Melanie Lo
The Financial Supervisory Commission (hereinafter, the “FSC”) issued the Jin-Guan-Zheng-Tou-1040052859 Directive of January 22, 2016 (hereinafter, the “Directive”), which becomes effective immediately, to stipulate that a securities trust enterprise may send representatives to concurrently serve as directors or supervisors of a company invested by Taiwan Depository and Clearing Corporation.
According to this Directive, the chairman, president or managerial officers of a securities investment trust enterprise may be appointed to serve as the directors or supervisors of companies established and invested by Taiwan Depository and Clearing Corporation and the Taipei Exchange to distribute funds online and are not subject to the restriction against part-time work or the requirement for full-time engagement under Article 78, Paragraph 3 of the Securities Investment Trust and Consulting Law; Article 7, Paragraph 1 and Article 15, Paragraph 3 of the Regulations Governing Legal Representatives and Sales People of Securities Investment Trust Enterprises; and Article 6, Paragraph 1 and Article 7, Paragraph 7 of the Regulations Governing Legal Representatives and Sales People of Securities Investment Consulting Enterprises.
The Directive also points out that if a securities investment trust enterprise or a securities investment consulting enterprise serving as a general distributor of offshore funds assigns personnel to concurrently serve as directors or supervisors, documents such as board meeting minutes, a statement on the part-time work of personnel to be assigned, a document indicating there is no conflict of interest and relevant intern control systems shall be submitted to the FSC for approval before such part-time work may be engaged. In addition, registration and recordation should be sought with the Securities Investment Trust and Consulting Association of the Republic of China. If the part-time work is canceled, the registration of such personnel’s part-time work shall be canceled within five business days after the day of the fact.