Taiwan FSC reveals focus areas for 2022 inspections
The 7 main areas of intervention include consumer protection, real estate credit, information security, conflicts of interest and green finance.
Taiwan’s Financial Supervisory Commission (FSC) has announced seven key areas for its financial inspections in 2022.
Focus areas are revealed to ensure transparency of FSC inspections and enable FIs to proactively strengthen self-management and improve their operations, in line with a new set of guidelines published in July 2021 which aimed to establish a âculture of professional, fair, risk-based and open communication financial inspectionâ.
Areas of interest for inspections include:
- consumer financial protection and fair hospitality, which covers embezzlement of customer funds, protection of the rights and interests of elderly and disabled customers, and the operations and management of wealth management activities
- Information Security Management and Personal Data Protection, which covers the information security governance of the board of directors, information security chiefs and specialized security units and supervisors of the ” information, system updates and network security for subsidiaries
- digital financial services, which cover mobile and online identity verification, mobile application development and version management, consumer information request management, online account opening and application service for personal information or transactions, including security mechanisms
- mortgage review, which covers the review of home purchases, excess home finance and civil construction loans, interest rate pricing, post-loan management, mortgage collateral activities and compliance with central bank regulations governing mortgage lending activities
- Risk Management on the Continent, which covers the risk management of credit and investment activities on the continent, as well as the management of financial activities and equity participation of continental institutions
- conflicts of interest and oversight of the investment processes of investment trust funds and general accounts, which will focus on fund managers and related parties
- green and sustainable finance, which focuses on disclosures of information relating to the issuance of ESG thematic funds by securities investment companies
The FSC said it would also consider areas such as corporate governance, global risk management, AML / CFT mechanisms, as well as risk management related to investment rooms and markets, liquidity, venture capital and private equity funds.
Other industry-specific areas to be covered by inspections include reinvestment activities of financial holding companies, workforce management of securities firms, foreign securities trading, disclosure of information on domestic and foreign funds and ETFs.