Amendments to the “Regulations Governing Required Qualifications for Responsible Persons of Insurance Enterprises”
To strengthen insurers’ corporate governance, and to improve the professionalism and stability of boards of directors, the FSC amended the aforementioned Regulations on February 20, 2020. The key points of the amended provisions are as follows:
- If it is found that any disqualification criterion set out in these Regulations applies to a person already serving as a responsible person of an insurance enterprise, that fact shall constitute ipso facto cause for dismissal.
- Implementation of non-competition: When a natural person or a juristic person acts as a director (or supervisor) of an insurance enterprise, if that party or a related party thereof concurrently acts as a director (or supervisor) of another financial institution, a conflict of interest shall in principle be presumed to exist. However, this shall not apply in cases where there exists a relationship of control or subordination as set out in the “Company Act,” or where the concurrent positions are held in compliance with the provisions of these Regulations.
- Increasing the number of professional directors (supervisors) of insurance enterprises with total assets over NT$1 trillion: Insurance enterprises with 5 or fewer directors (supervisors) are required to have 3 professional directors (supervisors). At insurance enterprises with more than 5 directors (supervisors), there must be 1 additional professional director (supervisor) for each 3 additional directors (supervisors). The required number of professional managing directors has been increased from 2 to 3.
- Natural-person directors: An insurance enterprise with 13 or more directors may have 5 natural-person directors. However, at an insurance enterprise that is wholly owned either directly or indirectly by the government or a single juristic person, there is no need for any of its professional directors to be natural persons.
- Where the representative of the government or a juristic person has appointed a representative or a natural person to act its agent in exercising the duties of its position, if that agent serves as a supervisor of the insurance enterprise, then that enterprise shall be subject to provisions that prohibit anyone with a specified kinship relation from concurrently acting as both a director and an executive officer of a single insurance enterprise.
- An insurance enterprise''s board of directors is required to carefully review the qualifications of executive officers, and is responsible for monitoring to ensure that executive officers have upstanding character, maintain sufficient skills and qualifications, and are suitable for their positions.
- An insurance enterprise and its responsible person are required to promptly file a report with the competent authority when circumstances that constitute ipso facto cause for dismissal arise, and the insurance enterprise must notify the Ministry of Economic Affairs to void or revoke the firm''s registration.
Visitor： 686 Update： 2020-03-13