In recent days, Taiwan has seen a surge in the popularity of ETFs, with asset management companies using internet influencers to market these funds and attracting attention. Huang Tianmu, the chairman of the Financial Supervisory Commission (FSC), stated today that the Investment Trust and Consulting Association is currently discussing amendments to the self-regulatory rules for internet influencer advertisements. These regulations are expected to be finalized by the end of June. Additionally, the FSC is also considering whether virtual assets should be subject to special regulations.
The ETF frenzy has swept across Taiwan, particularly with the emergence of the “Yuanta Taiwan Value High Dividend ETF 00940.” Since its launch, this ETF has garnered significant market attention and has led to various disturbances such as the disinvestment of fixed deposits and mortgage properties. The FSC revealed today that the 00940 fund has raised approximately NT$170 billion, setting a new record. During the subscription period, excessive marketing by internet influencers has become a focal point of social concern.
During a special report to the Legislative Yuan’s Finance Committee, Chairman Huang responded to questions regarding the regulation of internet influencer advertisements for financial products. Huang stated that investment trust companies that deliver paid placement marketing advertisements through internet influencers and other social media platforms should comply with the Advertising Regulations of the Investment Trust and Consulting Association. These regulations require clear disclosure within the advertisement, such as identifying the sponsoring company, to ensure that viewers can easily recognize it as marketing information.
Huang disclosed that the Investment Trust and Consulting Association is currently working on enhancing self-regulatory rules concerning the management of internet influencers’ behavior by investment trust companies and fund sales institutions. It is expected that these rules will be finalized by the end of June.
Regarding the practice of internet influencers advocating for mortgage-backed investments in ETFs, Huang expressed concerns about the high risks involved. Additionally, he emphasized that fluctuations in the performance of ETF constituent stocks are not determined by the issuing institution. Past performance does not guarantee future performance.
Furthermore, during a legislative session, Huang was questioned about the management of internet influencer marketing for virtual assets. Huang stated that the FSC primarily regulates virtual asset platforms and currently lacks regulations to restrict internet influencers from endorsing virtual assets. However, the FSC has outsourced research on a special law for virtual assets and plans to release a draft of this law after September this year. The FSC will also refer to international practices to consider whether this law should address internet influencer marketing.
Huang emphasized that virtual assets cannot be compared to ETFs. ETFs are financial products approved by the FSC, whereas virtual assets do not fall under the category of securities with intrinsic value. Currently, the FSC manages virtual assets primarily through the Anti-Money Laundering Act, which authorizes the establishment of regulations for virtual currency platforms and anti-money laundering measures in the virtual currency trading business.
In January of this year, Huang mentioned that the FSC had begun outsourcing research on the feasibility of establishing a special law for virtual assets. The preliminary results of this research are expected to be presented in September. The study will draw on the experiences of other countries to explore more effective ways to regulate the scope and depth of virtual asset management.
For more information, please refer to the related articles:
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