Taiwan's Financial Supervisory Commission is drafting a proposal to address the prevalence of structured products in the hope of staving off another run on the mutual funds industry.
Kong Jaw-sheng, chairman of the FSC, says, We'll have a plan out within a month.
Last year domestic investors dumped NT$300 $8.8 billion worth of bond funds in five days. The liquidity crunch was caused by market inefficiencies that built up over several years of falling interest rates, but were shattered when interest rate trends reversed in 2004.
Because illiquid assets are valued at the original purchase price there is virtually no secondary...
