Taiwan FSC Warned Offshore Financial Products Sales Needs Approval

It should be noted that the activities of the salespersons employed by foreign financial institutions without registered establishments in Taiwan involving in soliciting financial products in the territory of the may breach Article 29 of the Banking Act, the Financial Supervisory Commission (“the FSC”) warned.

Registered financial institutions could offer financial services or products, which suit with investors’ risk profile and financial capacity, and also provide comprehensive elaborations of such service or product. In addition, Financial Consumer Protection Act could fairly, reasonably, and effectively resolve disputes between registered financial institutions and investors. The FSC urges consumers and investors to purchase financial products only via the legitimate providers duly approved by the competent authority.

The FSC further reiterates that, registered financial institutions shall only engage in the permitted businesses; any means to assist foreign financial institutions soliciting overseas deposit accounts or funds in Taiwan are strictly prohibited. The FSC will continually ensure the integrity and soundness of the financial markets, and welcome reporting of such violation to the FSC or the juridical authority.