On June 10, 2020, with respect to the Securities Investor and Futures Trader Protection Act (the “Investor Protection Act”), the President announced an amendment to Article 10-1 (Initiation by the Protection Institution of Derivative Suits and Actions Petitioning a Court to Render a Judgment or Ruling of Dismissal from Office); an amendment to Article 10-2 (Provisions Applicable Mutatis Mutandis to Foreign Companies); an amendment to Article 19 (Custody and Utilization of the Protection Fund) and to Article 26 (Mediation Agreement, operating mechanisms and other provisions); and the Executive Yuan agreed to have it enter into force from August 1 of the same year. The Financial Supervisory Commission shall investigate and plan forward in accordance with the amendments to the Investor Protection Act, namely the "Draft Amendments to Partial Provisions of the Regulations Governing the Securities Investor and Futures Trader Protection Institution" and the "Draft Amendments to Article 21 of the Regulations Governing the Organization and Mediation Procedures of Securities Investor and Futures Trader Protection Institution Mediation Committees." Furthermore, the regulatory notices have been completed and will be issued and implemented in the near future in accordance with the administrative procedures. Key amendment provisions are as follows:

1.In line with the amendments to Article 10-1 and Article 10-2 of the Investor Protection Act, litigation events handled by specified protection institutions in accordance with the aforementioned articles shall be reported to the Financial Supervisory Commission for future reference and case handling methods shall be formulated.

2.In line with the amendment to Article 19 of the Investor Protection act, the revised protection institutions should hold stocks of emerging market companies.

3.In line with the amendment to Article 10-1 of the Investor Protection Act, managers and employees of specified protection institutions may not concurrently hold any form of position or honorary position in an emerging market company.

4.In line with the amendment to Article 26 of the Investor Protection Act, updates to a mediation case file shall be submitted to the court for approval in conjunction with the mediation document, as well as the regulations governing the application of procedures for service of mediation documents and the reason why the mediation document has not been approved by the court.

 

Contact unit: Securities Trading Division, Securities and Futures Bureau

Contact person: Section Chief Shih

Contact telephone: 02-2774-7130

For any questions, please write to:FSCmail