1.    Taiwan Stock Exchange Corporation (TWSE) and relevant organizations released the Stewardship Principles for Institutional Investors
To encourage institutional investors to actively exert their influence and urge companies to further improve corporate governance, so as to enhance their long-term investment value, the TWSE—working together with the Taiwan Financial Services Roundtable (TFSR), the Taiwan Depository & Clearing Corporation (TDCC), and the Securities Investment Trust and Consulting Association of the R.O.C. (SITCA)—jointly launched the Stewardship Principles for Institutional Investors on 30 June 2016. The TWSE plans to hold a signing ceremony in August 2016, and institutional investors will be invited to express their support and endorse the Principles.
2.    FSC Adopts Provisions Governing Amounts Set Aside by Securities and Futures Firms as Special Reserve and the Uses of the Reserve
In response to the business development needs of securities firms and futures commission merchants, the FSC on 2 August 2016 amended Article 14 of the Regulations Governing Securities Firms and Article 18 of the Regulations Governing Futures Commission Merchants by adding a new provision authorizing the FSC to separately impose appropriation requirements regarding the amounts to be set aside by securities firms and securities futures merchants as special reserve for FINTECH development purposes, and the scopes for which that reserve may be used.
On 5 August 2016, acting upon the new provision as well as Article 11 of the Regulations Governing Securities Investment Trust Enterprises, the FSC issued an order requiring securities firms, securities investment trust enterprises, and futures commission merchants to set aside a special reserve of 0.5% to 1% from their net profit after tax when distributing their yearly earnings from FY 2016 to FY2018. The requirement has been issued in response to the development of financial technologies (Fintech), with an eye to protecting the interests of industry personnel. In addition, starting from FY 2017, the aforementioned firms will be allowed to reverse the special reserve within an amount equal to the expenditures stemming from employee re-training, re-assignments, or relocations made necessary by the introduction of financial technology.