Peng Jin-lung: Insurance Industry's Venture Capital Investment Ratio to Remain Unchanged After Public Offering

(CNA Taipei, July 7) Financial Supervisory Commission (FSC) Chairman Peng Jin-lung stated that four major policies are being implemented to encourage the financial industry to support innovation and development. Furthermore, insurance companies can currently invest in sustainable venture capital firms. The FSC will study and stipulate that after venture capital firms go public, insurance companies can maintain their existing investment ratios without having to reduce their holdings.

Peng Jin-lung spoke at the "2026 Taiwan Venture Capital and Private Equity Investment Annual Conference" today. Peng Jin-lung said that the financial industry can play an important role in promoting innovation. Financial regulation was previously seen as a brake, but in recent years, the thinking has begun to change. If the financial market is considered a car, the most important thing is to move forward, not to stay still. Therefore, it is necessary to ensure a sound braking system, but the foot must be on the accelerator.

Peng Jin-lung observed that the Taiwanese venture capital market is changing. The number of financial institutions investing in venture capital and the amounts invested have grown in recent years, although the growth may not be as satisfactory as expected. FSC statistics show that the number of financial institutions investing in venture capital firms increased from 131 in 2024 to 150 as of March this year, and the investment amount increased from NT$100.6 billion in 2024 to NT$106 billion as of March this year.

The FSC is promoting four major policies to encourage financial support for innovation and development. Peng Jin-lung pointed out that the first is to guide long-term capital into innovation, including encouraging financial holding companies to invest in venture capital businesses and adjusting the risk capital requirements for insurance industry investments.

Second, to strengthen the capital market's support for innovation momentum, the FSC, in consultation with the Taiwan Stock Exchange and the GreTai Securities Market, promoted the "Asia Nasdaq" plan last year. Taiwan relies on its overseas Taiwanese businesses competing globally, which is a unique advantage for Taiwan. If there can be a "mother hen leading chicks" effect, the hope is to bring more startups into Taiwan's capital market, making Taiwan's capital market one of the main technology fundraising centers.

Third, to create a friendly financial innovation environment. Peng Jin-lung pointed out that the FSC will soon study and amend the "Financial Technology Development and Innovation Experiment Act" to expand the scope of financial industry innovation testing and optimize the innovation experiment mechanism. The 32 trial cases approved in 2024 also set a new record.

Fourth, to promote international linkages and attract international capital. Peng Jin-lung stated that the Financial Industry Federation established the FinTech Industry Alliance to promote the FinTech Innovation Fund. Additionally, through Mega Financial Holding, a domestic exchange and investment platform was established. Through a concept similar to bank syndicated loans, various venture capital firms are invited to jointly evaluate investment opportunities.

The Venture Capital Association also proposed many suggestions. Peng Jin-lung pointed out that the threshold for venture capital firms to list on the stock exchange was lowered in May last year. Because venture capital firms measure performance differently from other industries, the FSC has also asked the Taiwan Stock Exchange to study the feasibility of adjusting the listing standards for the "Innovation Board." Furthermore, the Venture Capital Association suggested allowing flexibility in the use of idle funds after listing. As this involves amending relevant regulations in the "Regulations Governing the Guidance of Venture Capital Investment Enterprises," assistance will be provided to submit regulatory adaptation suggestions to the Ministry of Economic Affairs.

Peng Jin-lung pointed out that insurance companies can currently invest in sustainable venture capital firms. However, if these venture capital firms go public or are listed on the stock exchange, there are concerns about whether their holdings need to be reduced. The FSC is currently studying amendments to relevant regulations to stipulate that after venture capital firms go public, insurance companies can maintain their original investment ratios.

According to current regulations, the maximum investment ratio for insurance companies in sustainable venture capital firms is 25%. If a venture capital firm goes public or is listed on the stock exchange, the investment ratio must be adjusted to 10% according to regulations. The FSC is studying amendments to the "Regulations Governing Investment by Insurance Enterprises in Special Projects for Public and Social Services" to stipulate that insurance companies can maintain their original investment ratios in venture capital firms and will not be forced to sell after they go public. (Editor: Chang Chun-mao) 1150707

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