TAIPEI (TVBS News) — Taiwan's highest government watchdog body has conducted a comprehensive review of the island's financial regulator. The Control Yuan (監察院), Taiwan's top government oversight institution, revealed Tuesday (June 24) that its Finance and Economic Committee completed a thorough inspection of the Financial Supervisory Commission (FSC, 金融監督管理委員會), Taiwan's primary financial regulatory authority. The evaluation, which took place a day earlier, aimed to scrutinize the commission's operational effectiveness across multiple domains. Inspectors delved into the FSC's budget implementation, policy planning mechanisms, and efforts to combat illicit underground financial activities that operate outside regulatory frameworks.
During the session, committee members engaged in substantive discussions covering a diverse range of financial sector initiatives and regulatory challenges. The dialogue encompassed the FSC's strategic efforts to establish the Asia Asset Management Center (亞洲資產管理中心), a hub designed to attract international investment firms to Taiwan, alongside progress in developing a domestic carbon trading platform to facilitate environmental markets. Regulators faced pointed questions about potential risks associated with recent financial deregulation measures, strategies to monitor and control unofficial remittance channels used by foreign workers, and oversight frameworks for non-bank leasing companies. Officials also provided updates on the legislative advancement of the Virtual Asset Service Providers law (VASP, 虛擬資產服務法), which aims to regulate cryptocurrency and digital asset businesses.
The oversight session extended to an assessment of the Central Deposit Insurance Corporation (CDIC, 中央存保公司), Taiwan's equivalent to the FDIC in the United States, particularly scrutinizing its protocols for managing assets acquired from troubled financial institutions. Committee members reviewed the Financial Supervisory Fund's budget implementation and fiscal management practices. Recent legislative changes to insurance regulations, specifically those creating exemptions for health insurance, injury coverage, and small-value endowment policies, generated considerable debate. The committee also sought detailed information regarding the FSC's anti-fraud initiatives in the financial sector and requested comparative analysis between Taiwan's carbon exchange development targets and Singapore's established environmental market infrastructure.
Following the extensive inquiry, Financial Supervisory Commission Chairperson Peng Jin-lung (彭金隆) and his senior leadership team responded to the committee's wide-ranging concerns, committing to furnish supplementary written documentation on unresolved matters. Finance and Economic Committee Convener Shih Chin-fang (施錦芳) concluded the session by emphasizing the broader purpose behind the rigorous examination. Shih noted that these oversight activities were designed to provide the Control Yuan with comprehensive understanding of the FSC's strategic direction and regulatory philosophy, ultimately supporting Taiwan's objective of cultivating a financial marketplace that balances robust security measures with innovation-friendly policies. ◼
