Press Release
Financial Supervisory Commission announces results of 2025 Assessment of Treating Customers Fairly Principles, which featured enhanced evaluation measures and transparency
2025-11-06
The Financial Supervisory Commission (FSC) announced the results of its 2025 Assessment of the Implementation of Treating Customers Fairly (TCF) Principles in the Financial Services Industry, administered by the Securities and Futures Institute (SFI). This year’s assessment featured enhancements to the evaluation measures and increased transparency. Among the major improvements:
Optimization of evaluation measures
1. Online system for submission and scoring: For the first time, an online system was involved that allowed institutions to submit responses electronically. Reviewers could also denote their scores via the platform. This reduces the burden of paper-based documentation, improves efficiency, and ensures scoring traceability.
2. Horizontal evaluation: Each TCF Principle is evaluated by the same reviewer across all institutions to ensure fairness and consistency. Reviewers first examine institutions with stronger past results to identify key evaluation points and enhance the objectivity and differentiation of the assessment.
Enhancement of transparency for evaluation results
1. Score tier disclosure: Each evaluated institution can log into the system to check its total score tier under a four-tier classification. In addition to public disclosure of institutions in the first and second tiers, those in the third and fourth tiers can privately view their respective tiers in the system. This approach increases transparency compared to previous years, during which only the first and second tiers were made public.
2. Detailed indicator benchmarking: For each evaluation indicator—implementation of fair treatment practices (60 points), handling of financial consumer disputes (10 points), board oversight and concrete actions (30 points), and financial examination and routine supervisory performance (30 points)—institutions can review whether their performance meets the industry average. This helps them better understand their performance in each dimension and serves as a reference for future improvement.
In 2025, the FSC assessed 36 banks, 9 large-scale fully licensed securities firms, 19 other fully licensed securities firms, 21 life insurers, and 19 non-life insurers on their performance in implementing the TCF Principles in 2024. To ensure objectivity and transparency and to uphold professionalism, fairness, impartiality, and openness, the SFI convened a working group including the Taiwan Academy of Banking and Finance (TABF) and the Taiwan Insurance Institute (TII) to conduct industry-specific evaluations. The results were submitted to an Evaluation Committee comprising external experts, FSC representatives, and delegates from the Financial Ombudsman Institution for a review. The evaluation process has now been completed.
The assessment results are disclosed in two tiers: the first tier includes the top 25 percent of institutions, and the second tier includes those in the 26th to 50th percentile (see attachment). The FSC continues to recognize outstanding institutions in the top tier. It presented the Best Progress Awards to Taiwan Cooperative Bank, Oriental Securities, KGI Life Insurance, and Tokio Marine Newa Insurance in recognition of their significant improvement since the previous assessment.
Overall, financial institutions have demonstrated improvement and have by and large established mechanisms aligned with the TCF Principles, with boards of directors emphasizing fostering a corporate culture of fair treatment. For the 2025 assessment, the FSC identified “fraud prevention measures and effectiveness” and “soundness of complaint-handling mechanisms” as key focus areas. Institutions have also undertaken relevant improvements, such as strengthening counter services to successfully intercept fraudulent transactions and adopting professional certification systems for complaint management.
The FSC remains committed to refining the TCF Principles assessment mechanism, adjusting evaluation focuses in line with policy directions, and maintaining robust communications with financial institutions. It will continue to promote integrity in business operations and foster a sound corporate governance culture so that customers are treated fairly.
Optimization of evaluation measures
1. Online system for submission and scoring: For the first time, an online system was involved that allowed institutions to submit responses electronically. Reviewers could also denote their scores via the platform. This reduces the burden of paper-based documentation, improves efficiency, and ensures scoring traceability.
2. Horizontal evaluation: Each TCF Principle is evaluated by the same reviewer across all institutions to ensure fairness and consistency. Reviewers first examine institutions with stronger past results to identify key evaluation points and enhance the objectivity and differentiation of the assessment.
Enhancement of transparency for evaluation results
1. Score tier disclosure: Each evaluated institution can log into the system to check its total score tier under a four-tier classification. In addition to public disclosure of institutions in the first and second tiers, those in the third and fourth tiers can privately view their respective tiers in the system. This approach increases transparency compared to previous years, during which only the first and second tiers were made public.
2. Detailed indicator benchmarking: For each evaluation indicator—implementation of fair treatment practices (60 points), handling of financial consumer disputes (10 points), board oversight and concrete actions (30 points), and financial examination and routine supervisory performance (30 points)—institutions can review whether their performance meets the industry average. This helps them better understand their performance in each dimension and serves as a reference for future improvement.
In 2025, the FSC assessed 36 banks, 9 large-scale fully licensed securities firms, 19 other fully licensed securities firms, 21 life insurers, and 19 non-life insurers on their performance in implementing the TCF Principles in 2024. To ensure objectivity and transparency and to uphold professionalism, fairness, impartiality, and openness, the SFI convened a working group including the Taiwan Academy of Banking and Finance (TABF) and the Taiwan Insurance Institute (TII) to conduct industry-specific evaluations. The results were submitted to an Evaluation Committee comprising external experts, FSC representatives, and delegates from the Financial Ombudsman Institution for a review. The evaluation process has now been completed.
The assessment results are disclosed in two tiers: the first tier includes the top 25 percent of institutions, and the second tier includes those in the 26th to 50th percentile (see attachment). The FSC continues to recognize outstanding institutions in the top tier. It presented the Best Progress Awards to Taiwan Cooperative Bank, Oriental Securities, KGI Life Insurance, and Tokio Marine Newa Insurance in recognition of their significant improvement since the previous assessment.
Overall, financial institutions have demonstrated improvement and have by and large established mechanisms aligned with the TCF Principles, with boards of directors emphasizing fostering a corporate culture of fair treatment. For the 2025 assessment, the FSC identified “fraud prevention measures and effectiveness” and “soundness of complaint-handling mechanisms” as key focus areas. Institutions have also undertaken relevant improvements, such as strengthening counter services to successfully intercept fraudulent transactions and adopting professional certification systems for complaint management.
The FSC remains committed to refining the TCF Principles assessment mechanism, adjusting evaluation focuses in line with policy directions, and maintaining robust communications with financial institutions. It will continue to promote integrity in business operations and foster a sound corporate governance culture so that customers are treated fairly.
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