Financial Supervisory Commission Chairman Huang Tien-Mu resigns on May 19: Ending a forty-year career in financial regulation.

During Huang Tien-mu's tenure as the Chairman of the Financial Supervisory Commission (FSC) in Taiwan, the FSC made significant regulatory adjustments and policy announcements in the cryptocurrency field. In 2021, the FSC implemented stricter regulatory measures for cryptocurrency exchanges, including mandatory compliance with anti-money laundering (AML) and know-your-customer (KYC) regulations. Additionally, the FSC enhanced monitoring of virtual currencies to prevent related financial crimes and safeguard investor interests. As part of Taiwan's anti-fraud policy, the FSC will introduce new regulations, holding unregistered exchanges criminally liable. Huang Tien-mu is set to step down on May 19, where he reflected on his tenure at the FSC and his forty-year career in financial regulation.

Huang Tianmu's Last Appearance at the Finance Committee

Financial Supervisory Commission (FSC) Chairman Huang Tianmu will officially step down on May 19, ending his four-year term as chairman and a forty-year career in financial regulatory affairs. On May 15, he attended the Legislative Yuan's Finance Committee, marking his last appearance at the committee during his tenure. Lawmakers expressed their well wishes and some even hoped that Huang Tianmu would "come back" in the future.

Finance Committee Reviews Multiple Bills, Initial Reviews Passed

According to reports, the Finance Committee reviewed amendments to certain articles of the "Securities Investment Trust and Consulting Act" and the "Real Estate Securitization Act." Ultimately, under the resolution of DPP Convener Guo Guowen, the bills passed the initial review and were sent to the plenary for discussion, while some articles were referred to party negotiations before being reported to the plenary.

REITs Investment Dispute: Should Social Housing be Included?

During the review process, lawmakers focused on the amendment to Article 49-3 of the "Securities Investment Trust and Consulting Act." This article prohibits Real Estate Investment Trusts (REITs) from investing in residential properties designated by housing regulations, including social housing. Some lawmakers argued that social housing should not be excluded. DPP lawmaker Wang Shijian pointed out that social housing is an important part of social welfare and relief efforts and should have increased financial participation.

In response, Huang Tianmu explained that REITs primarily invest in commercial and profit-potential real estate. Allowing them to invest in social housing could raise concerns about housing price fluctuations. He stated that opening up funding sources to invest in residential or social housing could impact housing price stability, hence he maintained a cautious stance.

However, Wang Shijian countered that social housing has never been seen as a speculative target, and local governments have invested significant time and resources in building social housing. Allowing REITs to invest would help expand construction. In the end, no clear conclusion was reached on this article, and it was left for party negotiations.

Huang Tianmu's Four-Year Term, the Longest Chairmanship

According to reports, Huang Tianmu took office as FSC Chairman in May 2020, becoming the longest-serving chairman to date. During his four-year term, he faced major events such as the outbreak of COVID-19, the controversy over pandemic insurance policies in the property and casualty insurance industry, and the alignment of the life insurance industry with new regulations by 2026.

In the pandemic insurance policy controversy, the property and casualty insurance industry suffered losses of 270 billion NTD. Industry players criticized the FSC for not considering changes in pandemic policies, succumbing to populism and pressure from lawmakers, leading to uncontrolled claims. Moreover, issues related to the adoption of the two major international systems, IFRS17 and ICS, in the life insurance industry also sparked discontent, with some companies feeling burdened disproportionately due to the FSC's lack of consideration for differences in company sizes.

In response, Huang Tianmu acknowledged the significant costs incurred in the pandemic insurance policy incident, but he emphasized that the decisions made at the time had their own context and processes, making it inappropriate to evaluate them now. He stressed that financial regulation is not about pleasing everyone, and any decision will affect stakeholders' interests.

Huang Tianmu: No Regrets in Term of Office

Huang Tianmu mentioned that May 13 was his last time presiding over the FSC's business meeting, where he told all the department heads that he had "no regrets." He noted that the chairman's term was fraught with uncertainties, so since taking office, he had worked every day as if it were his last, diligently fulfilling his responsibilities to ensure financial stability and promote financial development.

Regarding his plans after stepping down, Huang Tianmu stated that he would first return home to spend time with his family. However, he also mentioned that his superiors reminded him not to remain idle at home for too long, so he might come out to contribute to society after a period of rest.

An academic taking the helm, National Chengchi University professor Peng Jinlong emerges as the new FSC chairman.