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On 10 February 2010, the Financial Supervisory Commission revised Articles 3 and 9 of the Regulations Governing Required Qualifications for Responsible Persons of Insurance Enterprises. This revision limits the ability of a responsible person of an insurance enterprise to simultaneously take on professional functions in non-insurance businesses. The goal of this revision is to enhance corporate governance and to protect the public interest by avoiding adverse impacts to the operation of insurance enterprises that may arise from a responsible person's conflicts of interest. Highlights of the revision are:
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In accordance with the newly enacted Articles 15-1 and 15-2 of the Civil Code, the revision added a provision that a person subject to an order of commencement of assistantship that has not been revoked may not serve as a responsible person for an insurance enterprise.
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The revision also added the provision that the chairman of the board of directors, the general manager, or a person serving in an equivalent position of an insurance enterprise may not concurrently assume the position of chairman of the board of directors, general manager, or other equivalent positions in a non-insurance enterprise other than a foundation or non-profit association.
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To allow for an appropriate adjustment period, the revision will allow a person who is not in compliance with the terms of this revision but who, prior to the implementation of the revision, is already serving as a responsible person for a non-insurance enterprise to remain in his/her position until his/her term of office expires or he/she is otherwise dismissed, provided that he/she shall not remain in his/her position for a period longer than three years.
