1. Eligibility Conditions Relaxed for Issuers of Level 1 ADRs (Non-Capital Raising ADRs) on the Overseas Over-the-Counter Market
To expand the channels for investment by overseas investors, and increase overseas awareness of Taiwan enterprises, the Financial Supervisory Commission (FSC) on 23 January 2017 gave approval for the Taipei Exchange (TPEx) to amend its Procedures for the Review of Issuance of Overseas Depositary Receipts in a Foreign Over-the-Counter Market. Under the amendment, permissions to issue Level 1 ADRs are granted to any TPEx listed company that, at the end of each of the latest 3 months, has ranked within the top 100 TPEx listed companies in market capitalization, has high liquidity, and is free of any abnormal circumstances. The TPEx announced and implemented the amendment on 6 February 2017.
2. Offering and Sale of Futures Trust Funds Relaxed By Partial Amendments to the Regulations Governing Futures Trust Enterprises and Regulations Governing Futures Trust Funds
To promote the digital financial environment and advance the development of futures trust business, and to meet practical needs in the industry, the FSC on 18 February 2017 issued partial amendments to the Regulations Governing Futures Trust Enterprises and Regulations Governing Futures Trust Funds. Among key points of the amendments are the following: (1) when accepting a customer’s subscription to a futures trust fund, a futures trust enterprise may use electronic means to inform the customer of the nature and possible risks of the fund; (2) the criteria for associated persons to conduct futures trust fund sales business is relaxed; (3) the procedures that futures trust enterprises submit fund offering plans for the board’s deliberation are amended, and submission to the board is no longer required for follow-on offerings of funds; (4) an issuance plan and board meeting minutes are no longer required for follow-on offerings; (5) the monetary limit on stock trades that a fund may conduct through any single securities firm is lifted.
3. Scope of Futures Advisory Enterprise Business Concurrently Operated by Securities Brokers and Securities Investment Consulting Enterprises Expanded By Amendments to the Standards Governing the Establishment of Futures Advisory Enterprises and the Regulations Governing Futures Advisory Enterprises
To meet business needs of securities brokers and securities investment consulting enterprises concurrently operating futures advisory enterprises, the FSC on 18 February 2017 issued amendments to Article 3 of the Standards Governing the Establishment of Futures Advisory Enterprises and Articles 2 and 11 of the Regulations Governing Futures Advisory Enterprises. Key points of the amendments include the following: (1) the scope of futures advisory enterprise business that may be concurrently operated by securities brokers and securities investment consulting enterprises is expanded, and is no longer limited to securities-related futures advisory business; (2) futures advisory enterprises are allowed to use electronic means to explain to principals the natures, trading conditions, and possible risks of futures products.
4. Funds of Funds Permitted to Engage in Trading of Securities-Related Products for Purposes of Increasing Investment Efficiency
To pave the way for greater financial innovation and enhance the investment flexibility and competitiveness of onshore fund of funds, the FSC on 3 February 2017 announced that securities investment trust enterprises utilizing fund of funds may engage in trading of securities-related products to meet hedging needs or to increase investment efficiency.
5. Partial Amendment to the Regulations Governing the Preparation of Financial Reports by Securities Firms to Accommodate the IFRSs Endorsed for Application in Taiwan in 2017; FSC Orders Regarding Compliance Matters for Auditors Reporting on the Review of Other Disclosures, the Format of Financial Reports of Securities Firms, and the Public Announcement and Filing Checklist for Financial Reports of Securities Firms
To accommodate the scope of the IFRSs Endorsed for Application in Taiwan in 2017, and after reviewing the status of implementation of the IFRSs and examining outdated legal provisions, the FSC on 14 February 2017 amended the Regulations Governing the Preparation of Financial Reports by Securities Firms. Additionally, in tandem with the amendment of those Regulations, related accompanying forms, compliance matters for auditors reporting on the review of other disclosures, and provisions for securities firms subject to Statement of Auditing Standards No. 57 “Forming an Opinion and Reporting on Financial Statements” are also amended and set out. The FSC on 16 February 2017 issued a relevant interpretive order and on 10 March issued amendments to relevant items in the public announcement and filing checklists to be used in securities firms'' annual and semi-annual financial reports and in the checklist to be used in their quarterly financial reports. The amended checklists will be applicable when the securities firms file their 2016 annual financial reports and thereafter.