met. Taiwan will not accept offshore fintech companies that do not have the characteristics of securities investment trust funds.1
Taiwan's Securities and Exchange Act (SEA) does not require prior approval or effective registration for equity-based crowdfunding platforms.1
The Taipei Exchange's 'Go Incubation Board for Start-ups and Acceleration Firms'1
The Taipei Exchange (TPEx), one of the two securities exchanges in Taiwan, established the Go Incubation Board for Start-up and Acceleration Firms (GISA) in 2014 to assist innovative and creative small non-public companies in raising capital. TPEx amended the regulations governing the GISA in December 2018. Companies with innovative or creative ideas that have potential for development can apply for registration under the GISA. Once TPEx has approved the application, the company can avail themselves of counselling services in matters such as accounting, internal control, marketing and legal affairs. Upon completion of the counselling period, TPEx will then review the company's management team composition, board of directors role, accounting and internal control systems and judge their proposal for capital raising based on its reasonableness and feasibility. If satisfactory, they may proceed to raising funds via GISA. The amount raised by the company through the GISA may not exceed NT$30 million unless otherwise approved. Furthermore, an investor's maximum annual investment through the GISA cannot exceed NT$150,000, except for angel investors as defined by TPEx, or wealthy individuals with assets exceeding TPEx's set amount and knowledge of financial products or trading experience.1
Securities firms are permitted to create crowdfunding platforms, allowing companies with less than NT$50 million of paid-in capital to raise funds on the platform provided that the total amount does not exceed NT$30 million in a year. However, investments made by individual investors cannot exceed NT$150,000 each year unless they are classified as angel investors under TPEx regulations. Individuals with assets over NT$30 million and professional knowledge in financial products or trading experience, as well as company insiders, may have an exemption from this limit.1
While, to date, there are no laws or regulations specifically regulating or governing peer-to-peer lending, the Bankers Association has promulgated a set of Self-Disciplinary Rules of Business Cooperation between Member Banks of the Bankers Association and Peer-to-Peer Lending Operators (the P2P Self-Disciplinary Rules), which has been filed with the FSC.1
Banks may work with peer-to-peer lending operators on the following businesses under the P2P Self-Disciplinary Rules:
