It was created on 1 July 2004 to unify several previously separate regulatory authorities which separately supervised different sectors of the finance industry.[3] Prior to the actual creation of the commission, several alternative structures for regulatory agency reform had been proposed, including a purely non-governmental commission, as well as the establishment of both a governmental regulatory agency and non-governmental supervisory commission; the choice of a purely governmental commission was finalized in 2003 by the Legislative Yuan.[4]
The reasons for the creation of the FSC as an umbrella independent financial regulator was due to:[5]
Financial convergence and cross-market business - market has evolved and became more complex to manage
Single financial regulator - one stop shop for regulating all securities and investments.
Independent Authority at Cabinet Level - experts in their field without political interference
Stronger Law Enforcement - cross referencing cases and building stronger case for misconduct
The commission has faced frequent changes in leadership in its short history, due to scandals and crises which began when its first chairperson was removed from his position due to corruption.[6]
^Hwang, Dar-Yeh; Wu Wei-Hsiung (2006-09-15). "Financial System Reform in Taiwan"(PDF). JAE Conference on Financial System Reform and Monetary Policies in Asia. The Journal of Asian Economics. Archived from the original(PDF) on 2011-05-29. Retrieved 2007-07-05.
