Finance
1.Amendment to Operational Guidelines for Artificial Intelligence Applications Used by Financial Institutions
On 2 October 2025, the Bankers Association of the R.O.C. announced the amendment to the Operational Guidelines for Artificial Intelligence Applications Used by Financial Institutions (Guidelines). We summarize below:
(1) To amend the scope of application: Where Artificial Intelligence (AI) use involves interactions with consumers, provision of financial product recommendations, or provision of customer services, or affects customers’ rights and interests in financial transactions or has a material impact on operations, the institution shall conduct an assessment in accordance with internally established risk-assessment criteria and pursuant to its internal procedures, determine the scope of application of these Guidelines;
(2) When addressing issues of unfairness or bias in AI, institutions shall consider whether to include the textual structure of the data parameters used in algorithmic determinations, and shall positively enumerate the range of personal attributes included in such algorithmic determinations, so as to facilitate prudent risk assessment from the perspectives of information security, compliance, and risk control; and
(3) In coordination with amendment to Article 3 from “direct interactions with consumers” to “interactions with consumers,” related provisions have been amended accordingly.
Reported by: Stacy Lo / Linda Guo
2.Announcement of the Regulations Governing Investments in Financial Holding Companies, Banks, Insurance Companies and Securities Firms by Financial Holding Companies or Banks
On 25 November 2025, the Financial Supervisory Commission (FSC) announced the “Regulations Governing Investments in Financial Holding Companies, Banks, Insurance Companies and Securities Firms by Financial Holding Companies or Banks”, which regulate the conduct of financial holding companies and banks in making their initial investments in accordance with the law. The Regulations take effect on 27 November 2025. We summarize below:
(1) In principle, a financial holding company or bank shall acquire over 25% of the voting shares or capital of the invested institution. If the invested institution is publicly listed, the shares shall be fully purchased in cash via a tender offer within three months of approval; if non-public, the investment shall be completed within three months. The acquisition shall comply with relevant restrictions, including that related parties may not increase shareholdings before approval and may not tender during the tender offer.
(2) A financial holding company or bank shall undertake to complete the consolidation within a maximum of three years, and may not apply to invest in other financial institutions before completion
(3) A financial holding company or bank shall submit a financially and practically feasible funding plan and commit to its implementation.
(4) During the approval period, a financial holding company may count 20% of the investment amount toward its statutory capital requirement; if the consolidation is not completed within the period, the entire investment amount shall be counted in principle. During the approval period, a bank may record the investment in the trading book with a 200% risk weight; if the consolidation is not completed within the period, the investment shall be reclassified to the banking book and handled in accordance with general capital adequacy regulations in principle.
Reported by: Stacy Lo / Alva Wu
3.Amendment to Regulations Governing the Investing Activities of a Financial Holding Company and Regulations Governing Investments in Other Enterprises by Commercial Banks
On 25 November 2025, the FSC announced the amendment to the “Regulations Governing the Investing Activities of a Financial Holding Company”, and the amendment to the “Regulations Governing Investments in Other Enterprises by Commercial Banks”. 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) To delete the provision in the original article that required a financial holding company, when making its initial investment in a financial institution, to obtain a resolution of non-objection from the board of directors of the invested enterprise, and revise it to require the submission of a reasonability and feasibility plan;
(4) The financial holding company shall propose to the audit committee for approval before conducting the first investment;
(5) The financial holding company which invests in public companies by acquiring shares through a tender offer shall keep the terms of the tender offer confidential before the competent authority approves; and
(6) For any application that has been denied, no new application to invest in the same enterprise may be submitted within one year.
Reported by: Stacy Lo / Eva Chiu
Labor
4.Amendment to Insured Salary Category Chart of Labor Occupational Accident Insurance
On 17 November 2025, the Ministry of Labor (MOL) announced the amendment to the Insured Salary Category Chart of Labor Occupational Accident Insurance to be in line with the adjustment of the monthly minimum wage to NT$29,500. The monthly insured salary for the first tier has been revised to NT$29,500. The amendment will take effect on 1 January 2026.
Reported by: David Tsai / Julia Kuo
5.Announcement of amendment to the Regulations for Implementing Unpaid Parental Leave for Raising Children
On 21 November 2025, the MOL announced the amendment to the “Regulations for Implementing Unpaid Parental Leave for Raising Children.” We summarize below:
(1) To add that the employee may apply for unpaid parental leave in units of days, but the total duration must not exceed 30 days.
(2) To amend that applications for unpaid parental leave of more than thirty (30) days but less than 6 months shall be limited to two (2) times.
(3) To add that if the employee has temporary caregiving needs, he/she may apply with the employer at least 1 day in advance.
(4) To add that if the employee is unable to apply for parental leave in advance due to the emergency, he/she may engage another person to apply on his/her behalf.
(5) To amend that the method for the employee to apply with the employer for the unpaid parental leave shall be subject to the agreement of both sides in advance.
Reported by: David Tsai / Joe Liao
Securities
6.Amendment to the Ruling Regarding Paragraph 2, Article 37-1 of the Regulations Governing Securities Firms
On 13 November 2025, the FSC issued a ruling to amend and replace previous ruling concerning the types and scope of securities eligible for day trading. The amendment expands eligibility to include shares listed on the Innovation Board for day-trading transactions.
Reported by: Jeffrey Liu / 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) |
