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Important Measures

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Important Measure November 2022

2023-01-18
1.    To promote the disclosure of climate information by TWSE and TPEx Listed Companies, the FSC amended the Regulations Governing Information to be Published in Annual Reports of Public Companies and the Regulations Governing Information to be Published in Public Offering and Issuance Prospectuses
  In step with increasing international attention to climate change-related information, the Financial Supervisory Commission (FSC) is promoting the disclosure of climate and greenhouse gas information by TWSE and TPEx listed companies. For this purpose, on 25 November 2022, the FSC issued related amendments to the Regulations Governing Information to be Published in Annual Reports of Public Companies and the Regulations Governing Information to be Published in Public Offering and Issuance Prospectuses. Under the amendments, all TWSE and TPEx listed companies will be required to disclose climate related information from fiscal year 2024. As for greenhouse gas information, requirements for compulsory scope 1 and scope 2 inventory disclosure and verification will be phased in gradually beginning from fiscal year 2024 based on companies’ capitalization size and industry sector. To respond to questions from the public and industry, the FSC also simultaneously issued a set of Q&A regarding the Sustainable Development Guidemap for TWSE and TPEx Listed Companies, to guide businesses in coming into compliance.
2.     FSC amends“Directions for the Conduct of Wealth Management Business by Securities Firms”
   To enhance the services offered by securities firms concurrently operating trust business and to facilitate greater participation in trust business by securities firms, the FSC amended certain provisions of the Directions for the Conduct of Wealth Management Business by Securities Firms on 7 November 2022. The amendment eases the former restriction under which securities firms were permitted only to provide simple investment trust products for customers, to the extent that securities firms now are allowed to provide and execute various trust products under money and securities trusts according to the needs of their clients. On the same day, the FSC also amended the Q&A of the Directions for the Conduct of Wealth Management Business by Securities Firms, simplifying relevant application procedures and requiring securities firms conducting trust business to introduce accountability systems. When necessary, the FSC may require an interview with the head of a securities firm’s department handling trust and wealth management business. Furthermore, in the event of a breach by a securities firm, the persons responsible will be held accountable in order to strengthen corporate governance and internal control system implementation.
3.    Aligning with the amendments to the IFRSs and Taiwan’s Company Act and the current implementation of the IFRSs in Taiwan, the FSC amended the Regulations Governing the Preparation of Financial Reports by Securities Issuers, Regulations Governing the Preparation of Financial Reports by Securities Firms, and Regulations Governing the Preparation of Financial Reports by Futures Commission Merchants
  Aligning with the amendments made in recent years to the IFRSs and Taiwan’s Company Act and the current progress of implementation of the IFRSs in Taiwan, the FSC on 24 November 2022 issued amendments to the Regulations Governing the Preparation of Financial Reports by Securities Issuers, Regulations Governing the Preparation of Financial Reports by Securities Firms, and Regulations Governing the Preparation of Financial Reports by Futures Commission Merchants. The amendments explicitly define the terms “material,” “accounting estimates,” and “accounting policies,” and strengthen the supervision of accounting changes. In response to the latest amendments to the auditing standards adopted in Taiwan, the amendments make corresponding changes to citation numbering and relevant wording. Further changes to wording reflect the practical operation of the valuation review by CPAs and also reflect an amendment to the Company Act that allows companies to make quarterly earning distributions subject to resolutions by the board of directors. Additionally, the information disclosure procedures for futures commission merchants that are public companies are simplified.
4.    To encourage offshore fund institutions to expand their asset management business in Taiwan on a long-term basis and promote sustainable development, the FSC amended the Incentive Policy for Offshore Funds Development in Taiwan and relevant Q&A on 22 November 2022
(1) To meet the needs of industry participants and encourage offshore fund institutions to operate asset management business in Taiwan on a long-term basis, the amendment relaxes the valid recognition period for the application of preferential measures to offshore fund institutions.
(2) To encourage offshore fund institutions to assist their master agents or business bases in Taiwan to develop ESG related business or cultivate talent in the ESG field, the FSC added illustrative case examples to the Incentive Policy for Offshore Funds Development in Taiwan and relevant Q&A to concretely describe the assessment criteria for “other substantial contributions related to ESG,” so as to promote the sustainable development of asset management industry in Taiwan.
5.    To add leeway for trust enterprises to handle assets of the general public in discretionary investment business, the FSC eases the mandatory threshold at which a trust enterprise must apply for a concurrent business license for discretionary investment businesss
  To add reasonable leeway for trust enterprises to handle assets of the general public in discretionary investment business, by taking into account the current state of economic and financial development in Taiwan and the influence of securities investment trust enterprises and securities investment consulting enterprises in the operation of discretionary investment business, the FSC on 30 November 2022 issued amendment to Article 2 of the Regulations Governing the Conduct of Discretionary Investment Business by Securities Investment Trust Enterprises and Securities Investment Consulting Enterprises. The amendment raises the mandatory threshold for a trust enterprise to apply for a license to concurrently operate discretionary investment business from NT$10 million of relevant trust assets to NT$15 million.
Visitor: 1426   Update: 2023-01-18
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