In line with the SEC’s initiative to refine the definitions of institutional investors and the investment capital used in assessing financial standing for more appropriateness, the SEC Board has approved the principles for amending the definitions of institutional investors to appropriately encompass capital market business operators and personnel, while also broadening the investment capital definition to more accurately reflect investors’ financial standing and encompass a wider range of existing investment products, thereby enabling business operators to provide services and recommend investment products that are better aligned with investors’ risk profiles and investment needs.

Accordingly, the SEC has issued notifications* to amend the relevant criteria, with the key details as follows:

    1. Amendment to the definition of institutional investors to include digital asset business operators, investment planners, and investment consultants as institutional investors;

    2. Amendment to the definition of investment capital to include direct or indirect investment in securities, derivatives, investment tokens, and government tokens (G-token).

In addition, the SEC has expanded the definition of institutional investors for the purpose of service provision by securities and derivatives business operators to include digital asset business operators. This is to ensure that services and client treatments are conducted in an appropriate manner and are aligned with other types of services.

The amended notifications will come into effect on 1 March 2026.

Notes:

* Two relevant notifications are:  

(1) Notification of the Securities and Exchange Commission No. KorJor. 1/2569 Re: Determination of Definitions of Institutional Investors, Ultra-High Net Worth Investors, and High Net Worth Investors (No. 3), dated 9 February 2026, together with the annexed table.

(2) Notification of the Office of the Securities and Exchange Commission No. SorThor. 1/2569 Re: Determination of Additional Definition of Institutional Investors under the Notification on Standard Conduct of Business, Management Arrangement, Operating Systems, and Providing Services to Clients of Securities Companies and Derivatives Intermediaries, dated 9 February 2026.