Newsletter
Amendment to Article 4 of the Regulations Governing Insurance Enterprises Conducting Transactions Other Than Extending Loans with Related Parties
Financial Supervisory Commission (FSC) issued a ruling (Ref. No. Jin-Kuan-Pao-Tsai-10302500031) on 10 March 2014 to amend the Regulations Governing Insurance Enterprises Conducting Transactions Other Than Extending Loans with Related Parties. Main points of the amendment are as follows:
1. Considering that joint promotions and co-marketing are cross marketing activities that the subsidiaries of financial holding companies are allowed to conduct, the general authorization of board of directors to both types of activities shall be handled using the same standard. Hence the addition that general authorization of board of directors may apply to splitting of handling fee, service charge or commission arising from joint promotions.
2. In consideration of financial market practices, wording was amended from "purchase, redemption of beneficiary certificate" to "investment in, disposition of beneficiary certificate."
3. New addition that where a related party is a securities investment company, the transactions conducted with fund assets pursuant to the Regulations Governing Futures Trust Funds may be handled in accordance with the general authorization of board of directors.
4. New addition allowing each transaction conducted between the financial holding parent company and its wholly owned subsidiary up to NTD10,000,000 to be handled in accordance with the general authorization of board of directors.
5. New addition to the criteria for "per transaction" under Subparagraphs 5 and 12 of Paragraph 3 of Article 4 of the Regulations.