Taiwan
Legislative and Regulatory Amendments
- Financial Supervisory Commission (FSC)
Regulations for Securities Firms' Brokerage of Foreign Securities
The FSC issued an order regarding securities firms' management of foreign securities transactions, specifying conditions under which these firms can accept orders from non-professional investors.
Date of Release: 1 Oct 2024
Implementation on: 1 Oct 2024
Applicable to: Securities Firms
The FSC issued regulations clarifying the application of insider trading rules for insiders of publicly listed companies who transfer or acquire shares in connection with excess allocations during initial public offerings.
Date of Release: 4 Oct 2024
Implementation on: 4 Oct 2024
Applicable to: Directors, supervisors, managers, or shareholders holding more than 10% of the total shares of a publicly listed company.
Order Regarding Article 82 of the Securities Exchange Act
The FSC issued a directive regarding Article 82 of the Securities and Exchange Act, aimed at standardising underwriting practices and rationalising fees. The new rules stipulate that underwriting commissions for securities cannot exceed 10% of the total amount of securities underwritten, while selling fees for securities cannot exceed 5% of the total amount sold. This directive is effective immediately and rescinds a previous regulation from 6 December 2004.
Date of Release: 21 Oct 2024
Implementation on: 21 Oct 2024
Applicable to: Securities Firms
The FSC issued a directive regarding the disclosure requirements for securities investment trust funds, specifying that the designated information reporting website is the Public Information Observation Station. It clarifies that the most recent financial reports refer to annual and semi-annual reports as per relevant regulations. The directive is effective immediately and rescinds a previous regulation from 11 November 2004.
Date of Release: 23 Oct 2024
Implementation on: 23 Oct 2024
Applicable to: Securities Investment Trusts
The FSC issued a directive regarding Article 91, Paragraph 2 of the Regulations Governing the Management of Securities Investment Trust Funds, specifying that the designated reporting method includes transmission of fund-related information via the Securities Investment Trust and Consulting Association's website or through the Public Information Observation Station. Securities investment trust businesses must prominently disclose their selected announcement method in their prospectuses and update them if changes occur. The directive is effective immediately and revokes a previous regulation from 5 January 2005.
Date of Release: 23 Oct 2024
Implementation on: 23 Oct 2024
Applicable to: Securities Investment Trusts
Operation Directions of Financial Institutions Applying for Business Trial
The FSC announced that it will soon promulgate the "Operation Directions of Financial Institutions Applying for Business Trial" which aims to relax the scope of business trials that can be undertaken by financial institutions, expand the types of financial institutions that can apply for business trials, establish a priority review mechanism for applications that are conducive to financial inclusion, and encourage financial institutions to collaborate with domestic and foreign fintech companies in business trials to enhance the overall development of the financial market.
Date of Release: 24 Oct 2024
Implementation on: To be commenced soon.
Applicable to: Financial Institutions
Draft Amendment to the Securities Investment Advisory Business Management Rules
The FSC announced the completion of the preliminary announcement process for amendments to the “Securities Investment Advisory Business Management Rules” to enhance regulation of automated investment advisory services, which have seen significant growth. Key changes include elevating important self-regulatory provisions to legal status, strengthening internal management requirements, and establishing external review mechanisms by the investment trust and advisory association. Additionally, there will be a one-year grace period for existing automated advisory service providers to comply with the new regulations, ensuring investor protection and promoting industry development.
Date of Release: 24 Oct 2024
Implementation on: To be released soon.
Applicable to: Providers of automated investment advisory services
The FSC announced its approval of regulations for securities investment trust and advisory firms to operate specific businesses, including the sale of foreign fund products to high-net-worth clients under certain conditions. These firms can collaborate with foreign asset management institutions to provide various services related to these funds, as long as they comply with regulatory standards. The new rules aim to facilitate investment opportunities while ensuring appropriate consumer protection and adherence to financial regulations.
Date of Release: 25 Oct 2024
Implementation on: 25 Oct 2024
Applicable to: Securities Investment Consulting Business, Securities Investment Trust Business
Amendment to Certain Provisions of the "Regulations for Securities Investment Advisory Firms."
The FSC announced the amendments made to certain provisions of the “Regulations for Securities Investment Advisory Firms.” Revised provisions are outlined in the attachment to the news release.
Date of Release: 25 Oct 2024
Implementation on: 25 Oct 2024
Applicable to: Securities Investment Advisory Business
Abolition of Order No. 1090147633 issued by the Commission on May 31, 2021
The FSC announced the abolishment of Order No. 1090147633 issued on 31 May 2021, and this abolition takes effect immediately.
Date of Release: 28 Oct 2024
Implementation on: 28 Oct 2024
Applicable to: Securities Investment Advisory Business, Securities Investment Trust Business
The FSC announced that the guidelines titled "Guidelines for Securities Investment Trust Firms Using Domestic Bond-Type Securities Investment Trust Funds to Engage in Hedging Transactions Related to Securities Derived from the London Interbank Offered Rate" shall be suspended effective immediately.
Date of Release: 29 Oct 2024
Implementation on: 29 Oct 2024
Applicable to: Securities Investment Trust Business
The FSC announced the application document format required for securities investment trust firms that are not publicly traded when issuing securities for capital increase or reduction, effective immediately.
Date of Release: 29 Oct 2024
Implementation on: 29 Oct 2024
Applicable to: Securities Investment Trust Business
The FSC issued an order allowing private placement securities investment trust funds to engage in trading derivatives related to currencies, securities, interest rates, or indices outside of exchanges. The risk exposure for these funds must comply with specific regulatory provisions. This order replaces a previous directive from 8 December 2004, which is now abolished.
Date of Release: 29 Oct 2024
Implementation on: 29 Oct 2024
Applicable to: Securities Investment Trust Business
Upcoming Commencement of New Anti-money Laundering Regulations for VASPs
The FSC issued a warning regarding the upcoming commencement of new anti-money laundering regulations that will require businesses and individuals providing virtual asset services (hereinafter referred to as “VASP”) to register with the FSC. From the effective date, those who have not completed the AML registration with the FSC according to the regulations will not be allowed to engage in virtual asset service activities. Violators may face imprisonment of up to two years, detention, or a fine of up to NT$5 million. For legal entities in violation, in addition to penalties for the responsible individuals, the entity may also be fined up to NT$50 million.
Date of Release: 14 Nov 2024
Implementation on: To be commenced soon.
Applicable to: VASPs
The FSC announced that it had developed the draft regulations for the AML registration of VASPs and was also amending the Regulations for Anti-Money Laundering and Combating Terrorist Financing for Virtual Currency Platforms and Trading Businesses.
Date of Release: 21 Nov 2024
Implementation on: To be released in the near future.
Applicable to: VASPs and Virtual Currency Platforms and Trading Businesses
Launch of a Thematic Pilot Program for “Virtual Asset Custody Services”
The FSC announced the launch of a thematic pilot program for “Virtual Asset Custody Services.” From 1 January 2025, the FSC officially accepts applications from businesses wishing to participate in this pilot program. The initiative aims to promote the development of safe and reliable virtual asset custody services by financial institutions and to support domestic financial innovation.
Date of Release: 28 Nov 2024
Implementation on: 1 Jan 2025
Applicable to: Virtual Asset Custody Businesses
The FSC announced the upcoming issuance of the “Guidelines for Financial Institutions and Virtual Asset Service Providers to Prevent Fraudulent Activities” (hereinafter referred to as the Guidelines). These guidelines will regulate two main subjects: financial institutions and VASPs, focusing on four management targets: deposit accounts, electronic payment accounts, credit cards, and virtual asset accounts. The guidelines will specify mechanisms for industry inquiries, reporting to judicial police, joint prevention measures, and the process for returning funds that victims lost to fraud, aimed at preventing and curbing the misuse of financial services for fraudulent activities and enhancing the protection of public interests.
Date of Release: 28 Nov 2024
Implementation on: To be released soon.
Applicable to: Virtual Asset Service Providers
MOU between Taiwan and Lithuania
The FSC announced that representatives of Taiwan and Lithuania jointly signed on 30 December 2024 the Memorandum of Understanding (MoU) on Cooperation in the Field of Innovation in Financial Services, which includes provisions for the exchange of information on emerging market trends and development, as well as on regulatory issues regarding financial innovation, and the promotion of cooperation among industry representatives on issues of mutual concern.
Date of Release: 31 Dec 2024
Implementation on: 30 Dec 2024
Applicable to: Financial Services
Consultations
- Financial Supervisory Commission (FSC)
Public Consultation on the Thematic Business Trial for "Virtual Asset Custody Business"
The FSC issued relevant explanatory materials to gather public opinions on the thematic business trial for “Virtual Asset Custody Business.” Allowing financial institutions to manage virtual asset custody is one of the measures under the FSC's five strategies to promote the development of financial technology, specifically “Exploring opportunities for financial technology development to support financial transformation.” The FSC stated that the period for collecting public opinions on this explanatory material is 15 days.
Consultation Period: 8 Oct 2024 – 22 Dec 2024
Applicable to: Financial Industry
The FSC made an announcement in respect of the draft amendment to Article 17 of the Regulations Governing the Management of Discretionary Investment Business by Securities Investment Trust Enterprises and Securities Investment Consulting Enterprises. The proposed amendments aim to increase the operational flexibility for clients' entrusted investment assets by securities investment trust enterprises or securities investment consulting enterprises, attract funds from domestic and foreign institutional investors for discretionary investment by domestic operators, and expand the scale of domestic asset management. The draft amendment will be announced in accordance with the Administrative Procedure Act to solicit opinions from all parties. Interested parties are invited to submit their comments within 30 days from the day following the announcement on the FSC's “Regulatory Inquiry System” webpage under “Draft Announcement.”
Consultation Period: Within 30 days from the date of the publication
Applicable to: Asset Management Sector
The FSC announced that it has prepared the draft amendment of the "Implementation Rules for the Internal Audit and Internal Control System of Specialised Electronic Payment Institutions" (hereinafter referred to as the "Rules") and the period of public comments shall soon begin to obtain opinions of all sectors in accordance with the Administrative Procedure Act. The Rules are amended to increase the financial information security capacity, protect the rights of users, and meet the requirements for financial supervision.
Consultation Period: Within 60 days after the announcement
Applicable to: Specialised Electronic Payment Institutions
This document is provided for information purposes only and does not constitute legal, tax, investment, regulatory, accounting or other professional advice. For more information on the legal and regulatory status of IQ-EQ companies please visit www.iqeq.com/legal-and-compliance.