Newsletter
Regulations for Establishment and Administration of Insurance Enterprises Partially Amended
The Financial Supervisory Commission (FSC) issued the partially amended Regulations for Establishment and Administration of Insurance Enterprises (Ref. No. Jin-Kuan-bao-Tsai-1030256161) on 31 July 2014, effective on the same date:
To enable Insurance Enterprises to more efficiently use their funds and to implement financial supervision in the spirit of diversity management, the FSC amended Articles 24, 24-1 and 24-2. The main points of the amendments are as follows:
1. New criteria and regulations for eligible Insurance Enterprises to calculate their funds, owner's equity and various types of reserves on the basis of self-assessed (unaudited) figures.
2. New criteria and regulations for Insurance Enterprises not to calculate their funds, owner's equity and various types of reserves on the basis of self-assessed (unaudited) figures.
3. New addition that any use of various funds beyond authorization as indicated by the calculation results of the Insurance Enterprises which calculate the funds, owner's equity and various types of reserves on the basis of self-assessed (unaudited) figures adjusted as attested or reviewed by a CPA or by using the figures recognized by the competent authority would be deemed to be attributable to investments. However, any use of various funds beyond authorization as indicated by the calculation results of Insurance Enterprises that have ceased to use self-assessed (unaudited) figures for such calculation and have adopted the basis outside the scope of the proviso of Article 24 will not be deemed to be attributable to investments.