The FSC requires the securities and futures sectors to strengthen protection measures for the senior financial consumers
2022-04-08
According to National Development Council’s estimates, Taiwan will turn into the super-aged society and the share of the population aged 65 or over is expected to exceed 20% in 2025. To enhance protection for senior financial consumers, the FSC supervises the Taiwan Securities Association, Securities Investment Trust & Consulting Association, and National Futures Association to establish self-discipline rules for securities and futures sector companies to incorporate into internal control to exercise due care to protect the elderly from financial abuse.
The elderly are the financial consumers aged 65 or over in accordance with the Article 2 of Senior Citizens Welfare Act. The securities and futures sectors should implement the elderly protection measures as follows:
(1) For Know Your Customer (KYC) procedure, design appropriate risk profile assessment mechanism for the elderly that matches their risk characteristics.
(2) For Know Your Product (KYP) procedure, consider factors with higher influence for the elderly.
(3) When conducting suitability analysis, appropriately assess and explain the suitability of the product to be promoted and the reasons for the promotion.
(4) Enhance the readability of advertising and contractual documents.
(5) When noticing red flag behavior of the elderly, it is advisable to ask caring questions.
(6) Establish transaction review or confirmation mechanism for the sale of high-risk products to the elderly and transaction monitoring and enhanced inspection mechanisms for the elderly.
The securities and futures sector companies shall incorporate the self-disciplined protection measures into internal control in 6 months from now. The self-discipline rules are effective since October 1, 2022. The FSC also supervises the securities associations to hold promotion seminar and provide assistance in internal control implementation and employee capacity building if necessary to ensure full compliance.
The FSC will continue to urge the securities and futures sectors to attach the importance to the compliance in Treating Customer Fairly Principle, through mutual trust and mutual benefit, thereby creating a win-win situation for both the elderly and firms.
The elderly are the financial consumers aged 65 or over in accordance with the Article 2 of Senior Citizens Welfare Act. The securities and futures sectors should implement the elderly protection measures as follows:
(1) For Know Your Customer (KYC) procedure, design appropriate risk profile assessment mechanism for the elderly that matches their risk characteristics.
(2) For Know Your Product (KYP) procedure, consider factors with higher influence for the elderly.
(3) When conducting suitability analysis, appropriately assess and explain the suitability of the product to be promoted and the reasons for the promotion.
(4) Enhance the readability of advertising and contractual documents.
(5) When noticing red flag behavior of the elderly, it is advisable to ask caring questions.
(6) Establish transaction review or confirmation mechanism for the sale of high-risk products to the elderly and transaction monitoring and enhanced inspection mechanisms for the elderly.
The securities and futures sector companies shall incorporate the self-disciplined protection measures into internal control in 6 months from now. The self-discipline rules are effective since October 1, 2022. The FSC also supervises the securities associations to hold promotion seminar and provide assistance in internal control implementation and employee capacity building if necessary to ensure full compliance.
The FSC will continue to urge the securities and futures sectors to attach the importance to the compliance in Treating Customer Fairly Principle, through mutual trust and mutual benefit, thereby creating a win-win situation for both the elderly and firms.
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Update：
2022-04-13