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Financial Cybersecurity in Taiwan: New Measures and Hefty Penalties

 In a strategic move to fortify national cybersecurity, the Taiwan Stock Exchange (TWSE), in collaboration with the Financial Supervisory Commission, has initiated a comprehensive set of regulations and measures. This action is catalyzed by the increasing prevalence of information security issues within both enterprises and the financial sector.

The TWSE, as part of this initiative, has orchestrated the formation of a dedicated 'Interdepartmental Cybersecurity Task Force.' Concurrently, key regulations have been amended to reinforce the framework of information security. These include the 'Regulations Governing Information to be Published in Annual Reports of Public Companies' and the 'Establishing Information Security Inspection Mechanisms for Securities Firms.'

Five principal measures have been introduced to strengthen cybersecurity management. Firstly, the allocation of human resources for cybersecurity risk control is emphasized, encouraging firms to establish appropriate internal controls to mitigate potential threats. Secondly, the TWSE has released guidelines for cybersecurity management control for listed companies.

Thirdly, securities firms fulfilling specific conditions are mandated to assign a deputy general manager or an equivalent authority as the 'Chief Information Security Officer.' Fourthly, an immediate public disclosure policy is being enforced. Any significant cybersecurity event must be promptly reported, detailing the cause, potential losses, improvements, and countermeasures. In case of substantial financial losses, a press conference is required to communicate the situation to the public.

Finally, to foster a collective defense, listed companies and securities firms are encouraged to share cybersecurity information. In the event of a major cybersecurity incident, they are required to report and share information according to the 'Information Sharing Management Measures.'

Violators of these regulations face a hefty penalty, with fines reaching up to 5 million New Taiwan Dollars. The introduction of these stringent measures marks a significant step towards reinforcing the digital fortress of Taiwan's financial sector.

ActionDescription
Formation of Task ForceInterdepartmental Cybersecurity Task Force will be established by the TWSE
Revision of Regulations
  1. Regulations Governing Information to be Published in Annual Reports of Public Companies
  2. Establishing Information Security Inspection Mechanisms for Securities Firms
Cybersecurity Management Measures
  1.  Allocaton of human resources for cybersecurity risk control
  2. Release of guidelines for cybersecurity management control for listed companies
  3. Mandating securities firms to assign a 'Chief Information Security Officer,'
  4. Enforcement of immediate public disclosure policy,
  5. Encouragement of cybersecurity information sharing.
Penalty for Non-complianceImposition of fines up to 5 million NTD for violators of the new regulations

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