Insurance
1.Amendments to Insurance Act
On 3 June 2025, the Legislative Yuan passed the third reading of the amendments to certain provisions of the Insurance Act. As to the key points of the amendments, please refer to Item 1, “Draft Amendment to Certain Provisions of Insurance Act,” in Lexgroup Newsletter (Issue No. 461).
Reported by: David Tsai / Sean Tsai
Corporate
2.Draft amendment to Regulations Governing the Investing Activities of a Financial Holding Company and Regulations Governing Investments in Other Enterprises by Commercial Banks
On 10 June 2025, the Financial Supervisory Commission (FSC) announced the draft amendment to the Regulations Governing the Investing Activities of a Financial Holding Company and the draft amendment of the Regulations Governing Investments in Other Enterprises by Commercial Banks for public consultation. We summarize below:
(1) To ensure the order and stability of financial market and reduce the uncertainty during the consolidation, the ratio of controlling shares which shall be obtained in the first investment of financial holding companies or banks in a financial institution is raised from 10% to 25%;
(2) Tender offers conducted by a financial holding company to invest in public companies shall be made in cash;
(3) The financial holding company shall propose to the audit committee for approval before conducting the first investment; and
(4) The financial holding company which invests in public companies by acquiring shares in way of tender offer shall keep the terms of the tender offer confidential before the competent authority approves.
Reported by: Stacy Lo / Ron Tsai
Electricity
3.Amendment to The Electricity Act
On 28 May 2025, the president announced the amendment to the Electricity Act. We summarize below:
(1) To add the definition of “Specific Electricity Supply Enterprise”, which is included in “Electricity Enterprises.”
(2) To add the definition of “Energy Storage Equipment.”
(3) To remove the restriction that the customers of “Renewable Energy-Based Electricity Retailing Enterprises” are limited to “users” only.
(4) To remove the restrictions that Electricity Transmission and Distribution Enterprises may not concurrently engage in Electricity Generating Enterprise or Electricity Retailing Enterprise business, and may not have cross-shareholdings with each other. The separate accounting system shall be implemented and relevant penalties are added.
(5) To amend the requirement that Electricity Transmission and Distribution Enterprises shall upon approval by the electricity industry competent authority, “establish an open and transparent electricity trading platform after unbundling its generation and grid businesses” as an optional provision.
(6) To add provisions that the electricity industry competent authority may review the operational model and effectiveness of the electricity trading platform as necessary, may establish an independent trading entity or require platform operators to enhance neutral operations, with related penalties provisions added.
(7) To add that Specific Electricity Supply Enterprises supplying power through energy storage equipment or other facilities shall apply for approval and registration with the electricity industry competent authority before installation and to apply for an electricity license after completing the installation.
(8) To include Specific Electricity Supply Enterprises within the scope of those required to obtain an electricity license before commencing operations.
(9) To add provisions requiring those participating in electricity trading platforms as specific electricity suppliers before the implementation of these amendments to obtain an electricity license within one year after the effective date of the amendments; otherwise, they will be prohibited from operating.
(10) To amend that Electricity Transmission and Distribution Enterprises and Public Electricity Retailing Utility shall not cease or suspend operations. The application and approval procedures for the suspension or cessation of operations are consolidated with those of other electricity enterprises and Specific Electricity Supply Enterprises are included.
(11) To include Specific Electricity Supply Enterprises within the scope of those required to report to the competent authority in the event of emergencies and to add related penalties.
(12) To remove the prohibition that Public Electricity Retailing Utility and Renewable Energy-Based Electricity Retailing Enterprises shall not establish major power generation equipment and to amend related penalties.
Reported by: Stacy Lo/ Linda Guo
| 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) |
