The Financial Supervisory Commission (FSC) plans to toughen penalties on securities companies that contravene the Securities and Exchange Act (證券交易法), it said on Tuesday.
The maximum fine for securities companies that breach the act, due to issues such as poor internal controls or professional negligence, would be increased from NT$4.8 million (US$173,486) to NT$6 million, Securities and Futures Bureau Deputy Director-General Tsai Li-ling (蔡麗玲) said.
Under draft amendments to act, anyone who acquires more than 5 percent of a listed company’s shares would need to report the purchase to securities regulators and make a public announcement, compared with 10 percent currently, Tsai said.
Photo: Kelson Wang, Taipei Times
“It is intended to give investors more real-time information when a company’s share structure changes drastically,” Tsai said. “The US, Japan and many countries have used 5 percent as the threshold [for reporting], and now we think it is time for Taiwan’s market to follow suit.”
If investors adjust their shareholding by more than 1 percent, they would also have to make an announcement, she said.
As of the end of last month, there were 3,266 shareholders who each held a stake in a public company of more than 5 percent but less than 10 percent, and they would be asked to make public announcements if the amendments to the act take effect, Tsai said.
The commission expects the amendments to be passed by the legislature by the end of this year, Tsai said.
Investors would be given a one-year grace period to make announcements, she added.
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