Advance Notice Procedure Completed for the Draft Amendment to Some Articles of “Regulations Governing Futures Commission Merchants”, Amendment to be Released in Near Future
2022-12-08
In order to improve the financial flexibility and capital utilization efficiency of futures commission merchants, specify the legal basis for the offering and issuance of securities by futures commission merchants, promote the timeliness of financial information disclosure by futures commission merchants, and strengthen the supervision of overseas investment by futures commission merchants, the Financial Supervisory Commission (FSC) drafted the amendment to relevant provisions of the Regulations Governing Futures Commission Merchants. As the advance notice period has lapsed, the draft amendment will be promulgated and implemented in the near future.
The key points of the amendment to the Regulations are as follows:
I. Adjustment to the filing deadline of some futures commission merchants' annual financial reports: To promote timeliness of financial information disclosure by futures commission merchants, and for the consistency of financial industry supervision, it is expressly stipulated that public futures commission merchants and futures subsidiaries of financial holding companies shall make public announcements and file their annual financial reports to the FSC not later than 75 days after the end of the fiscal year, and this amendment will take effect from fiscal year 2022 (amendments to Articles 24 and 58).
II. Stipulation of the legal basis for the offering and issuance of securities by futures commission merchants: Considering the needs of futures commission merchants in offering and issuing securities and the consistency of supervision, the legal basis for offering and issuance of securities by futures commission merchants is stipulated. In addition, in order to balance the impact of administrative sanctions on the overall business development of futures commission merchants, it is stipulated that the FSC may reject the filing of futures commission merchants for registration of a cash capital increase or corporate bond offering (addition to Articles 18-1 and 18-2).
III. For the consistency of securities and futures supervision, the following provisions are added:
(I) In order to increase the financial flexibility of futures commission merchants, the original provision that half of the accumulated special reserve over 50% of the paid-in capital may be allocated to the paid-in capital will be amended to that the part of the accumulated special reserve over 25% of the paid-in capital may be allocated to the paid-in capital (amendment to Article 18).
(II) In response to Article 228-1 of the Company Act, the distribution of earnings or the appropriation for losses by futures commission merchants shall be processed based on the financial report audited and certified by a certified public accountant (addition to Article 18-3).
(III) In order to strengthen the supervision of overseas investment by futures commission merchants, the time point for subsequent filing of material events occurring to the overseas businesses of futures commission merchants is specified, and that futures commission merchants may apply with the FSC for approval to increase investment in overseas businesses is added (amendment to Article 56-5 and addition to Article 56-10).
Contact unit: Section Chief Bao, Securities Firms Division, Securities and Futures Bureau
Tel: (02) 2774-7360
For questions, please write to:FSCmail
The key points of the amendment to the Regulations are as follows:
I. Adjustment to the filing deadline of some futures commission merchants' annual financial reports: To promote timeliness of financial information disclosure by futures commission merchants, and for the consistency of financial industry supervision, it is expressly stipulated that public futures commission merchants and futures subsidiaries of financial holding companies shall make public announcements and file their annual financial reports to the FSC not later than 75 days after the end of the fiscal year, and this amendment will take effect from fiscal year 2022 (amendments to Articles 24 and 58).
II. Stipulation of the legal basis for the offering and issuance of securities by futures commission merchants: Considering the needs of futures commission merchants in offering and issuing securities and the consistency of supervision, the legal basis for offering and issuance of securities by futures commission merchants is stipulated. In addition, in order to balance the impact of administrative sanctions on the overall business development of futures commission merchants, it is stipulated that the FSC may reject the filing of futures commission merchants for registration of a cash capital increase or corporate bond offering (addition to Articles 18-1 and 18-2).
III. For the consistency of securities and futures supervision, the following provisions are added:
(I) In order to increase the financial flexibility of futures commission merchants, the original provision that half of the accumulated special reserve over 50% of the paid-in capital may be allocated to the paid-in capital will be amended to that the part of the accumulated special reserve over 25% of the paid-in capital may be allocated to the paid-in capital (amendment to Article 18).
(II) In response to Article 228-1 of the Company Act, the distribution of earnings or the appropriation for losses by futures commission merchants shall be processed based on the financial report audited and certified by a certified public accountant (addition to Article 18-3).
(III) In order to strengthen the supervision of overseas investment by futures commission merchants, the time point for subsequent filing of material events occurring to the overseas businesses of futures commission merchants is specified, and that futures commission merchants may apply with the FSC for approval to increase investment in overseas businesses is added (amendment to Article 56-5 and addition to Article 56-10).
Contact unit: Section Chief Bao, Securities Firms Division, Securities and Futures Bureau
Tel: (02) 2774-7360
For questions, please write to:FSCmail
Visitor：
1351
Update：
2022-12-14