Important Measures
Important Measure September 2020
2021-01-07
1.FSC Amends the Scope of Work Experience Countable Toward the 2 Years of Previous Experience Required for a Fund Manager to be Eligible to Concurrently Manage or be an Assistant Manager of Another Fund
On 9 September 2020, the FSC issued an order relaxing the original requirement that a fund manager must have 2 years of previous work experience managing the same type of fund (e.g. actively managed equity fund, actively managed debt fund, or passively managed fund) to be eligible to concurrently manage or be an assistant manager of another fund. Under the relaxed requirement, time spent as a discretionary investment manager of a sole-manager investment account of which the basic investment policy and investment scope as set out in the discretionary investment services agreement or the actual asset allocations carried on the books are the same as those of the same type of fund, may be counted toward the required experience managing the same type of fund. The FSC order furthermore specifies that if time spent as a discretionary investment manager is counted toward the 2-year experience requirement, the length of time actually spent as a manager of the same type of fund or as an assistant manager of a fund with the same asset type must still be at least 1 year.
2.FSC Issued Corporate Governance 3.0 -Sustainable Development Roadmap, to Strengthen the Competitiveness of Taiwan's Capital Markets
To continue consolidating corporate governance in Taiwan and promote sustainable corporate development, the FSC issued Corporate Governance 3.0 -Sustainable Development Roadmap on 25 August 2020. Among the key measures to be implemented under the Roadmap are the following: requiring that independent directors make up no less than one-third of the directors, and that half or more of the independent directors serve no more than three consecutive terms; strengthening the disclosure requirements for sustainability reporting based on international guidelines (including those of the Task Force on Climate-Related Financial Disclosures [TCFD] and Sustainability Accounting Standards Board [SASB]); expanding the scope of companies required to prepare and file sustainability reports, and expanding the applicable scope for requiring third-party assurance for sustainability reporting; phasing in requirements that TSWE- and TPEx-listed companies publish their unaudited financial information, and publish their annual financial reports earlier after the end of a fiscal year; studying measures to strengthen the operational impartiality of companies that handle their own shareholder services, and enhancing the transparency of e-voting results; lowering the daily maximum number of TWSE- and TPEx-listed companies that may hold annual general shareholder's meetings; expanding the scope of stewardship principles and practices; establishing a negotiation mechanism between international proxy advisors and listed companies; expanding the industrial chain of stewardship in Taiwan; establishing a sustainability market to promote sustainable development-related products such as sustainable bonds, social responsibility bonds, and green bonds.
The Corporate Governance 3.0 -Sustainable Development Roadmap aims to drive positive development and interaction between enterprises, investors, and stakeholders, create a sound environmental, social and governance (ESG) ecosystem, and strengthen the global competitiveness of Taiwan's capital markets, through approaches including strengthening the duties and functions of boards of directors, enhancing information transparency, strengthening communication with stakeholders, encouraging stewardship and deepening a corporate culture of sustainable governance, and providing diversified products.
3.Relaxation of the Standards Governing Eligibility of Securities for Margin Purchase and Short Sale
To invigorate trading on the TPEx market and provide investors with greater flexibility in trading TPEx-listed stocks, the FSC on 5 August 2020 amended Article 2 of the Standards Governing Eligibility of Securities for Margin Purchase and Short Sale. The amendment relaxes the eligibility standards for margin purchase and short sale of TPEx-listed companies' shares by exempting companies with paid-in capital of NT$600 million from the minimum profitability standards regarding operating income and net income before tax.
On 9 September 2020, the FSC issued an order relaxing the original requirement that a fund manager must have 2 years of previous work experience managing the same type of fund (e.g. actively managed equity fund, actively managed debt fund, or passively managed fund) to be eligible to concurrently manage or be an assistant manager of another fund. Under the relaxed requirement, time spent as a discretionary investment manager of a sole-manager investment account of which the basic investment policy and investment scope as set out in the discretionary investment services agreement or the actual asset allocations carried on the books are the same as those of the same type of fund, may be counted toward the required experience managing the same type of fund. The FSC order furthermore specifies that if time spent as a discretionary investment manager is counted toward the 2-year experience requirement, the length of time actually spent as a manager of the same type of fund or as an assistant manager of a fund with the same asset type must still be at least 1 year.
2.FSC Issued Corporate Governance 3.0 -Sustainable Development Roadmap, to Strengthen the Competitiveness of Taiwan's Capital Markets
To continue consolidating corporate governance in Taiwan and promote sustainable corporate development, the FSC issued Corporate Governance 3.0 -Sustainable Development Roadmap on 25 August 2020. Among the key measures to be implemented under the Roadmap are the following: requiring that independent directors make up no less than one-third of the directors, and that half or more of the independent directors serve no more than three consecutive terms; strengthening the disclosure requirements for sustainability reporting based on international guidelines (including those of the Task Force on Climate-Related Financial Disclosures [TCFD] and Sustainability Accounting Standards Board [SASB]); expanding the scope of companies required to prepare and file sustainability reports, and expanding the applicable scope for requiring third-party assurance for sustainability reporting; phasing in requirements that TSWE- and TPEx-listed companies publish their unaudited financial information, and publish their annual financial reports earlier after the end of a fiscal year; studying measures to strengthen the operational impartiality of companies that handle their own shareholder services, and enhancing the transparency of e-voting results; lowering the daily maximum number of TWSE- and TPEx-listed companies that may hold annual general shareholder's meetings; expanding the scope of stewardship principles and practices; establishing a negotiation mechanism between international proxy advisors and listed companies; expanding the industrial chain of stewardship in Taiwan; establishing a sustainability market to promote sustainable development-related products such as sustainable bonds, social responsibility bonds, and green bonds.
The Corporate Governance 3.0 -Sustainable Development Roadmap aims to drive positive development and interaction between enterprises, investors, and stakeholders, create a sound environmental, social and governance (ESG) ecosystem, and strengthen the global competitiveness of Taiwan's capital markets, through approaches including strengthening the duties and functions of boards of directors, enhancing information transparency, strengthening communication with stakeholders, encouraging stewardship and deepening a corporate culture of sustainable governance, and providing diversified products.
3.Relaxation of the Standards Governing Eligibility of Securities for Margin Purchase and Short Sale
To invigorate trading on the TPEx market and provide investors with greater flexibility in trading TPEx-listed stocks, the FSC on 5 August 2020 amended Article 2 of the Standards Governing Eligibility of Securities for Margin Purchase and Short Sale. The amendment relaxes the eligibility standards for margin purchase and short sale of TPEx-listed companies' shares by exempting companies with paid-in capital of NT$600 million from the minimum profitability standards regarding operating income and net income before tax.
- Visitor： 1229
- Update： 2021-01-07
