1. Regulations Relaxed to Allow Employee Stock Warrants to Be Issued and Treasury Shares to Be Transferred to Holding Company’s Employees

To help enterprises retain talent and to provide flexibility in allocating assets, the Financial Supervisory Commission (FSC) issued an order on 27 December 2018, stipulating that for public companies which issue employee stock warrants in accordance with Article 28-3 of the Securities and Exchange Act, and companies listed on TWSE or TPEx buy back shares to transfer to employees in accordance with Article 28-2, paragraph 1, subparagraph 1 of the Securities and Exchange Act, the scope of those allowed to receive such employee stock warrants or transferred treasury shares has been broadened to the holding company’s employees whom satisfied certain conditions.

2. Amendments Issued to the Directions Governing Foreign Currency Risk Ceilings for Securities Firms

To promote the development of exchange-traded note business and to harmonize with the legal framework, the FSC issued amendments to the Directions Governing Foreign Currency Risk Ceilings for Securities Firms in its Order No. Financial-Supervisory-Securities-Firms-1070118351 on 6 December 2018. The amendments eliminate the US$50 million ceiling on foreign currency exposures while preserving the rule that such exposures may not exceed 15% of a securities firm’s net worth, to maintain control of the foreign exchange exposure of each securities firm.

 

3. Interpretive Rule Issued Regarding Article 5, subparagraph 3 of the Securities and Exchange Act Enforcement Rules Related to the Scope of the Operating Status

The FSC issued an order on 12 December 2018, stipulating that the public announcement and filing of the loan balance up to the end of the preceding month as required under the Regulations Governing Loaning of Funds and Making of Endorsements/Guarantees by Public Companies, and the public announcement and filing of the derivatives transaction information up to the end of the preceding month as required under the Regulations Governing the Acquisition and Disposal of Assets by Public Companies, are other operating status items required to be publicly announced and filed as prescribed by the competent authority under Article 5, subparagraph 3 of the Securities and Exchange Act Enforcement Rules.

4. Amendments Issued to the Regulations Governing the Applicable Scope of Special Circumstances for the Public Announcement and Filing of Financial Reports and Operational Status Reports by Public Companies, Adding the Provision that Public Companies May, Due to Special Circumstances, Extend the Deadline of the Monthly Public Announcement and Filing of Their Operating Status

The FSC issued an amendment to the Regulations Governing the Applicable Scope of Special Circumstances for the Public Announcement and Filing of Financial Reports and Operational Status Reports by Public Companies on 26 December 2018, stipulating that if there is a likelihood that public companies will be unable to publicly announce and file their monthly operational status on time due to a long weekend or other circumstances, the competent authority may announce an extension of the deadline for public announcement and filing. If a public company suffers from an earthquake, flood, or other force majeure event, it may apply to the competent authority for an extension of the deadline for public announcement and filing of the report on its monthly operational status.