萬國法律事務所

Taiwan’s Securities and Futures Bureau of the Financial Supervisory Commission (SFB) will amend regulations to permit directors and supervisors of securities investment trust enterprises and securities investment consulting enterprises to hold concurrent posts. However, any one person will still be prohibited from acting as the chairman and the manager, or the manager and the director, or supervisor concurrently.

According to the proviso of Article 78 (3) of the Securities Investment Trust and Consulting Act, and Article 15 (3) of the Regulations Governing Responsible Persons and Associated Persons of Securities Investment Trust Enterprises, and the exception set forth in Article 7 (4) of the Regulations Governing Responsible Persons and Associated Persons of Securities Investment Consulting Enterprises, SFB has the authority to permit directors and supervisors to concurrently hold positions in different securities investment trust enterprises and securities investment consulting enterprises.

The reason that this measure was adopted is to cope with the investment relationships between securities investment trust enterprises, securities investment consulting enterprises and security companies. Because there are substantial investments made by and between these companies, these companies need to appoint directors and supervisors to manage the invested companies. This measure is thus expected to enhance the quality of management of these companies.

SFB indicated that in the future, upon obtaining approval from the relevant authority, the directors and supervisors may concurrently hold positions in different companies. Nevertheless, the companies must list this kind of investment decision and establish preventive measures to deal with potential conflicts of interest, such as maintaining a separation of business information in the enterprise’s internal control system.