Formed 1 July 2004 Website www.fsc.gov.tw Founded 1 July 2004 | ||
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Superseding agency Financial Services Commission Profiles | ||
The Financial Supervisory Commission (FSC; Chinese: 金融監督管理委員會; pinyin: Jīnróng Jiāndū Guănlĭ Wěiyuánhuì, abbreviated to 金管會) is an independent government agency subordinate to the Executive Yuan of the Taiwan (ROC). It is responsible for regulating securities markets (including the Taiwan Stock Exchange and the Taiwan Futures Exchange), banking, and the insurance sector.
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Its main office is located in Banqiao District, New Taipei.
The commission has faced frequent changes in leadership in its short history, due to scandals and crises which began when its first chairperson was removed from his position due to corruption.
History
It was created on 1 July 2004 to unify several previously separate regulatory authorities which separately supervised different sectors of the finance industry. Prior to the actual creation of the commission, several alternative structures for regulatory agency reform had been proposed, including a purely non-governmental commission, as well as the establishment of both a governmental regulatory agency and non-governmental supervisory commission; the choice of a purely governmental commission was finalised in 2003 by the Legislative Yuan.
The reasons for the creation of the FSC as an umbrella independent financial regulator was due to:
- Financial convergence and cross-market business - market has evolved and became more complex to manage
- Single financial regulator - one stop shop for regulating all securities and investments.
- Independent Authority at Cabinet Level - experts in their field without political interference
- Stronger Law Enforcement - cross referencing cases and building stronger case for misconduct