AMENDMENT TO CRITERIA FOR RESPONSIBLE PERSONS OF INSURANCE ENTERPRISES

05/01/2009

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The Financial Supervisory Commission promulgated the amendment to the "Criteria for Responsible Persons of Insurance Enterprises" on March 11, 2009. It aims to strengthen the management of insurance enterprises and to enhance the professional capabilities of board of directors of insurance enterprises. The main points are summarized as follows:

• The Agricultural Finance Act, the Farmers Association Act, the Fisher Association Act and so forth have been added as the applicable financial regulations to be complied with. (Article 3)
• The required proportion of directors and supervisors who meet the professional qualification requirements has been raised to one-third from one-fifth. In addition, the chairman of the board of directors are required to have the professional qualifications. (Article 5)
•     The election and appointment of the chairman of the board of directors, directors and supervisors who meet the professional qualification requirements should be approved by the competent authority. (Article 7)
• The incumbent responsible person before this amendment takes effect is grand-fathered and not subject to Articles 4 and 5 during the then-curren tenure. It has also been prescribed that the responsible persons of insurance enterprises shall maintain the qualifications during his/her tenure. (Article 9)