TAI FSC High-Yield Bond Funds Risk

On Apr. 6, TAI FSC reminded investors of high-yield bond funds risks.

  • TAI FSC reminded investors investing in high-yield bond funds that they should carefully assess their risk tolerance, as the risk of default is relatively high.
  • High-Yield Bond Funds
  • As of Feb. 2021, there were 54 high-yield bond funds issued, and 4 prototype bond ETFs holding high-yield bonds, with a total size of approximately NTD218.4bn.
  • TAI FSC has stipulated that high-yield bond funds should be marked with bold or distinctive color in a similar-sized font after the fund name, indicating higher risk.
  • Risk warnings should be prominently printed in public brochures, advertising material.
  • Investors who are not professional investment institutions should sign a risk notice prior to applying for high-yield bond funds, stating that they are aware of the risks.

Regulators TAI FSC
Entity Types B/D; Inv Co
Reference PR 4/6/2021
Functions Advertising; Compliance; Financial; Risk; Sales Practices; Suitability
Countries Taiwan
Products ETFs; Fixed Income; Fund Mgt
Regions AP
Rule Type Guidance
Rule Date 4/6/2021
Effective Date 4/6/2021
Rule Id 102182
Linked to N/A
Reg. Last Update 4/6/2021
Report Section International

Last substantive update on 04/07/2021