In addition to launching the “Corporate Governance 3.0 – Sustainable Development Roadmap” on August 25 earlier this year, the Financial Supervisory Commission (FSC) is currently developing a roadmap for the capital market, in response to capital market developments and the three main trends of ESG, digital technologies, and an aging society. To forge a forward-looking and globally competitive capital market, the new roadmap aims to create an ecosystem for market participants to achieve shared wellbeing and prosperity, thereby fulfilling the vision of a fair, efficient, diverse, and internationalized capital market with a focus on innovation and openness. In its commitment to enhancing sound market development, safeguarding investors, and maintaining orderly markets, the FSC is currently laying out the major strategies, key items, and related specific measures under the 3-year Capital Market Roadmap, focusing on the four main objectives of “sustainable development,” “financial inclusion,” “enhanced competitiveness,” and “investor protection.” The roadmap, expected to be rolled out by the end of this year, seeks to enhance capital market functions and stimulate Taiwan’s economic growth.

The FSC’s Capital Market Roadmap will serve as reference for policymaking. To achieve the four main objectives, the roadmap currently includes five major strategies and 25 key items as follows:

 

I. Strengthen primary market functions to support real economic development: 

Establish new innovation board, optimize IPO and SPO financing regulations, enhance supervision and information transparency of TWSE/TPEx-listed companies, expand responsibilities and management of securities market specialists, and improve audit quality.

II. Activate the market and increase efficiency and liquidity:

Promote intraday odd lot trading, develop market-making system, enhance clearing and settlement fund system, improve market transparency and investor risk management, and establish investment-friendly taxation.

III. Attract domestic and foreign investment and improve international visibility:

Improve convenience and efficiency for foreign investment, promote Taiwan capital market and strengthen international cooperation, increase investor protection and education, continue to attract domestic capital, and achieve status of QCCP under Basel III framework.

IV. Boost functions and competitiveness of financial intermediaries:

Integrate fintech to promote digital transformation and RegTech, support securities firms to develop investment banking in line with international trends, encourage expanded operations of investment trust and consulting, stimulate development in futures operations, enhance information security, and cultivate financial professionals.

V. Encourage financial innovation and product diversity:

Establish sustainability market, expand scope of asset management, set up central clearing system for OTC derivatives, and promote the development of diverse financial products for securities and futures markets.

Regarding the specific measures and timeline of the five major strategies and 25 key items, the FSC will be working with the Taiwan Stock Exchange, Taipei Exchange, Taiwan Depository and Clearing Corporation, and Taiwan Futures Exchange, as well as the Securities and Futures Institute, Securities and Futures Investors Protection Center, and other associated agencies to convene strategic working groups dedicated to rolling out the Capital Market Roadmap by the end of this year, in order to achieve the objectives of sustainable development, financial inclusion, enhanced competitiveness, and investor protection, thereby ensuring the continued prosperity of our capital markets.

 

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