Advance Notice on Draft Amendments to Articles of “Regulations Governing Responsible Persons and Associated Persons of Securities Investment Trust Enterprises” and “Regulations Governing Responsible Persons and Associated Persons of Securities Investment Consulting Enterprises”
2022-09-15
In order to strengthen the management of the operation of securities investment trust enterprises (SITES) and securities investment consulting enterprises (SICES) and implement corporate governance, the FSC intends to amend some articles of the “Regulations Governing Responsible Persons and Associated Persons of Securities Investment Trust Enterprises” and the “Regulations Governing Responsible Persons and Associated Persons of Securities Investment Consulting Enterprises” ("SITE personnel regulations" and "SICE personnel regulations"), which will be announced in the near future in accordance with administrative procedures and regulations to solicit opinions from all parties. The key points of the amendments are as follows:
I. In order to strengthen the operation and management of SITEs and SICEs and implement corporate governance, it is added that the board of directors shall be responsible for selecting and supervising managers, and shall supervise the company in implementing the accountability of managers and establish relevant systems (amended article 2-2 of the SITE personnel regulations, and amended article 2-1 of the SICE personnel regulations).
II. In view of the increasingly popularity of the group business model in the country where most of the director and supervisor positions are held by the representatives of legal person shareholders or company representatives, in order to control the conflicts of interest from concurrent positions between financial institutions, by referring to the regulations of the banking and insurance industry, it is added that it is presumed that there is a conflict of interest if the natural or legal person director (supervisor) of a SITE or a SICE or a related person concurrently serves as a director (supervisor) of another SITE or SICE, and is in violation of the above-mentioned conflict of interest; the person shall be dismissed if no adjustment is made within the time limit without justified reasons. In addition, the provisions above shall not apply to the government and the SITEs and SICEs in which it directly or indirectly holds 100% of the shares (article 15-1 of the SITE personnel regulations, and amended article 7-1 of the SICE personnel regulations).
III. Considering that SITE and SICE personnel have investment and wealth management needs for their minor children, it is added that if such personnel are the legal agents of their principals, the provisions of not engaging in securities investment or the trading of securities related products on behalf of others shall not apply (amended article 13 of the SITE personnel regulations, and amended article 15 of the SICE personnel regulations).
According to the FSC, these amendments will help strengthen the operation and management of SITEs and SICEs, and promote their sound and sustainable development. In addition to being published in the official gazette of the Executive Yuan, the general description of the draft and a comparison table of the amended articles will be published on the FSC website. If you have any comments, please visit the webpage “Advance Notice of Draft Regulations” on the website “Laws and Regulations Retrieving System” of the FSC (http://law.fsc.gov.tw/) and state your comments, or contact the Securities and Futures Bureau of the FSC within 60 days from the date of the announcement.
Contact unit: Securities Investment Trust and Consulting Division, Securities and Futures Bureau
Tel: (02) 2774-7426
For questions, please write to:FSCmail
I. In order to strengthen the operation and management of SITEs and SICEs and implement corporate governance, it is added that the board of directors shall be responsible for selecting and supervising managers, and shall supervise the company in implementing the accountability of managers and establish relevant systems (amended article 2-2 of the SITE personnel regulations, and amended article 2-1 of the SICE personnel regulations).
II. In view of the increasingly popularity of the group business model in the country where most of the director and supervisor positions are held by the representatives of legal person shareholders or company representatives, in order to control the conflicts of interest from concurrent positions between financial institutions, by referring to the regulations of the banking and insurance industry, it is added that it is presumed that there is a conflict of interest if the natural or legal person director (supervisor) of a SITE or a SICE or a related person concurrently serves as a director (supervisor) of another SITE or SICE, and is in violation of the above-mentioned conflict of interest; the person shall be dismissed if no adjustment is made within the time limit without justified reasons. In addition, the provisions above shall not apply to the government and the SITEs and SICEs in which it directly or indirectly holds 100% of the shares (article 15-1 of the SITE personnel regulations, and amended article 7-1 of the SICE personnel regulations).
III. Considering that SITE and SICE personnel have investment and wealth management needs for their minor children, it is added that if such personnel are the legal agents of their principals, the provisions of not engaging in securities investment or the trading of securities related products on behalf of others shall not apply (amended article 13 of the SITE personnel regulations, and amended article 15 of the SICE personnel regulations).
According to the FSC, these amendments will help strengthen the operation and management of SITEs and SICEs, and promote their sound and sustainable development. In addition to being published in the official gazette of the Executive Yuan, the general description of the draft and a comparison table of the amended articles will be published on the FSC website. If you have any comments, please visit the webpage “Advance Notice of Draft Regulations” on the website “Laws and Regulations Retrieving System” of the FSC (http://law.fsc.gov.tw/) and state your comments, or contact the Securities and Futures Bureau of the FSC within 60 days from the date of the announcement.
Contact unit: Securities Investment Trust and Consulting Division, Securities and Futures Bureau
Tel: (02) 2774-7426
For questions, please write to:FSCmail
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Update：
2022-09-20