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Taiwan FSC: Unapproved Financial Products May Not be Marketed in Taiwan

by WP

Taiwan’s Insurance Bureau recently issued a circular to leading insurance industry groups reiterating that  insurance companies and their salespeople are not allowed to solicit or recommend foreign financial products including viatical settlements unless expressly approved by the Financial Supervisory Commission. According to the circular, if insurers are found selling unapproved financial products,  they will face fines anywhere from NT$ 0.9 million (c. US$ 30,000)  to 4.5 million NTD (c. US$150,000). Insurance Act § 138(3).

The Insurance Bureau also stressed the that insurers have a duty to manage and train their salespeople. The insurer should announce the latest financial products approved by the Commission and update this list regularly. If an insurer fails to meet these duties, the Bureau and the Commission can

  • order the insurer to remedy its deficiencies
  • restrict how the insurer allocates its funds
  • order the insurer not to sell certain insurance products or restrict it from offering new products
  • order the insurer to increase its capitalization
  • order the insurer to terminate its managers or employees.  Insurance Act § 138(3).

Should an insurer fail to comply with one of these orders, the Bureau and the Commission have the the power to

  • revoke  decisions made at shareholder meetings or by the board of directors
  • remove or suspend the directors and supervisors
  • impose other necessary measures,  Insurance Act § 138(3).
 

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