Menu
Skip to main content block
:::
:::

Press Release

Main Content

FSC amends " Directions for Encouraging the Public to Report Illegal Financial Activities by the Financial Supervisory Commission"

In order to encourage the public to report illegal financial activities, increase the incentive to whistle blow, and to maintain financial market order, the Financial Supervisory Commission (hereafter FSC) has proposed to amend the " Directions for Encouraging the Public to Report Illegal Financial Activities by the Financial Supervisory Commission," and the amendments will be issued shortly. The amended Directions include a total of 14 articles, and the major changes introduced are summarized below:

1. A newly added provision specifies that one of the purposes of the Directions is to maintain financial market order. (Amended Article 1)
2. In order to increase the incentive to whistle blow, the rewards for reporting serious illegal financial activities were increased tenfold, and the rewards for reporting minor illegal financial activities were increased fivefold. (Amended Article 5)
3. With respect to a single case, where both the FSC and a financial peripheral organization offer whistleblower rewards, if the formulas for calculating the awards result in a combined amount that exceeds the maximum reward amount as set out in these Directions, the whistleblower will not receive that part of the reward which exceeds the maximum amount. (Amended Article 7)
4. To prevent the public from making frivolous whistleblower reports, to avoid false claiming of whistleblower rewards, and to confirm the veracity of reported information, a new article provides that the FSC will not grant a reward when a whistleblower report is provided anonymously or by a person who uses a false name. (Amended Article 9)
5. Article 9(1) requires a whistleblower to provide as many items of evidence as possible, and states that the agency which accepts a whistleblower report should consider in certain cases whether it is necessary to supplement the information originally provided (except the name). For this reason, provisions governing when an agency that accepts a whistleblower report should notify the whistleblower to provide supplementary information have been deleted from the amended Directions. (Amended Article 9)
 
Visitor: 172   Update: 2021-01-07