Public Company
1.Amendment to Regulations Governing the Acquisition and Disposal of Assets by Public Companies
On 24 July 2025, the Financial Supervisory Commission (FSC) amended the Regulations Governing Acquisition and Disposal of Assets by Public Companies. We summarize below:
(1) Relaxation of the announcement and report standard for the acquisition or disposal of equipment for business use from a non-affiliated party by a company with a paid-in capital of NT$50 billion;
(2) Relaxation of the announcement and report standard for the acquisition or disposal of government bonds, corporate bonds, financial bonds not involving equity (excluding subordinated bonds) from a non-affiliated party by a company with a paid-in capital of NT$50 billion; and
(3) In aligning with the new provisions regarding reporting and disclosure standards for public companies with paid-in capital of NT$50 billion or more, and the transactions amounting to 5% or more of the company’s paid-in capital, establishing the method of how to calculate 5% of the paid-in capital and NT$50 billion in paid-in capital for companies whose shares have no par value or a par value other than NT$10 per share.
Reported by: Mike Lu / Linda Guo
Securities
2.Amendments to Standards Governing the Establishment of Securities Firms, Regulations Governing Securities Firms, and Regulations Governing Responsible Persons and Associated Persons of Securities Firms
On 18 July 2025, the FSC finalized the amendments to Standards Governing the Establishment of Securities Firms, Regulations Governing Securities Firms, and Regulations Governing Responsible Persons and Associated Persons of Securities Firms. As these amendments are consistent with the previously proposed drafts, please refer to Item 9 in *Lexgroup Newsletter (Issue No. 462)* for a detailed summary.
Reported by: Jeffrey Liu / Eva Chiu
3.Amendment to the Ruling on Securities Firms’ Approved Business Activities under the Proviso of Article 45, Paragraph 1 of the Securities and Exchange Act
On 18 July 2025, the FSC announced a ruling to amend the regulations governing the business activities that securities firms approved to conduct pursuant to the proviso of Article 45, Paragraph 1 of the Securities and Exchange Act. We summarize below:
(1) Securities firms are now permitted to introduce investments and provide services in relation to private equity funds in which their subsidiaries act as general partners. The scope of eligible investors now includes high-net-worth clients.
(2) Investors introduced by securities firms engaged by institutions must meet applicable qualification requirements. For each private equity fund, the number of introduced high-net-worth clients may not exceed 99.The transactions must not involve foreign exchange settlement in New Taiwan Dollars.
(3) When engaged by institutions related to private equity funds to introduce investments and provide services, securities firms must enter into an engagement agreement. They may also cooperate with trust enterprises to introduce investments via money trust arrangements. Securities firms may not subcontract the introduction of investments in private equity funds to other institutions.
Reported by: Jeffrey Liu / Eden Hsieh
4.Amendment to Self-Disciplined Guidelines for Securities Firms Conducting Fund Sales Business by the TSA
On 24 July 2025, the Taiwan Securities Association (TSA) announced the amendment to the Self-Disciplined Guidelines for Securities Firms Conducting Fund Sales Business by the TSA. We summarize below:
(1) To strengthen the principle of integrity in fund sales, securities firms are required to assess manpower and sales capacity before participating in fund offerings. It is also prohibited to induce sales personnel to solicit fund subscriptions from clients through improper means to meet performance targets.
(2) To prevent fund sales personnel from encouraging the public to invest in funds through borrowing, which could expose clients to excessive credit risk, such conduct is explicitly prohibited and included as a consideration in performance evaluations and compensation assessments.
Reported by: Jeffrey Liu / Eva Chiu
Financials
5.Draft Amendment to Offshore Banking Act Enforcement Rules
On 25 July 2025, the FSC announced the draft amendment to the Offshore Banking Act Enforcement Rules for public consultation. As the insurance enterprises will adopt a new solvency margin requirement starting in 2026, in order to facilitate the transition, the draft amended the “250%” of the equity capital to risk-based capital ratio requirement for establishing offshore insurance units stipulated in Subparagraph 1, Paragraph 1, Article 18-1 of the Enforcement Rules to “1.25 times of the capital adequacy standard specified in Subparagraph 1, Paragraph 2, Article 143-4 of the Insurance Act”.
Reported by: Stacy Lo / Zoe Chen
| 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) |
