Press Release
FSC announces the 2025 financial examination focuses
2024-12-19
To implement the principle of maintaining transparency of examination procedures set out in the "Principles for Effective Financial Examination," the Financial Examination Bureau of the Financial Supervisory Commission(hereinafter referred to as “FSC”) has announced its 2025 financial examination focuses to help financial institutions develop an early understanding of the FSC's key focal points in its supervisory work and financial examinations, as well as establish a concept of ethical business management. Developing this understanding will hopefully enable financial institutions to improve their self-regulation and contribute to their conduct of sound operations.
The FSC's 2025 financial examination focuses have been developed with reference to: (1) the recent development of domestic and international political and economic conditions; (2) external stakeholders' concerns; (3) the key financial regulations and supervisory focuses issued by the FSC in 2024; (4) the key supervisory expectations of the three sector bureaus, and (5) matters that must be scrutinized and identified by the FEB in 2024 examinations. The FSC selected a total of 109 examination focuses for different sectors of the financial industry.
The FSC will prioritize the following financial examination focuses in 2025: "anti-fraud measures," "risk management of real estate lending business," "financial consumer protection (including personal data protection/ protection of the rights of persons with disabilities/ control of the sales practices of wealth management)," " corporate governance," and "information security". Additionally, in response to the significant growth in the number of users and payment transactions handled by specialized electronic payment institutions in recent years, the FSC will expand its supervision scope to include the financial and operational status of these institutions, using the same supervisory approach adopted with other financial institutions. The main revised contents of the 2025 financial examination focuses are described as follows:
1.The External Stakeholders' Concerns:
(1) To prevent and curb fraud involving the misuse of financial services, protect the public interest, and spur financial institutions to focus increased attention on fraud prevention, the FSC has added "anti-fraud measures" to the list of its financial examination focuses for domestic banks, credit cooperatives, specialized electronic payment institutions, and Virtual Asset Service Providers (VASPs) respectively. This has been designated as a stand-alone examination theme.
(2) To better understand the implementation of real estate credit risk management, the FSC has added "evaluating the rationality of using developer working capital for construction purposes "and "monitoring the purpose and flow of funds for unsold housing unit loans " as new financial examination focuses for domestic banks, credit cooperatives, and bills finance companies.
(3) To promote self-regulation among securities investment trust companies and enhance the oversight of influencer marketing activities to protect investors, a new financial examination focus has been added for securities investment trust companies regarding the execution of ETF advertising and marketing practices.
2.The FSC’s Supervision Focuses: To strengthen the protection of consumer interests, the FSC has added "establishing mechanisms for handling complaints and resolving transaction disputes" as a new financial examination focus for specialized electronic payment institutions and "mechanisms for reviewing the listing and delisting of virtual assets" as a new financial examination focus for Virtual Asset Service Providers (VASPs), respectively, and has added "the execution of internal operational processes and systems outsourced to third parties" as new financial examination focuses for domestic and foreign banks’ branches in Taiwan and specialized electronic payment institutions. In addition, to improve information security, the FSC has added "Application Programming Interface (API) security management" as audit focuses for credit cooperatives as well as life and non-life insurance companies and has added "implementation of resilience guidelines for financial institutions’ information operations" as a new financial examination focus for domestic banks.
3.New Examination Items for various Financial Industries: These mainly include procedures for identifying and reviewing professional investor clients; identity verification and security design for electronic signature mechanisms; implementation of compliance systems; and insurance industry risk management mechanisms and capital adequacy calculations.
By issuing the 2025 financial examination focuses, the FSC hopes to help external stakeholders better understand examination priorities and to promote the sound operations of financial institutions.
Please direct any questions or comments to: FSC Feedback Mail.
The FSC's 2025 financial examination focuses have been developed with reference to: (1) the recent development of domestic and international political and economic conditions; (2) external stakeholders' concerns; (3) the key financial regulations and supervisory focuses issued by the FSC in 2024; (4) the key supervisory expectations of the three sector bureaus, and (5) matters that must be scrutinized and identified by the FEB in 2024 examinations. The FSC selected a total of 109 examination focuses for different sectors of the financial industry.
The FSC will prioritize the following financial examination focuses in 2025: "anti-fraud measures," "risk management of real estate lending business," "financial consumer protection (including personal data protection/ protection of the rights of persons with disabilities/ control of the sales practices of wealth management)," " corporate governance," and "information security". Additionally, in response to the significant growth in the number of users and payment transactions handled by specialized electronic payment institutions in recent years, the FSC will expand its supervision scope to include the financial and operational status of these institutions, using the same supervisory approach adopted with other financial institutions. The main revised contents of the 2025 financial examination focuses are described as follows:
1.The External Stakeholders' Concerns:
(1) To prevent and curb fraud involving the misuse of financial services, protect the public interest, and spur financial institutions to focus increased attention on fraud prevention, the FSC has added "anti-fraud measures" to the list of its financial examination focuses for domestic banks, credit cooperatives, specialized electronic payment institutions, and Virtual Asset Service Providers (VASPs) respectively. This has been designated as a stand-alone examination theme.
(2) To better understand the implementation of real estate credit risk management, the FSC has added "evaluating the rationality of using developer working capital for construction purposes "and "monitoring the purpose and flow of funds for unsold housing unit loans " as new financial examination focuses for domestic banks, credit cooperatives, and bills finance companies.
(3) To promote self-regulation among securities investment trust companies and enhance the oversight of influencer marketing activities to protect investors, a new financial examination focus has been added for securities investment trust companies regarding the execution of ETF advertising and marketing practices.
2.The FSC’s Supervision Focuses: To strengthen the protection of consumer interests, the FSC has added "establishing mechanisms for handling complaints and resolving transaction disputes" as a new financial examination focus for specialized electronic payment institutions and "mechanisms for reviewing the listing and delisting of virtual assets" as a new financial examination focus for Virtual Asset Service Providers (VASPs), respectively, and has added "the execution of internal operational processes and systems outsourced to third parties" as new financial examination focuses for domestic and foreign banks’ branches in Taiwan and specialized electronic payment institutions. In addition, to improve information security, the FSC has added "Application Programming Interface (API) security management" as audit focuses for credit cooperatives as well as life and non-life insurance companies and has added "implementation of resilience guidelines for financial institutions’ information operations" as a new financial examination focus for domestic banks.
3.New Examination Items for various Financial Industries: These mainly include procedures for identifying and reviewing professional investor clients; identity verification and security design for electronic signature mechanisms; implementation of compliance systems; and insurance industry risk management mechanisms and capital adequacy calculations.
By issuing the 2025 financial examination focuses, the FSC hopes to help external stakeholders better understand examination priorities and to promote the sound operations of financial institutions.
Please direct any questions or comments to: FSC Feedback Mail.
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- Update: 2024-12-19