Important Measure May 2018
2018-07-04
1.Securities Investment Consulting Enterprises Permitted to Invest in Securities Investment Trust Funds as Nominees for Investors
To diversify the operations of securities investment consulting enterprises, the FSC on May 10th, 2018, pursuant to Article 24, paragraph 1 of the Regulations Governing the Public Offering of Securities Investment Trust Funds by Securities Investment Trust Enterprises, gave approval for securities investment consulting enterprises that serve as distributors for securities investment trust funds and handle payments and receipts of funds through a segregated account at a bank designated by the centralized securities depository enterprises, to subscribe to securities investment trust funds as nominees for investors.
Before conducting the business described above, a securities investment consulting enterprise is required to obtain the investor''s consent in advance, and to sign an agreement with the Taiwan Depository and Clearing Corporation regarding information transmission services and payments and receipts. It’s also required to have comprehensive internal management and risk control mechanisms in place and ensure they are strictly implemented.
2.Amendments to the Regulations Governing the Establishment of Internal Control Systems by Service Enterprises in Securities and Futures Markets
On May 30th, 2018, the FSC introduced amendments to the Regulations to require service enterprises in securities and futures markets to establish whistleblower programs, increase the completeness of corporate groups’ anti-money laundering and combating the financing of terrorism (AML/CFT) activities, and enhance their information security mechanism.
3.Amendments to the Checklists for Securities Firms’ Financial Reports
In response to the adoption of IFRS 9 “Financial Instruments” and IFRS 15 “Revenue from Contracts with Customers“ in 2018, the FSC issued relevant amendments to the Regulations Governing the Preparation of Financial Reports by Securities Firms for application from fiscal year 2018 on September 14th, 2017. Also, to be in line with the application of Auditing Standard No. 65 “Review of Financial Information Performed by the Independent Auditor of the Entity” for reviews beginning with the first quarter of 2018, on April 27th, 2018, the FSC issued amendments to the checklists for securities firms'' annual (semi-annual) and quarterly financial reports, which are applicable to the filing of the first quarter of financial reports starting from fiscal year 2018. As a consequence, the FSC Order No. Financial-Supervisory-Securities-Firms-1060005694 issued on March 10th, 2017 was repealed.
Before conducting the business described above, a securities investment consulting enterprise is required to obtain the investor''s consent in advance, and to sign an agreement with the Taiwan Depository and Clearing Corporation regarding information transmission services and payments and receipts. It’s also required to have comprehensive internal management and risk control mechanisms in place and ensure they are strictly implemented.
2.Amendments to the Regulations Governing the Establishment of Internal Control Systems by Service Enterprises in Securities and Futures Markets
On May 30th, 2018, the FSC introduced amendments to the Regulations to require service enterprises in securities and futures markets to establish whistleblower programs, increase the completeness of corporate groups’ anti-money laundering and combating the financing of terrorism (AML/CFT) activities, and enhance their information security mechanism.
3.Amendments to the Checklists for Securities Firms’ Financial Reports
In response to the adoption of IFRS 9 “Financial Instruments” and IFRS 15 “Revenue from Contracts with Customers“ in 2018, the FSC issued relevant amendments to the Regulations Governing the Preparation of Financial Reports by Securities Firms for application from fiscal year 2018 on September 14th, 2017. Also, to be in line with the application of Auditing Standard No. 65 “Review of Financial Information Performed by the Independent Auditor of the Entity” for reviews beginning with the first quarter of 2018, on April 27th, 2018, the FSC issued amendments to the checklists for securities firms'' annual (semi-annual) and quarterly financial reports, which are applicable to the filing of the first quarter of financial reports starting from fiscal year 2018. As a consequence, the FSC Order No. Financial-Supervisory-Securities-Firms-1060005694 issued on March 10th, 2017 was repealed.
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2018-07-04