The Taiwan Monthly

Nov. 2020

Market & ETP Overview

The FSC will launch Taiwan Capital Market Roadmap with five major strategies by year-end

In response to the three main trends of ESG, digital technologies, and an aging society , the Financial Supervisory Commission (FSC) is currently developing a roadmap for the capital market, in addition to launching the “Corporate Governance 3.0 - Sustainable Development Roadmap” earlier this year. To forge a forward-looking and globally competitive capital market, the new roadmap aims to create an ecosystem for market participants to achieve shared wellbeing and prosperity, thereby fulfilling the vision of a fair, efficient, diverse, and internationalized capital market with a focus on innovation and openness. In its commitment to enhancing sound market development, safeguarding investors, and maintaining orderly markets, the FSC is currently laying out the major strategies and key items under the 3-year Capital Market Roadmap, focusing on the four main objectives of “sustainable development,” “financial inclusion,” “enhanced competitiveness,” and “investor protection.” The roadmap, expected to be rolled out by the end of this year, seeks to enhance capital market functions and stimulate Taiwan’s economic growth.

To achieve the four main objectives, the roadmap currently includes 5 major strategies and 25 key items as follows:

Strategy 1: Strengthen primary market functions to support real economic development.

  • Establish new innovation board.
  • Optimize IPO and SPO financing regulations.
  • Enhance supervision and information transparency of TWSE/TPEx-listed companies.
  • Expand responsibilities and management of securities market specialists.
  • Improve audit quality.

Strategy 2: Activate the market and increase efficiency and liquidity.

  • Promote intraday odd lot trading.
  • Develop market-making system.
  • Enhance clearing and settlement fund system.
  • Improve market transparency and investor risk management.
  • Establish investment-friendly taxation.

Strategy 3: Attract domestic and foreign investment and improve international visibility.

  • Improve convenience and efficiency for foreign investment.
  • Promote Taiwan capital market and strengthen international cooperation.
  • Increase investor protection and education.
  • Continue to attract domestic capital.
  • Achieve status of QCCP under Basel III framework.

Strategy 4: Boost functions and competitiveness of financial intermediaries.

  • Integrate fintech to promote digital transformation and RegTech.
  • Support securities firms to develop investment banking in line with international trends.
  • Encourage expanded operations of investment trust and consulting.
  • Stimulate development in futures operations.
  • Enhance information security.
  • Cultivate financial professionals.

Strategy 5: Encourage financial innovation and product diversity.

  • Establish sustainability market.
  • Expand scope of asset management.
  • Set up central clearing system for OTC derivatives.
  • Promote the development of diverse financial products for securities and futures markets.

The FSC will be working with the Taiwan Stock Exchange, Taipei Exchange, Taiwan Depository and Clearing Corporation, and Taiwan Futures Exchange, as well as the Securities and Futures Institute, Securities and Futures Investors Protection Center, and other associated agencies to convene strategic working groups to discuss specific measures and timeline of 5 major strategies and 25 key items. The Capital Market Roadmap will be finalized by the end of this year and begin implementation from 2021. The FSC will conduct yearly review of implementation and make adjustments on a rolling basis.


Source: Financial Supervisory Commission, Republic of China (Taiwan) website.,2&mcustomize=multimessage_view.jsp&dataserno=202009240002&aplistdn=ou=news,ou=multisite,ou=english,ou=ap_root,o=fsc,c=tw&dtable=News

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