Lawmakers yesterday approved an amendment to the Financial Holding Company Act (金融控股公司法), lowering the threshold at which major shareholders must report their stock possessions to the Financial Supervisory Commission (FSC).
The amendment stipulates that anyone who independently or jointly owns more than 5 percent of a financial holding’s issued shares should report to the FSC within 10 days of the shares exceeding the threshold. The original threshold was 10 percent.
The amendment also requires that anyone who would like to possess more than 10 percent, 25 percent or 50 percent of a financial holding’s shares should ask for the FSC’s permission in advance.
The current law only obliges those who intend to purchase more than 25 percent, 50 percent or 75 percent of a financial holding company’s issued stock to seek FSC approval.
The amendment also introduces a new requirement that financial holdings should seek approval from the FSC if the companies are considering reducing capital of their subsidiaries.
The bill states that representatives from financial holdings are prohibited from serving as board members or supervisors of the companies the holdings invest in.
The bill also authorizes the FSC to approve or disapprove joint marketing campaigns between subsidiaries of a financial holding company.
The amendment stipulates that the subsidiaries are only allowed to share a customer’s basic personal information.
Information related to a customer’s transaction records cannot be shared unless the subsidiaries have the customer’s consent, the amendment says, adding that companies should immediately cease using a customer’s personal information or transaction records upon request.