Taiwan regulator issues norms on information sharing among financial companies

Taiwan's Financial Supervisory Commission issued guidelines for the sharing of information among financial institutions.

The financial regulator said the guidelines, which were adopted in December 2021, apply to financial holding company groups, financial groups not owned by a financial holding company, as well as financial institutions that do not fall in either of the prior categories, according to a Feb. 14 release.

Under the guidelines, financial institutions that share information among themselves must first establish internal control rules, get them approved by the board of directors and post their privacy policy on their website.

Only financial holding company groups and financial groups not owned by a financial holding company may share information for the purpose of risk identification and risk control, while all financial institutions may conduct information sharing in order to provide customers convenience, engage in business cooperation or establish business cooperation relationships, the regulator said. In all scenarios, the companies must obtain customers' consent and safeguard customer interests.

The regulator said the new guidelines aim to respond to financial technology development, provide customers with greater convenience, bring about better risk control by financial institutions, as well as spur increased cooperation among financial institutions.