The Securities and Futures Investor Protection Centre (SFIPC) in Taiwan has just released its latest annual report. Those interested can read it here:
However, I would encourage those interested in investor protection to visit its website here where they can learn about all the things that SFIPC does and what it has achieved: https://www.sfipc.org.tw/en/
Two years ago, I had the privilege of visiting SFIPC to learn about them and to exchange views on investor protection and rights: https://www.sfipc.org.tw/en/News_Content.aspx?n=7621&s=12345
I spoke with the Chairperson and senior staff.
Taiwan has the most robust publicly-funded investor protection scheme I am aware of. The extensive powers of the SFIPC and its willingness to take action on behalf of minority investors against those responsible for breaches is truly impressive. It is prepared to take on cases where it may not win – and it does indeed lose some cases.
Singapore and Malaysia are considering launching publicly-funded investor protection funds. The SFIPC is the benchmark although it may take time to reach the standards that the SFIPC has set.
During my visit, I also met officials from the two stock exchanges. I think the way Taiwan thought about the legal structure and regulatory framework of the stock exchanges, and its understanding of the importance of investor protection as the foundation of a robust capital market, is something that markets that are at the beginning of their journey in developing their own capital market can learn much from.
I hope to visit Taiwan again in the near future and learn about recent developments at the SFIPC and the Taiwan capital market.
