Fintech 2026

TAIWAN Law and Practice Contributed by: Robin Chang, Sarah Wu and Eddie Hsiung, Lee & Li

ucts and services. Within the FSC, there are four bureaus: the Banking Bureau (BB), the Securities and Futures Bureau (SFB), the Insurance Bureau (IB) and the Financial Examination Bureau (EB). The BB, SFB and IB each have their own area of authority, that is, banking, securities or insurance, while the EB handles financial inspection and audits for all types of institu - tions regulated by the FSC. At present, there is no designated bureau responsible for overseeing fintech products and services. Consequently, the determina - tion as to which bureau should regulate the respective fintech offerings is contingent upon the nature and characteristics of the products and services. Also, the Central Bank of the Republic of China (Tai - wan) (the “Central Bank”) will have the authority if for - eign exchange will be involved. 2.7 No-Action Letters In practice, when industry participants face uncer - tainty regarding laws or regulations, they may seek clarification from regulators. However, the responses provided by the regulators are not considered “no- action” letters. 2.8 Outsourcing of Regulated Functions The regulations governing outsourcing by financial services companies depend on the type of the com - pany. For instance, banks must comply with the Reg - ulations Governing Internal Operating Systems and Procedures for the Outsourcing of Financial Institution Operation, which only allow outsourcing of activities specified in those regulations. Some activities may require prior approval from the FSC. Other types of financial services companies (eg, securities firms, insurance companies, etc) have their own sets of out - sourcing regulations. Generally speaking, financial services companies conducting outsourcing should supervise the service providers (ie, outsourced entities), and there are provi - sions that are required to be specified in the outsourc - ing agreement. In the case of banks, for example, a bank’s outsourcing agreement shall specify the fol - lowing contents: • The scope of outsourcing and the responsibilities of service provider.

• A provision requiring the service provider to comply with certain laws and regulations. • Consumer protection, including the confidentiality of customer data and adoption of security meas - ures. • A requirement for the service provider to carry out consumer protection, risk management, and inter - nal control and internal audit in accordance with its standard operating procedures established under the supervision of the bank. • Consumer dispute resolution mechanisms, includ - ing the timetable and procedure for handling dis - putes, and remedial measures. • Management of a service provider’s employees, including employee recruitment, promotion, perfor - mance reviews and discipline. • Material events that lead to the termination of an outsourcing agreement with the service provider, including a provision on termination or revocation of the agreement if so instructed by the competent authority. • An agreement by the service provider to allow the competent authority and the Central Bank to access relevant data or reports and conduct finan - cial examinations with respect to the outsourced items, or to provide relevant data or reports within a prescribed time period pursuant to an order of the competent authority or the Central Bank. • An agreement by the service provider not to use the name of the outsourcing bank in the course of handling the outsourced items, nor to use untruth - ful advertising or charge the customers any fees when marketing loan services. • A requirement for the service provider to inform the bank if the outsourced operation involves any material irregularities or deficiencies. 2.9 Gatekeeper Liability In Taiwan, the term “gatekeeper” lacks an official def - inition, but within the area of capital markets/IPOs, securities underwriters are commonly regarded as ful - filling the gatekeeper role. The regulation of securities underwriters falls under the Securities and Exchange Act, and there is currently no legislation specifically addressing securities underwriters in the context of fintech.

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