Taiwan - The FSC Reaffirms The Policy Of Separating Financial Businesses From Non-Financial Businesses.
Legal News & Analysis - Asia Pacific - Taiwan - Regulatory & Compliance g
5 December, 2018
On August 8, 2018, the FSC issued an administrative order to implement the control on serving important post concurrently in financial holding company or bank (collectively, the “financial business”) and in non-financial business. The highlights of the administrative order include:
(1) requiring that the financial business establish an internal mechanism to control its responsible persons from serving concurrently posts;
(2) restating that the chairman or general manager of financial business shall not concurrently serve as chairman, general manager or other equivalent post in non-financial business, and that neithr shall the chairman, general manager or a person in an equivalent position of a non-financial business concurrently serves a post of leading nature in a financial business;
(3) should a chairman or general manager of financial business has already served a post in non-financial business concurrently, he/she shall undertake in writing to abide by the aforementioned regulations and to avoid any conflict of interests; and
(4) in the event the vice chairman of financial business has concurrently served a post of leading nature in a non-financial business, such financial business shall immediately revise the authorities and responsibilities of its internal hierarchy and the procedure of document approval such as board meeting proposals; and the same should be included in the internal control check items and continuously monitored by the auditing unit.