The Electricity Act was amended to liberalize the electricity market in Taiwan — The long-awaited amendments to the Electricity Act was approved by the Legislative Yuan on January 11, 2017 and promulgated by the President on January 26, 2017. The main revisions include: (1) power generation will be opened up for private investment; (2) renewable energy providers will be allowed to sell their power directly to customers; (3) consumers will have options to access green energy or conventional electric power.
The “Directions Governing Anti-Money Laundering and Countering Terrorism Financing of Insurance Sector” were amended on Februray 2, 2017. The amended Article 3 provides that the Directions shall also apply to professional reinsurance enterprises and banks concurrently operating the insurance agent or insurance broker business.
The “Regulations Governing the Preparation of Financial and Business Reports by Insurance Enterprises” were amended on January 24, 2017. With respect to the requirement to disclose investments and business operations in the Mainland Area, the amendments restrict such requirement’s applicability to an insurance enterprise exercising, directly or indirectly, significant influence or control over, or having a joint venture interest in, an investee company in the Mainland Area. In addition, when disclosing related party transactions, the amendments require insurance enterprises to set forth the names of the related parties and the nature of the relationship; where the transaction amount or balance of a disclosed related party transaction reaches 10% or more of the said insurance enterprise’s aggregate amount or outstanding balance for such transactions, the names of the related parties shall be listed individually.
Article 163 of the Insurnace Act was amended on December 28, 2016. With respect to the obligation of an insurance broker to provide a written analysis report to an insured prior to negotiating a insurance contract on behalf of the insured, the amendment limits the applicability of the obligation to situations falling within the scope prescribed by the competent authority.
The Financial Supervisory Commission (“FSC”) amended the “Regulations Governing the Acquisition and Disposal of Assets by Public Companies” — The FSC amended the “Regulations Governing the Acquisition and Disposal of Assets by Public Companies” on February 9, 2017. The main amendments include: (1) loosening the standard governing the obligation of large companies to publicly announce and report on the acquisition or disposal of business or operational facilities in non-related party transactions; (2) exempting public companies engaging in the business of investing from public announcement requirements when acquiring and disposing of securities; (3) expressly requiring companies, when informed of errors or omissions in their public announcements, to provide new announcements and reports that include all of the items previously included, within two days starting from the next day of being so informed; (4) exempting the requirement for an expert opinion in transactions involving a parent company merging with its wholly-owned subsidiary or the merger of two wholly-owned subsidiaries of the same parent company.