Climate Change
1.Announcement of Carbon Fee Rates
The Ministry of Environment announced the rates of carbon fees on 21 October 2024 as detailed below, which will take effect on 1 January 2025:
(1) Standard Carbon Fee Rate: NTD 300 per ton of carbon dioxide equivalent (tCO2e).
(2) Preferential Carbon Fee Rate A: NTD 50 per ton of carbon dioxide equivalent (tCO2e) for entities complying with the industry-specific designated reduction rate under the “Designated Targets for Reduction of Greenhouse Gas by Entities Subject to Carbon Fee”.
(3) Preferential Carbon Fee Rate B: NTD 100 per ton of carbon dioxide equivalent (tCO2e) for entities complying with the technology benchmark designated reduction rate under the “Designated Targets for Reduction of Greenhouse Gas by Entities Subject to Carbon Fee”.
According to Article 4 of the Regulations Governing the Collection of Carbon Fees, entities subject to the carbon fee will be required to calculate and pay the carbon fees in May 2026 based on their total greenhouse gas emissions for the entire year of 2025.
Reported by: Stacy Lo / Mandy Wu
Counter-Terrorism Financing
2.Announce the Draft Amendment to Counter-Terrorism Financing Act
The Ministry of Justice announced the draft amendment to “Counter-Terrorism Financing Act.” on 22 October 2024. We summarize below:
(1) It is newly added to include provisions to prevent “proliferation of weapons of mass destruction” and “proliferation financing” and their definitions.
(2) New definitions are added for acts of financing terrorism and the scope of terrorism.
(3) The criteria for designating sanctions against suspected domestic terrorists are amended
(4) Additional circumstances involving offenses related to the proliferation financing or other necessary situations are included as grounds for designating sanctions.
(5) If a sanctioned party dies or is dissolved, the competent authority may remove it from the list with the announcement.
(6) The responsibilities of the Anti-Terrorism Financing Review Committee are added, with the members of the Ministry of Transportation and the Ministry of Finance.
(7) For those subject to targeted financial sanctions, it is specified that financial services must not be provided, and other prohibited actions are revised.
(8) Specific circumstances under which those subject to targeted financial sanctions may retain or apply for permission to use assets are revised.
(9) It is stipulated that any unfinished transactions involving assets frozen due to targeted financial sanctions must still be reported.
(10) Transactions suspected of involving offenses related to the proliferation financing are included in the reporting obligations, with an exemption from confidentiality obligations for personnel who are aware of the related reporting content due to business relationships.
(11) The subjective element for offenses related to financing terrorism is revised from “knowing” to “general intent,” and new penalties for self-funding activities are included, and attempts to finance terrorism are also punishable.
(12) The scope of the “Foreign Terrorist Fighters Clause” is revised to include organizing training and merely participating in or receiving terrorist activity training.
(13) New regulations prohibit from engaging in trade with individuals or entities sanctioned by the United Nations Security Council and controlled or prohibited by the competent authority, with corresponding criminal liabilities defined.
(14) New types of proliferation financing together with corresponding criminal liabilities are added.
(15) The penalty range for financial institutions or designated nonfinancial enterprises or persons violating obligations is revised.
Reported by: David Tsai / Joe Liao
Anti-Money Laundering
3.Draft Regulations on Information Reporting, Updating and Disclosure of Trust Position for Non-trust Enterprise Trustees Under Paragraph 6, Article 11 of the Money Laundering Control Act
the Ministry of Justice announced the draft “Regulations on Information Reporting, Updating and Disclosure of Trust Position for Non-trust Enterprise Trustees Under Paragraph 6, Article 11 of the Money Laundering Control Act” for public consultation on 29 October 2024,. We summarize below:
(1) The Regulations apply to designated non-financial enterprises or persons or other legal persons serving as trustees.
(2) To stipulate the scope and method of information reporting and updating for the non-trust enterprise trustees, and the report and update shall be completed within thirty (30) days of establishing the trust or information changes.
(3) To stipulate when the non-trust enterprise trustees shall disclose their trust position, and the non-trust enterprise trustees shall disclose it in the designated manner within five (5) business days.
Reported by: Stacy Lo/ Zoe Chen
Financials
4.Key Points for Pilot Business Application of Financial Industry
The Financial Supervisory Commission announced the “Key Points for Pilot Business Applications of Financial Industry” to make the pilot business application mechanisms for the banking, securities, futures, and insurance sectors consistent, and expand the applicable scope on 29 October 2024. We summarize below:
(1) To expand the applicable financial sectors, including banks, credit cooperatives, bill finance companies, credit card companies, trust companies, electronic payment institutions, securities firms, securities investment trust enterprises, securities financing business, securities investment consulting enterprises, futures commission merchants, leverage transaction merchants, futures trust enterprises, futures brokerage business, futures advisory businesses, insurance companies, insurance cooperatives, insurance agents, and insurance brokers.
(2) To expand the scope of business pilot applications to include business items that are not yet opened under “administrative rules, interpretations, self-regulatory rules of financial industry associations, or regulations of peripheral entities.” For business items prohibited under “laws and regulatory orders,” applications shall be made in accordance with the “Financial Technology Development and Innovative Experimentation Act” for innovative experimentation.
(3) To add a priority review mechanism for financial inclusion related cases. If the pilot business may facilitate the promotion and implementation of financial inclusion, the FSC will prioritize acceptance and review of the application.
Reported by: Stacy Lo / Eva Chiu
SITE/SICE
5.Amendment to Regulations Governing Securities Investment Consulting Enterprises
The Financial Supervisory Commission announced the amendment to Regulations Governing Securities Investment Consulting Enterprises on 25 October 2024. The key points are substantially the same as those summarized in the draft ruling (please refer to Lexgroup Newsletter (Issue No. 444)), but there are some further major amendments below:
(1) To relax that bank capital adequacy may be adopted as a financial condition for banks which concurrently engages in trust businesses to provide investment consulting service for foreign securities service and robo-advisor service.
(2) In respect of providing robo-advisor service, to reduce the business operating bond from NT$10 million to NT$5 million. Also, it is amended that there will be one-year grace period from the amendment, provided that an extension may be filed with the FSC with legitimate reason before the expiry of such grace period.
Reported by: Jeffrey Liu / Amy Su
6.Announcement on Relevant Provisions Regarding Private Placement of Offshore Funds without the Nature of Securities Investment Trust Fund
The Financial Supervisory Commission issued a new official letter on 25 October 2024 to update its previous official letter on private placement of offshore funds without the nature of securities investment trust fund for SITEs and SICEs, which was released on 31 May 2021. Please refer to Item 6 of the Lexgroup Newsletter (Issue No. 446) for the details of the updates.
Reported by: Jeffrey Liu / Jason Su
7.Draft Ruling Regarding New Types of Business for SITE/SICE Under Article 3.3.3 of the Securities Investment Trust and Consulting Act
The Financial Supervisory Commission announced a draft ruling on 17 October 2024 in relation to requirements for the securities investment trust enterprises (SITEs) meeting certain financial criteria without any sanction record to (i) engage in the management of private equity funds, and (ii) introduce professional institutional investors and high-asset customers to engage in the investment, and (iii) provide relevant services. The major amendments to the existing FSC ruling (i.e. Ref. No. Jin-Kuan-Chen-Tou-Tz-10600091131) are summarized below:
(1) To Specify the definition of professional institutional investors and high-asset customers and the total amount of high-asset customers shall not exceed 99; and
(2) In respect of introducing professional institutional investors and high-asset customers to engage in the investment in private equity funds and provide relevant services, a SITE shall enter into an agreement with private equity funds institution or its designated institution, and shall state that no other domestic institutions can be further engaged. The SITE may also enter into an agreement with trust enterprises which meet specific requirements to introduce qualified clients to invest in private equity funds via money trust.
Reported by: Jeffrey Liu / Amy Su
不動產
8.Amendments to Urban Renewal Act
The Legislative Yuan passed the third reading of amendment to Article 65 of the Urban Renewal Act on 25 October 2024. In addition to “buildings completely constructed before the implementation of building floor and area ratio control,” the amendment adds “buildings for which construction permits were applied prior to the implementation of building floor and area ratio control” may also use the original floor and area ratio after urban renewal, exempt from the current floor and area ratio restrictions.
Reported by: Kangshen Liu / Alex Li
Insurance
9.Interpretation Order to Article 15 Paragraph 5 proviso of Regulations Governing the Supervision of Insurance Solicitors
On 23 October 2024, the Financial Supervisory Commission issued an interpretation order to Proviso, Paragraph 5, Article 15 of “Regulations Governing the Supervision of Insurance Solicitors “. We summarize below:
(1) If the insurance industry conducts compulsory automobile liability insurance business through the Compulsory Automobile Liability Insurance Auxiliary System established by the Taiwan Insurance Institute, and the renewal terms of a residential fire insurance has been agreed upon with no change in the amount of insurance and the conditions of coverage, and if the electronic offer letter has already stated the name of the solicitor and also the registration card number, and a mechanism has been set up for the management of solicitors to confirm details of solicitation, the insurance solicitors shall be deemed to have signed the offer letter in accordance with Paragraph 5, Article 15 of the Regulations Governing the Supervision of Insurance Solicitors.
(2) If the company to which an insurance solicitor belongs to authorizes its solicitor to sign the offer document with an account number and password, and the offer document has already stated the solicitor’s name and registration card number, and the internal operation regulations have been formulated in accordance with the relevant control measures which have been reported to the competent authority by the Insurance Businesses Association for record check, the insurance solicitors shall be deemed to have signed the offer letter in accordance with Paragraph 5, Article 15 of the Regulations Governing the Supervision of Insurance Solicitors.
Reported by: David Tsai / Scott Chuang
| Editors: Mike Lu (Partner) Stacy Lo (Partner) Jeffrey Liu (Partner) Kang-Shen Liu (Partner) David Tsai (Partner) Angela Lin (Partner) Paul Hsu (Partner) | Counselors: Echo Yeh Sue Su Jolene Wang (Lexcel Partners IP) |