Financial Investor Consumers Protection Act Proposed to Set up Special Resolution Body for Dispute over Non-securities, Non-futures Small-value Investments of Not More Than TWD1.5M Each.

Financial Supervisory Commission (FSC) proposed the draft Financial Investor Consumers Protection Act to replace the draft Financial Services Act previously proposed yet denied by the Executive Yuan.  The new proposed Act focuses on the resolution of disputes over financial investments in commodities other than stocks and futures.  The FSC is proposes to set up a special body to arbitrate disputes arising from small investments with a value of TWD1.5M or less each by reference to the Financial Ombudsman Service of England (FOS).  In contrast, the denied Financial Services Act was proposed for the purpose of resolving investor consumer complaints, encouraging financial innovations and strengthening financial risk management.    

According to the FSC, among the various financial reform programs the US government has put in place due to the most recent financial crisis is the establishment of a special financial consumer dispute resolution body.  Given, the increasing number of investment consumer disputes rises in the aftermath of the global financial crisis and the collapse of structured notes, it is time that a special body be set up to deal with financial consumer disputes resolution.

In addition to a special dispute resolution body, the proposed Act will be the legal authority to establish a financial consumer dispute review board.  Both institutions will be in charge of dealing with consumer disputes arising from investments in structured notes, trusts, and derivative commodities.  The fund to set up the special dispute resolution body will, by reference to the FOS, mainly come from the annual fees paid by financial institutions and the fees paid on requests for dispute resolution.  (2010.08)
/EMA