1.Securities and Futures Enterprises Required to Appoint Chief Corporate Governance Officers by Applicable Deadlines
To enhance corporate governance and support the operations of the boards of directors of securities and futures market service enterprises, the Financial Supervisory Commission (FSC) amended the Regulations Governing the Establishment of Internal Control Systems by Service Enterprises in Securities and Futures Markets by adding Article 36-3 on 15 March 2019, stipulating that service enterprises may, according to their size, business conditions, and management needs, appoint qualified corporate governance personnel in an appropriate number, and may appoint one chief corporate governance officer as the most senior executive for corporate governance affairs. On the same day, the FSC also issued Order No. Financial-Supervisory-Securities-Firms-1080305776, requiring integrated securities firms that are listed on the Taiwan Stock Exchange (TWSE) or the Taipei Exchange (TPEx), or that are subsidiaries of a financial holding company, to appoint a chief corporate governance officer by the end of June 2019, and requiring all publicly issued integrated securities firms and all TSWE and TPEx listed futures commission merchants to appoint a chief corporate governance officer by the end of June 2021.
2.Regulations Governing Loaning of Funds and Making of Endorsements/Guarantees by Public Companies Amended on 7 March 2019 to Relax the Provisions for Financing between Members of a Corporate Group and the Ceiling of Short-Term Financing by Leasing Enterprises
To provide members of corporate groups with more flexibility in capital deployment and utilization and help SMEs access more financing resources, the FSC relaxed the provisions for financing between members of a corporate group and the ceiling of maximum amount permitted short-term financing by leasing enterprises. Meanwhile, for public companies that have set up audit committees, the formulation and amendment of operation procedures for lending and endorsements/guarantees have to be approved by their audit committees. Likewise, public companies with independent director(s) are required to inform the supervisor(s) and independent director(s) of any material violation related to lending and endorsements/guarantees with written notification. The rectification plans shall also be sent to the independent director(s).