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Important Measures

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Important Measure April 2022

1.  The Securities and Futures Firms May Conduct Information Sharing to Provide Customer Convenience and Increase Operational Efficiency (28 April 2022)
To respond to fintech development, provide customers with greater convenience, bring about better risk control by financial institutions, and spur increased cooperation among financial institutions, the Financial Supervisory Commission (FSC) on 23 December 2021 adopted and implemented the Guidelines for Information Sharing Among Financial Institutions (hereinafter, the Guidelines), setting out the information sharing mechanism among financial institutions. In accordance with information security principles, the Guidelines encourage the legal and reasonable use of customer information, facilitate customer trading, reduce institutions’ increase of operational costs resulting from duplication and protection of customer information, and enhance efficiency and synergistic benefits.
Considering that securities and futures regulations require that customer information be kept confidential and not disclosed, and to provide regulatory clarity for securities and futures business to share information with other financial institutions for making reasonable use of customer information and protect the rights and interests of investors, the FSC announced an order on 20 January 2022 to allow these firms to conduct information sharing with stipulation of relevant management rules and application procedures. To conduct information sharing among financial institutions, a securities and futures business must establish internal control rules with approval by the board of directors. Regarding the scope and procedure of information sharing, the securities and futures business must obtain customers’ prior consent and post its privacy policies on the website, and carry out in accordance with the Personal Data Protection Act and the Guidelines, except as otherwise allowed by other legislation. To share information with other institutions that are not part of the same financial group, a securities and futures business must apply its first case to the FSC for approval. The firm’s cases are to be controlled in accordance with its sharing model after the approval of the first case. For models not exceeding the scope of all those already approved by the FSC, the firm need only to file to the Taiwan Securities Association or the Chinese National Futures Association for recordation.
The sharing and reasonable use of information is of core importance to digital development. The FSC will continue to observe the types and benefits of securities and futures business’ sharing of customer information in order to accommodate the need for cross-sector, cross-disciplinary and diversified financial scenes development of financial technologies, create data value, enhance the competitiveness of Taiwan's securities and futures industry, and protect the rights and interests of investors.
Visitor: 478   Update: 2022-07-07