Newsletter
Legal Update
Dear friends and clients:
The Financial Supervisory Commission (the "FSC") has recently amended the "Implementation Rule Governing Banks' Internal Control and Auditing Systems" (the "Rules") on June 14, 2005 to strength the well-establishment of banks' internal control and auditing systems. Twelve articles of the Rules have been amended including a provision that all foreign banks' branches in Taiwan shall be governed by the Rules with certain exceptions.
The FSC has also promulgated an amendment to the "Scope and Parties of Material Incidents to Be Reported by Banking Enterprise" (the "Amendment") on June 16, 2005 in order to facilitate the relevant regulators' understanding of the occurrence of material incidents in certain financial institutions and also to enhance the stability of financial market. The Amendment categorizes material incidents in eight respects and defines the banking enterprise by including financial holding companies, local banks, foreign banks' branches in Taiwan, bills financing companies, credit card companies, trust companies and Chunghwa Post Co., Ltd. to be governed by the Rules.
Attached please find our alert sheets summarizing the above-mentioned amendments in a nutshell for your review.
Should you have any questions or comments, please feel free to contact Mr. Alex Jui-Lin Liu (alexliu@leeandli.com), Ms. Sherry Lin (sherrylin@leeandli.com), Ms. Lilian Kou (liliankou@leeandli.com) or Mr. C. T. Chang (ctchang@leeandli.com).
Best regards.
LEE AND LI, ATTORNEYS-AT-LAW
7F, No. 201, Tun Hua N. Road
Taipei , Taiwan 10508, R. O. C.
TEL : 886-2-2715-3300
FAX: 886-2-2713-3966
Summary 07042005.pdf | Alert Sheet Material Incidents.pdf