Last year, I visited Taiwan to understand their capital market and especially what they are doing in investor protection. In my previous trips there, I had heard about the Securities and Futures Investor Protection Centre (SFIPC) and the great work they have been doing.
I was very fortunate to be able to meet the Chairman and management of SFIPC, despite my trip being disrupted by the typhoon that led to my visit to their office being postponed. It is even more impressive than I have heard. I shared some of my impressions in an article here: https://bschool.nus.edu.sg/cip/articles/reflections-on-investor-protection-and-capital-market-development-in-taiwan/
I will write a fuller account when I compile a report on investor protection in different markets.
Taiwan had the political will and foresight to set up the SFIPC in 2003 and I believe it has played an important role in the development of the capital market in Taiwan. Other stakeholders I spoke to on my visit, including directors and stock exchange officials, felt that SFIPC has played an important role in ensuring investor confidence. Retail participation in Taiwan is 60% and you do not get this if investors do not trust the market.
There has been talk about improving investor protection and recourse here. I will believe it when I see it but I do not believe we will come anywhere near to what exists in Taiwan.
This morning, SFIPC shared their latest annual report with me. I encourage all those interested in investor protection to read this…and dream on.
