萬國法律事務所

The memorandum of understanding (MOU) on the financial supervisory cooperation between the People’s Republic of China (PRC) and Taiwan, the Republic of China (ROC) was finally signed on November 16, 2009 and will come into force within 60 days. Taiwan has already signed 39 memoranda of understanding with the financial supervisory authorities of 34 countries or regions. Such memoranda, including the MOU, pave the way to future cooperation and are not legally binding upon the parties.

Sean Chen, the Chairperson of the Taiwan Financial Supervisory Commission (FSC), stressed that the terms of the MOU are in line with international practices and pertain mainly to the exchange of information, confidentiality of information, financial supervision, ongoing exchange and crisis management. Following the coming into force of the MOU, financial institutions of PRC and ROC will be able to establish branches in each other’s market. The FSC indicated that ROC financial institutions may submit applications to establish branches in the PRC upon the coming into force of the MOU. In the future, the FSC will be in the position to conduct effective supervision of the activities of ROC financial institutions in the PRC on the basis of the terms of the MOU.