FSC clarifies virtual bank board rules

CONFLICTS OF INTEREST: Local banking executives of sections that do not overlap with the operations of Web-only banks can serve on their boards, the commission said

Taipei Times
Date: Sep 11, 2019
By: Kao Shih-ching  /  Staff reporter

Financial Supervisory Commission (FSC) Chairman Wellington Koo (顧立雄) yesterday reiterated that bank executives cannot concurrently serve as directors or supervisors at virtual banks, after Mega International Commercial Bank (兆豐銀行) reportedly protested that it could not appoint its own officials to sit on the board of Next Bank (將來銀行).

Koo said that local and foreign banks with local operations cannot appoint their chairpersons, general managers or ranking managers to sit on the boards of virtual banks in which they invest.

However, financial conglomerates that own the banks could send their directors and general managers to the Web-only banks’ boards, as there is no direct conflict of interest, he said.    [FULL  STORY]

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