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Amendments to the “Regulations Governing the Preparation of Financial Reports by Securities Firms”, the “Regulations Governing the Preparation of Financial Reports by Futures Commission Merchants”, and the “Regulations Governing the Preparation of Financial Reports by Insurance Enterprises”

To ensure that the remuneration of directors, supervisors, and senior executive officers at securities firms, futures commission merchants, and insurance enterprises is set in a more reasonable manner, to improve the quality of such entities’ non-financial disclosures, and to accommodate regulations to current practices and for an appropriate level of supervision, the FSC amended the “Regulations Governing the Preparation of Financial Reports by Securities Firms” and the “Regulations Governing the Preparation of Financial Reports by Futures Commission Merchants” on February 11, 2020, and also amended the “Regulations Governing Preparation of Financial and Operational Reports by Insurance Enterprises” on February 15, 2020. Key points of the amended provisions are as follows:
1.To bring about more transparent disclosure of the remuneration of directors, supervisors, and senior executive officers, and to ensure that such remuneration is set in a reasonable manner: Revised and added additional provisions about disclosing the remuneration paid to individual directors, supervisors, presidents, vice presidents, and advisors under certain conditions. In addition, securities firms, futures commission merchants, and insurance enterprises listed on the Taiwan Stock Exchange (TWSE) or the Taipei Exchange (TPEx) are required to individually disclose the remuneration received by their five most highly compensated executive officers under certain circumstances.
2.To improve the quality of companies’ non-financial disclosures: To strengthen disclosure of information on CPA professional fees, the FSC amended the reporting threshold for the reduction of CPA audit fee from 15% to 10%.
3.To coordinate with a recent amendment to the “Regulations Governing Capital Adequacy of Insurance Companies”, which includes net worth ratio among the supplementary indicators of capital adequacy, insurers are now required to disclose their net worth ratio.
Visitor: 140   Update: 2020-03-06