News Report: FSC Chairman Huang Tien-mu May Step Down Due to Sheraton Luncheon Incident, to be Replaced by New Face
According to sources cited by New News, senior officials from the Presidential Office, who were previously undecided on whether to reappoint FSC Chairman Huang Tien-mu, seem to have made a decision following the Sheraton Luncheon incident last month.
The sources revealed that Huang Tien-mu may be forced to step down as a result, and a new, young face who has never been reported by the media will take up the position. The new FSC Chairman is expected to bring a fresh perspective and serve as a highlight in Premier Su Tseng-chang’s cabinet.
At 66 years old, Huang Tien-mu is currently the longest-serving FSC Chairman, having served for 3 years and 11 months. He is also the only FSC Chairman in the past 20 years to have supervised all four bureaus under the FSC (Banking Bureau, Insurance Bureau, Securities and Futures Bureau, and Inspection Bureau).
The sources further stated that the new FSC Chairman will face three major tasks, including resolving the integration of the life insurance industry into international systems, revising financial penalties, and combating financial fraud.
Integration of life insurance: Ensuring that the 21 domestic life insurance companies, which vary greatly in nature and scale, can effectively comply with and integrate with the two international systems IFRS17 and ICS.
Revision of financial penalties: Adjusting the means of inspecting and penalizing financial crimes, rather than solely imposing large fines that indirectly affect shareholders.
Fight against financial fraud: Effectively curbing financial fraud and other criminal activities within the next one to one and a half years.
It is understood that during the luncheon held at Sheraton on March 26, the Legislative Yuan Finance Committee convener Luo Ming-cai intervened and requested the FSC Insurance Bureau to invite life insurance company chairpersons to have lunch with members of the Legislative Yuan. During the banquet, there were even instances of networking between politicians and business figures.
The above content was confirmed during the Legislative Yuan Finance Committee’s questioning on April 1 from 11:04 am to 11:08 am, raising doubts about the independence of the FSC and its suitability in carrying out regulatory responsibilities:
From the perspective of the FSC, the convener requested us to arrange for (life insurance companies) to meet with the new members of the Finance Committee. Regarding this opinion, I believe we should try our best to handle it.
As FSC Chairman, Huang Tien-mu’s prior knowledge and assistance in organizing the luncheon were seen as inappropriate interference. On one hand, it exposed the possible issues in the relationship between the FSC and political figures, and on the other hand, it damaged public trust in the FSC, becoming one of the catalysts for Huang Tien-mu’s resignation.
Last month, Huang Tien-mu revealed that the FSC plans to propose a special law for cryptocurrencies in September of this year. The aim is to more effectively regulate the cryptocurrency market and ensure that investors are protected from fraud risks.
(
FSC Chairman announces plan to propose cryptocurrency law in September, could Taiwanese investors have a “Bitcoin ETF”?
)
Now, as the end of President Tsai Ing-wen’s term approaches, the reshuffling of personnel within the FSC is bound to affect the enactment of cryptocurrency-related legislation.
However, with the establishment of the Taiwan Virtual Currency Commercial Association and the previous recruitment announcement by the FSC’s Securities and Futures Bureau, it is clear that the FSC is addressing the rapidly developing cryptocurrency field and is working on countermeasures to face the emerging regulatory challenges.
Taiwan cryptocurrency legislation
FSC
Huang Tien-mu
Further reading
Taiwanese lawmakers propose national AI warning system to strengthen virtual asset supervision, Executive Yuan to propose anti-fraud law in April
“Buffett’s buyback of TSMC” internet prank on April Fool’s Day sparks international controversy, FSC: Maximum fine of NT$200 million