Tarf crackdown forces Taiwan banks to offer alternatives
Target redemption forwards with a capped loss are expected to be launched later this year following approval from Taiwan's FSC
A variation of the target redemption forward (Tarf) is now being sold by Taiwanese banks following a crackdown on the sale of Tarf products by the Financial Supervisory Commission (FSC) due to losses experienced by investors following the depreciation of the renminbi against the US dollar from March to May earlier this year.
In April, the Taiwanese regulator sanctioned Bank Sinopac for derivatives
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