(July 23): When fund managers in Taiwan arrive at work each morning, they have to lock away their mobile phones before the stock and bond markets open, and can’t retrieve their devices until the end of the trading day.

Those strict rules have been in place for about two years, and some investment firms are now pushing for change. 

An industry group for the island’s asset managers is studying a proposal to let portfolio managers use mobile phones during Taiwan trading hours, according to people familiar with the matter who asked not to be identified because the deliberations are not public. The Securities Investment Trust and Consulting Association (Sitca), a self-regulatory organisation whose members include foreign and domestic investment firms, often advises Taiwan’s Financial Supervisory Commission (FSC) on policy reforms. 

The rule on mobile phones was formalised in 2024 to guard against insider trading and to prevent individuals privy to market-moving information to use that to trade in personal or nominee accounts. That year, six former fund managers from four investment firms were indicted for front-running trades using accounts held by relatives and friends. The restriction applies only to buy-side asset managers. Banks, brokerages and insurers are not officially bound by the same ban.

The FSC and Sitca, the industry group, declined to comment. 

Similar rules exist in mainland China, where traders and investment professionals at brokerages and asset managers aren’t allowed to bring their personal phones onto trading floors. In Hong Kong and other markets, traders and money managers can generally keep their personal mobile phones with them at work, but aren’t supposed to use non-work devices for business communications. 

In Taiwan, portfolio managers leave their personal mobile devices in designated storage rooms before markets open at 9am, and have to fill out a sign-in record each time they enter the room. They can’t get their phones back until trading closes at 1.30pm. 

The restrictions have created inconveniences, including cases where individuals couldn’t be reached for emergency personal matters, according to people familiar with the proposal. The mobile phone issue has emerged as a top priority among the island’s asset managers, some of which believe it’s hurting their ability to retain talent, the people said. 

The FSC has asked the industry group to propose supplementary measures for internal controls if phones were allowed on the trading floor, according to one of the people. The association is collecting opinions from asset management firms. One suggestion is to let fund managers use company-issued mobile phones during trading hours, as the devices would enable firms to monitor calls and messages, the people said.

Uploaded by Felyx Teoh