2018.2.23
Sean Tsou
The Financial Supervisory Commission (hereinafter, the “FSC”) issued the Jin-Guan-Zheng-Chuan-1070303484 Circular of February 23, 2018 (hereinafter, the “Circular”) to ease relevant requirements by lifting the restriction that the compliance supervisor of a securities firm shall not concurrently hold another position in the company and by allowing the compliance supervisor to serve as the supervisor of a unit dedicated to money laundering prevention.
Pursuant to Article 27 of the Regulations Governing the Establishment of Internal Control Systems by Service Enterprises in Securities and Futures Markets, the competent authority may, after considering the size, business nature, and organizational characteristics of an operator, order such operator to establish a unit with a direct reporting line to the general manager to take charge of the planning, management and execution of a compliance system so that a security firm can comply with laws and regulations in handling relevant business. It was further explained in this Circular that apart from the past restriction imposed by the competent authority that a compliance supervisor shall not concurrently hold another position in the security firm, the supervisor of a compliance unit set up by a securities firm can serve not only as the head of the legal unit but also as the head of a unit dedicated to money laundering prevention and suppression of terrorist funding. It should be noted, however, the compliance supervisor of a securities firm is still required to meet the qualifications requirements under Article 5 of the Regulations Governing Responsible Persons and Associated Persons of Securities Firms.