TAIWAN Trends and Developments Contributed by: Weita Liao, Denise Jen, Arthur Chang and Peter Chen, LCS & Partners
By providing the tax incentive, the government aims to increase the willingness of enterprises to form industrial holding companies. This strategy is intended to help industries strengthen their supply chain resilience and enhance their overall international competitiveness. Amendments to the Regulations Governing the Investing Activities of a Financial Holding Company To ensure that relevant regulations better align with the M&A practical operations and to maintain market order, the Financial Supervisory Commission (FSC) amended the “Regulations Governing the Investing Activities of a Financial Holding Company” on 25 November 2025. The key points of the amendments include strengthening the regulatory framework for the investment activities of financial holding com - panies and relaxing financial leverage supervisory
mechanisms to ensure the stable operation of finan - cial institutions. These include the requirement that initial investments in financial holding companies, banks, insurance companies and securities firms must acquire a controlling interest, and that reason - able and feasible financial and funding plans must be proposed. Furthermore, to protect shareholder equity, when a financial holding company plans to apply for an initial investment, the proposal must be submitted to the Audit Committee for review before the board of directors passes a resolution. In addition, exter - nal independent experts must be engaged to provide professional opinions, and the remuneration of these experts must not be linked to the success or failure of the investment. These measures aim to strengthen a legal framework conducive to investment in and the development of financial holding companies, while establishing a robust M&A environment.
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