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Important Measures

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Important Measure November 2018

一、Amendments to the Regulations Governing the Acquisition and Disposal of Assets by Public Companies
The FSC introduced amendments to the Regulations on November 26, 2018, in order to align with the adoption of International Financial Reporting Standards No 16 “Leases” (IFRS 16), enhance information disclosure quality with regard to acquisition and disposal of assets for public companies and clarify the responsibilities of external experts. The main points of the amendments are as follows:
1.    The FSC has expanded the scope of “right-of-use assets” and relaxed the requirements on the assessment and approval process for acquisition or disposal of business-use equipment and right-of-use assets or real estate right-of-use assets between a public company and its 100% held subsidiary.
2.    The FSC has stipulated the definition of “investment professionals” and waived the announcement requirement for subscription by investment professionals of ordinary corporate bonds that are offered and issued in the foreign primary market, and subscription or redemption of funds issued by domestic securities investment trust enterprises and futures trust enterprises.
3.    For a construction company with paid-in capital over NT$ 10 billion to dispose of a self-constructed building to an unrelated party, the threshold of disclosure and reporting requirements in terms of transaction amount is raised from NT$ 500 million to NT$ 1 billion.
4.    The passive qualifications of external experts and required information about their assessment, audit and statement in their valuation reports or opinions are now clearly defined.
5.    The amendments will be taking into force from January 1, 2019 for the adoption of timeline of IFRS 16.
二、Renaming and amendments to the Regulations Governing Anti-Money Laundering for Certified Public Accountant
The FSC introduced amendments to the Regulations Governing Anti-Money Laundering for Certified Public Accountant, renamed the Regulations as “Regulations Governing Anti-money Laundering and Countering the Financing of Terrorism for Certified Public Accountants”, and abolished the Directions Governing Anti-Money Laundering for Certified Public Accountant on November 9, 2018, for alignment with the amendments to the Money Laundering Control Act and the Counter-Terrorism Financing Act on November 7, 2018. The amendments have the following main points:
1.    Specific requirements are laid down on reporting method and process of a CPA when he/she is aware of properties or property interests and locations of designated sanctioned individuals or entities for alignment with Article 7 of the Counter-Terrorism Financing Act.
2.    Specific requirements are laid down on activities, implementation measures and audit methods of a CPA’s internal control and audit system for anti-money laundering purpose for alignment with Article 6 of the Money Laundering Control Act.
3.    Specific requirements are laid down on customer due diligence (CDD) and ongoing due diligence based on risk-based approach, a CPA’s CDD for Politically Exposed Persons (PEPs), and changes to the scope and methods of the enhanced due diligence, record keeping and reporting of suspicious transactions made based on Financial Action Task Force (FATF) Recommendations and the Regulations Governing Anti-Money Laundering of Financial Institutions.
Visitor: 958   Update: 2019-01-03