Amendments Proposed to the Financial Investment Services and Capital Markets Act

Laws and Regulations Announcement Amendments Proposed to the Financial Investment Services and Capital Markets Act Agency: Financial Services Commission Law to be amended: Financial Investment Services and Capital Markets Act FSC Notice number: 2018-59 Announcement date: March 9, 2018 Summary: The Financial Services Commission proposed amendments to the Financial Investment Services and Capital Markets Act that are intended to relax certain investment restrictions on private equity funds, reduce compliance burden on collective investment scheme operators (“CIS operators”), and help investors make informed decisions. Key provisions:  CIS operators may deliver fund account statements to investors every six months instead of every three months.  The classes of securities not open to investment by private equity funds are to be limited to equity securities with voting rights so that private equity funds may invest in convertible preferred stocks and redeemable convertible preferred stocks.  For enhanced investor protection, CIS operators are to file disclosures on remuneration for investment managers and their performance to investors. Public comment for the proposed amendments: The public comment period for the proposed amendments ends on April 18, 2018.