Labor
1.Interpretive ruling on the Gender Equality in Employment Act
On January 6, 2025, the Ministry of Labor issued an interpretive ruling on the Gender Equality in Employment Act (“GEEA”). We summarize as follows:
(1) If an employee is sexually harassed by an unspecified individual in a public place or a location accessible to the public while performing their duties, matters related to investigation, mediation, and punishment of the incident should be handled in accordance with the Sexual Harassment Prevention Act (“SHPA”). However, once the employer becomes aware of the harassment, the employer shall still, in accordance with the GEEA, take immediate and effective corrective and remedial measures.
(2) The following 12 examples are provided to illustrate situations in which a worker, while performing their duties in a public place, is subjected to sexual harassment by an unspecified individual. In these cases, investigation, mediation, and punishment are governed by the Sexual Harassment Prevention Act:
(a) Employees of public transportation companies, while performing their duties on public transport vehicles or at stations where such vehicles are parked or awaited, being subjected to sexual harassment by passengers.
(b) Employees of government agencies (e.g., household registration offices) providing services to the public, being subjected to sexual harassment by individuals visiting for administrative services while carrying out their duties.
(c) Healthcare personnel, while performing their duties in a medical facility, being subjected to sexual harassment by patients or their family members.
(d) Home care workers, while providing services in a client’s residence, being subjected to sexual harassment by the client or their family members.
(e) Employees of care, welfare, or placement institutions, while carrying out their duties, being subjected to sexual harassment by care recipients or residents of the institution.
(f) Community or building managers, while on duty in the community or building management office, being subjected to sexual harassment by residents, delivery personnel, or visitors (who do not share a cooperative working or business relationship).
(g) Employees in shops, restaurants, department stores, cinemas, hotels, malls, banks, etc., while performing their duties, being subjected to sexual harassment by customers.
(h) Real estate agents, while showing properties for sale, being subjected to sexual harassment by prospective buyers.
(i) Automobile sales representatives, while performing their duties during test drives, being subjected to sexual harassment by customers.
(j) Employees assigned to attend professional training, being subjected to sexual harassment by the instructor or by trainees from other organizations during the training.
(k) Telephone customer service representatives, while performing their duties, being subjected to sexual harassment by callers.
(l) Social media editors, while working online, being subjected to sexual harassment by users leaving comments.
Reported by: David Tsai / Alex Li
Financial
2.Amendment to Directions Governing Banking Enterprises for Operating Foreign Exchange Business
On 15 January 2025, the Central Bank announced an amendment to Point 10 of the “Directions Governing Banking Enterprises for Operating Foreign Exchange Business”, relaxing the restrictions on authorized banks approved to engage in foreign currency non-discretionary trust funds investing in foreign-currency denominated securities. Under the amendment, when the trustor is also the beneficiary, the authorized bank may accept the trustor’s beneficial rights in the foreign currency non-discretionary trust funds as collateral for a pledge to secure New Taiwan Dollar loans, which are no longer restricted to foreign currency loans.
Reported by: Angela Lin / Sunny Lan
Securities
3.Draft Ruling Regarding New Types of Securities Under Article 6 and Article 22of the Securities and Exchange Act
On 15 January 2025, the Financial Supervisory Commission (FSC) announced a draft ruling to facilitate the issuance of sustainability bonds by the National Housing and Urban Regeneration Center (HURC). We summarize below:
(1) Administrative corporations bonds are approved as a kind of securities under the Securities and Exchange Act (Act).
(2) HURC is exempted from the requirement under Article 22, Paragraph 1 of the Act to file for effective registration with the competent authority for the issuance of administrative corporations bonds.
(3) The issuance of administrative corporations bonds by HURC is exempted from the preparation and delivery of prospectus, the information disclosure requirements under Article 36 of the Act, and the underwriting requirements under Section 2, Chapter 3 of the Act.
Reported by: Jeffrey Liu / Eden Hsieh
Financial
4.Regulations Governing the Promotion of Other Business Products or the Provision of Related Services in Cooperation with Financial Institutions
On 20 January 2025, the FSC announced the “Regulations Governing the Promotion of Other Business Products or the Provision of Related Services in Cooperation with Financial Institutions”, which consolidate the contents of the rulings of the Ministry of Finance and the FSC, and further expand the parties and service items allowed for cooperation and promotion among financial institutions. We summarize the new amendments below:
(1) To add futures commission merchants (including futures trading assistances) and insurance brokerage firms as institutions that may apply for cooperative promotion of other business products or provision of related services, and to stipulate the criteria of “soundness of financial condition, business and internal control” for both of them.
(2) To add that insurance brokerage firms may only apply for cooperation in the promotion of insurance claims trust.
(3) To add the criteria to be met by “those who only cooperate in the promotion of insurance claims trust”.
(4) To add “account opening for futures brokerage or futures trading assistance business” and “collection and accepting applications for futures brokerage-related business” as items that can be co-promoted and to stipulate the relevant qualification requirements.
Reported by: Angela Lin / Joe Liao
Securities
5.Draft Amendments to Securities Firm Related Regulations
On 24 January 2025, the FSC announced the proposed addition of the “business of securities dealers trading in specific foreign bonds” to the relevant businesses approved by the Competent Authorities under Subparagraph 2, Article 15 of the Securities and Exchange Act, to allow a securities dealer to engage in proprietary trading in foreign bonds issued by local or foreign persons outside of Taiwan, and the minimum denomination of the transaction will not be sufficient to meet the minimum requirements set forth in the issuance regulations of the bond issuer. FSC also announced that the “Standards Governing the Establishment of Securities Firms”, “Regulations Governing Securities Firms” and “Regulations Governing Responsible Persons and Associated Persons of Securities Firms” will be amended accordingly to regulate the subject new business.
Reported by: Jeffrey Liu / Eva Chiu
SITE/SICE
6.Announcement of “Template of Trust Deed of Securities Investment Trust Funds”
On 17 January 2025, the Securities Investment Trust and Consulting Association (SITCA) issued a ruling to announce updates of the following template securities investment trust deeds: Template for Overseas Equity Fund Securities Investment Trust Deed, Template for Overseas Equity Fund Securities Investment Trust Deed (Applicable Only to Multi-Currency Foreign Currency-Denominated Funds), Template for Overseas Equity Fund Securities Investment Trust Deed (Applicable Only to Multi-Currency Funds Including TWD), Template for Capital-Protected Fund Securities Investment Trust Deed, Template for Domestic Open-End Equity Fund Securities Investment Trust Deed, Template for Open-End Balanced Fund Securities Investment Trust Deed, Template for Open-End Portfolio Fund (Including Funds Investing in Offshore Funds) Securities Investment Trust Deed, Template for Open-End Money Market Fund Securities Investment Trust Deed, and Template for Open-End Bond Fund Securities Investment Trust Deed. The key point is to ensure that investors can promptly obtain information regarding the termination and liquidation of funds approved by the regulatory authority. The management companies are required, upon receiving the approval for the termination of a securities investment trust deed, to disclose fund liquidation information through trading system notifications, website announcements, or other means to inform the investors.
Reported by: Jeffrey Liu / Winnie Su
| Editors: Mike Lu (Partner) Stacy Lo (Partner) Jeffrey Liu (Partner) Kang-Shen Liu (Partner) David Tsai (Partner) Angela Lin (Partner) Paul Hsu (Partner) Alex Li (Partner) | Counselors: Echo Yeh Sue Su Jolene Wang (Lexcel Partners IP Firm) |