Taiwan’s FSC Introduces Procedures to Strengthen Financial Institutions’ Independent-Director Investigations

Taiwan’s Financial Supervisory Commission is requiring independent directors at banks and other financial institutions to strengthen their oversight and checks on management as part of efforts to improve corporate governance. The new framework seeks to prevent independent directors from merely endorsing executives or acting as management’s protectors. It also establishes formal intervention and reporting mechanisms for major incidents and whistleblower complaints, strengthening board accountability and risk controls.

The FSC established the new operating procedures in February 2026, specifying three major forms of regulatory assistance, including the provision of information, and three major investigative duties for independent directors. When a financial institution experiences a major incident or receives a whistleblower complaint, its independent directors must launch an investigation under the procedures, establish the facts and report to the FSC, allowing the regulator to track the case’s progress and outcome.