1.Amendments to the “Securities and Exchange Act”
In order to help enterprises retain talent, carry out corporate governance and strengthen regulatory compliance, appropriately raise maximum penalty and improve regulatory supervision of securities firms, securities service providers and related organizations, the amendments were passed by the Legislative Yuan on March 26, 2019 and promulgated by the President on April 17, 2019. The key points of the amendments were as follows:
(1)The period of transferring a company’s buyback shares to its employees and equity conversion in coordination with the issuance of corporate bonds with warrants, convertible corporate bonds, share subscription warrants, etc., is extended from 3 years to 5 years.
(2)Provisions are added stipulating that primary TWSE-listed, primary TPEX-listed companies and foreign companies in emerging stock market are not allowed to impede, refuse, or evade the actions of the independent directors in the performance of their duties and that these companies are required to establish a remuneration committee. Meanwhile, the penalties for violation of aforementioned regulations and the regulations governing the exercise of powers by audit committees and remuneration committee were promulgated.
(3)The supervisory measures for “improvement within a specified deadline” to issuers, securities firms and securities service enterprises and “other necessary actions related to business or operation” to securities firms and securities service enterprises were promulgated.
(4)The maximum fine was raised from NT$2.4 million to NT$4.8 million and the new regulation that fines may be imposed on securities firms, securities service enterprises and related institutions was promulgated.
2.Amendments to the “Regulations Governing Responsible Persons and Associated Persons of Futures Commission Merchants” and the “Regulations Governing Managed Futures Enterprises”
To harmonize the certification regulations of the securities and futures industry and strengthen the certification regulations of the futures industry, the FSC promulgated amendments to the aforementioned 2 Regulations on May 15, 2019. It deleted the regulations which disqualified the Futures Associated Persons and the Futures Trading Analysts if they do not register within 5 years after they obtain the qualification, or have not worked in such a post for 5 years. In the future, such personnel can register as associated persons once they attend the current 9-hour general pre-employment training course held by the Securities and Futures Institute as well as an additional advanced 3-hour pre-employment training course, and pass the exams. The amendments help the futures industry recruit talents.
3.FSC Successfully Elected as IFIAR Board Member
The International Forum of Independent Audit Regulators (IFIAR) is the most influential organization of independent audit regulators in the world, established with the objective of sharing practical experience related to audit supervision and improve audit quality globally. It comprises members from all over the world, including audit regulators of the United Kingdom, the United States, Japan, and other major countries. The FSC joined the IFIAR in 2008 and is one of its charter members. To strengthen its participation in global audit regulatory activities, the FSC made great efforts to become a member of the IFIAR Board and was successfully elected as a Board Member during the 2019 IFIAR Plenary Meeting (30 April - 2 May, 2019). This is the first time that the FSC has the honor to participate in decision-making in the management and operation of a major international financial organization and will greatly enhance Taiwan''s influence and visibility in international financial supervision affairs.