FSC Proposes 4 Measures to Prevent Illegal Overseas Funds! Will Increase Whistleblower Rewards, Add Warning Zone

In order to promote the importance of investing through legal channels and prevent the public from falling victim to purchasing illegal overseas funds, the Financial Supervisory Commission (FSC) today proposed four measures, hoping to assist investors in utilizing various mechanisms before investing to protect their own rights.

First Measure: Establishment of Investment Warning Zone

The Financial Supervisory Commission (FSC) has set up a list of legal investment consulting firms and a list of legal domestic and foreign funds on its official website for public inquiry. In the future, the FSC will request securities firms, futures companies, and investment consulting associations to establish an investment warning zone on their official websites.

Furthermore, if the FSC receives reports from the public and verifies that there are indeed unapproved foreign funds, the FSC and relevant units will disclose the existence of such funds in the warning zone for public inquiry and warning.

Second Measure: Enhancing Cooperation with the Ministry of Justice to Combat Illegal Activities

When the FSC receives reports from the public regarding illegal foreign funds, if there is concrete evidence, they will not only immediately refer the case to the Investigation Bureau of the Ministry of Justice but also hold meetings with the Ministry of Justice to jointly monitor the progress of the transferred cases to assist law enforcement agencies in promptly cracking down on illegal activities. The investigation results will be announced in a timely manner to remind investors.

Third Measure: Enlisting Financial Institution Financial Planners to Enhance Advocacy

Since financial institution financial planners are in direct contact with customers, they will be asked to help strengthen advocacy to remind customers that investing in foreign funds should be done through legal fund sales institutions. They should also carefully select legal financial institutions when investing in other financial products, avoiding investing in unapproved foreign funds or other financial products to protect their own interests.

Fourth Measure: Considering Increasing Rewards for Reporting to Encourage Public Reporting

Early detection of illegal foreign funds sold in Taiwan relies on public-private cooperation. The FSC will consider increasing rewards for reporting and coordinate with securities and futures peripheral associations to establish a reporting reward system to encourage the public to report illegal activities for the greater good.

The above are the 4 measures proposed by the FSC this time. If you find that illegal operators are selling financial products domestically or conducting financial franchising businesses, you can report it to the anti-fraud hotline 165, or report it through the FSC's public mailbox or by calling the FSC reporting hotline at 02-27373434 or 87734136.

Additionally, if you have investment needs in foreign funds, you can refer to the FSC's 3-step guide to safe investment in foreign funds.