2017.9.7
Sophia Tsai
The Financial Supervisory Commission prescribed the Principles and Required Measures for Contents of Financial Examination Reports Provided by Financial Institutions (hereinafter, the “Requirements”) via the Jin-Guan-Jian-Zhi-10601503300 Directive of September 7, 2017.
According to the Directive, financial examination reports issued by the Financial Supervisory Commission (hereinafter, the “FSC”) are confidential government documents prepared by the FSC’s examiners for the sake of financial supervision and cannot be reviewed without the FSC’s approval. The recipients, scope, manners and administrative measures associated with an examined institution’s provision of financial examination reports issued by the FSC for review shall be governed by the Requirements.
Firstly, internal personnel, the chairman and general manager, chief auditor (audit supervisor) as well as their designated auditors (or personnel authorized by the overseas head office of a foreign financial institution in the absence of an auditor in its Taiwan branch), the compliance supervisor of the head office and his/her designated compliance officers, and the board of directors (governors) and supervisors or the audit committee of an examined institution may review the entirety of a financial examination report. As for the supervisors of relevant business units indicated in the examination opinions as well as their designated personnel, an excerpt or summary of portions relating to their business shall be prepared by the audit unit. If personnel other than the above-mentioned personnel need to review a financial examination report in the execution of their business, they shall apply to the internal audit unit of the organization. After the necessity of such review is examined by the chief auditor (or audit supervisor), the review shall be basically conducted onsite or relevant portions of the financial examination report shall be copied in the presence of personnel dispatched by the audit unit throughout the entire process, except that an excerpt or summary of the portions relating to their business as prepared by the audit unit may be provided if it is indeed necessary to do so.
Secondly, the head office of an examined institution may be provided with the entirety of a financial examination report. In addition, such report may be assigned to its internal audit unit (personnel) in charge of implementing relevant administrative matters pursuant to the manners in which the head office manages and uses financial examination reports in order to fulfill the duty of confidentiality.
Thirdly, if a financial examination report involves a subsidiary, the internal audit unit of the parent company shall prepare an excerpt or summary on portions of the financial examination report relating to the business of the subsidiary and assign the same to its internal audit unit or another unit dedicated to implement relevant administrative matters pursuant to manners in which the subsidiary manages and uses financial examination reports in order to fulfill the duty of confidentiality.
Fourthly, the certifying CPAs and attorneys of an examined institution may apply to the internal audit unit of the examined institution. After the necessity of the application is examined by the chief auditor (audit supervisor), the review shall be basically conducted onsite or relevant portions of the financial examination report shall be copied in the presence of personnel dispatched by the audit unit throughout the entire process, except that an excerpt or summary of the portions relating to their business as prepared by the audit unit may be provided if it is indeed necessary to do so.
Finally, if a foreign financial regulatory agency requests to review a financial examination report issued by the FSC through an examined institution, the examined institution shall obtain the FSC’s approval before relevant contents of the financial examination report may be provided and shall indicate in its reply that the FSC’s financial examination reports are confidential documents and are intended for reference of financial supervision, and that it should be noted that the confidentiality of the materials in financial examination reports should be maintained and the materials should not be provided to any third party for use.
Based on the above requirements and restrictions, the entirety or part of a financial examination report shall not be reviewed or otherwise disclosed, delivered or publicized except as otherwise required by laws and regulations or with the FSC’s approval. The offender will violate Article 132 of the Criminal Code and other relevant laws and regulations.