January 2024
Amendment to Taiwan Financial Consumer Protection Act
January 2024
Elva Chuang and Hannah Kuo
The Legislative Yuan passed the amendment to the Financial Consumer Protection Act on November 21, 2023, and the revised articles were promulgated by the President on December 6. The amendments will take effect on February 1, 2024. A brief summary of the key changes is provided below for the reference of relevant industry participants:
1. In alignment with the repeal of the " Act Governing Issuance of Electronic Stored Value Cards " and the amendment to the " Act Governing Electronic Payment Institutions," the term " electronic stored value card enterprises" under the category of "financial service enterprise" in Article 3 of the Financial Consumer Protection Act, has been amended to "electronic payment enterprise " (i.e., electronic payment institutions defined in Article 3, Paragraph 1 of the Act Governing Electronic Payment Institutions).
2. For financial service industries that have not established industry associations, Article 11-1 of the Financial Consumer Protection Act is amended to include the authorization for "association groups" designated by the competent authority to formulate principles for sales personnel remuneration system. These principles must be submitted to the competent authority for their approval, aiming to strengthen self-discipline and legal compliance within the industries.
3. Generally, information and ombudsman processes related to financial-consumer disputes known to the ombudsman body and its personnel shall be maintained confidential, unless it is otherwise provided by law or agreed upon by both parties to the dispute (Article 19, Paragraph 1 and Paragraph 2 of the Financial Consumer Protection Act). However, to assist consumers in selecting financial service providers, the amendment to Article 19 of the Financial Consumer Protection Act introduces Paragraph 3, which requires ombudsman body to regularly disclose statistical data on complaints and ombudsman cases involving financial service enterprises.
Elva Chuang and Hannah Kuo
The Legislative Yuan passed the amendment to the Financial Consumer Protection Act on November 21, 2023, and the revised articles were promulgated by the President on December 6. The amendments will take effect on February 1, 2024. A brief summary of the key changes is provided below for the reference of relevant industry participants:
1. In alignment with the repeal of the " Act Governing Issuance of Electronic Stored Value Cards " and the amendment to the " Act Governing Electronic Payment Institutions," the term " electronic stored value card enterprises" under the category of "financial service enterprise" in Article 3 of the Financial Consumer Protection Act, has been amended to "electronic payment enterprise " (i.e., electronic payment institutions defined in Article 3, Paragraph 1 of the Act Governing Electronic Payment Institutions).
2. For financial service industries that have not established industry associations, Article 11-1 of the Financial Consumer Protection Act is amended to include the authorization for "association groups" designated by the competent authority to formulate principles for sales personnel remuneration system. These principles must be submitted to the competent authority for their approval, aiming to strengthen self-discipline and legal compliance within the industries.
3. Generally, information and ombudsman processes related to financial-consumer disputes known to the ombudsman body and its personnel shall be maintained confidential, unless it is otherwise provided by law or agreed upon by both parties to the dispute (Article 19, Paragraph 1 and Paragraph 2 of the Financial Consumer Protection Act). However, to assist consumers in selecting financial service providers, the amendment to Article 19 of the Financial Consumer Protection Act introduces Paragraph 3, which requires ombudsman body to regularly disclose statistical data on complaints and ombudsman cases involving financial service enterprises.
