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2026-08-19

Added 2026-08-20 · Updated 2026-09-04

Draft Amendment to Articles 4 and 7 of the Qualification and Appointment Regulations for Credit Union Member Representatives, Directors, Supervisors, and Managers

The draft amendment removes Article 4, Paragraph 1, Item 5 and Article 7, Item 7 of the Qualification and Appointment Regulations for Credit Union Member Representatives, Directors, Supervisors, and Managers. These deletions eliminate the disqualification criteria for individuals convicted of crimes other than those specifically listed in the remaining items, aligning credit union leadership eligibility requirements with those of other financial institutions such as banks, securities firms, and insurance companies.

Taiwan

Financial Supervisory Commission Taiwan

Draft General Explanation for the Amendment of Articles 4 and 7 of the "Qualification and Appointment Regulations for Credit Union Member Representatives, Directors, Supervisors, and Managers"

The "Qualification and Appointment Regulations for Credit Union Member Representatives, Directors, Supervisors, and Managers" (hereinafter referred to as these Regulations) were promulgated on December 8, Year 84 (2005), and came into effect on June 30, Year 85 (2006), pursuant to the authorization of Paragraph 5, Article 16 of the Credit Union Act. These Regulations have undergone twelve amendments, with the most recent promulgation date being October 26, Year 109 (2020).

This amendment involves the revision of two articles. The revision considers that the qualification standards for the heads of financial institutions such as banks, financial holding companies, trust companies, bill companies, specialized electronic payment institutions, securities firms, and insurance companies do not include crimes other than those listed in the respective items as negative qualifications. To align the negative qualification conditions for criminal offenses by credit union heads with those of other types of financial institutions, Items 5 of Paragraph 1 of Article 4 and Item 7 of Article 7 of these Regulations are hereby deleted.

Comparison Table of Draft Revised Articles and Current Articles for the "Qualification and Appointment Regulations for Credit Union Member Representatives, Directors, Supervisors, and Managers" Amendment of Articles 4 and 7

Revised Articles	Current Articles	Explanation
Article 4 Persons with any of the following circumstances shall not be registered as candidates for member representatives:<br><br>1. Those without capacity for civil conduct, with limited capacity for civil conduct, or under guardianship whose guardianship has not yet been revoked.<br><br>2. Those who have been convicted of forgery of currency, forgery of securities, embezzlement, fraud, breach of trust, corruption, usury, or crimes stipulated in the Organized Crime Prevention Act, sentenced to fixed-term imprisonment or heavier penalties, and the sentence has not yet been fully executed, or has been fully executed, probation period has expired, or pardoned, and less than five years have passed.<br><br>3. Those who have been convicted of forgery of documents, crimes against creditor rights, or violations of the Company Act or Commercial Accounting Act, sentenced to fixed-term imprisonment, and the sentence has not yet been fully executed, or has been fully executed, probation period has expired, or pardoned, and less than five years have passed.<br><br>4. Those who have violated this Act, the Bank Act, the Financial Holding Company Act, the Trust Act, the Bill Financial Management Act, the Financial Asset Securitization Act, the Real Estate Securitization Act, the Insurance Act, the Securities and Exchange Act, the Futures Trading Act, the Investment Trust and Advisory Act, the Foreign Exchange Control Act, the Agricultural Finance Act, or the Anti-Money Laundering Act, and have been sentenced to imprisonment, and the sentence has not yet been fully executed, or has been fully executed, probation period has expired, or pardoned, and less than five years have passed.<br><br>5. Those who have been convicted of crimes other than those listed in Items 2 through 4, sentenced to fixed-term imprisonment or heavier penalties, and the sentence has not yet been executed or fully executed. However, this does not apply to those who have been granted probation or have completed execution by paying a fine.<br><br>6. Those who have been subject to a final ruling for security measures or training detention, or have been sentenced to compulsory labor for theft or handling stolen goods, and the sentence has not yet been executed, is not yet fully executed, or less than five years have passed since completion.<br><br>7. Those who have been dismissed, removed, or dismissed from office by the competent authority or the credit union for violating this Act, the Bank Act, the Financial Holding Company Act, the Trust Act, the Bill Financial Management Act, the Financial Asset Securitization Act, the Real Estate Securitization Act, the Cooperative Act, the Insurance Act, the Securities and Exchange Act, the Futures Trading Act, the Investment Trust and Advisory Act, the Agricultural Finance Act, the Farmers' Association Act, the Fishermen's Association Act, or other financial management laws, or the credit union's articles of association, and less than five years have passed.<br><br>8. Those who have been declared bankrupt and have not yet been restored to rights.<br><br>9. Those who served as heads of legal persons when they were declared bankrupt, and less than five years have passed since the conclusion of bankruptcy or the settlement agreement has not been fulfilled.<br><br>10. Those whose use of negotiable instruments has been refused and has not yet been restored.<br><br>11. Those who have a record of delay in principal or interest payments for more than three months in credit facilities at financial institutions within the past three years; or have guarantee debts to financial institutions and have failed to repay for more than three months after being notified.<br><br>12. Those who are members of other credit unions within the same business area.<br><br>For non-profit legal persons as members, when elected as member representatives, the natural person designated to represent them in exercising duties shall apply the provisions of Paragraph 2 of the preceding Article and this Paragraph mutatis mutandis.	Article 4 Persons with any of the following circumstances shall not be registered as candidates for member representatives:<br><br>1. Those without capacity for civil conduct, with limited capacity for civil conduct, or under guardianship whose guardianship has not yet been revoked.<br><br>2. Those who have been convicted of forgery of currency, forgery of securities, embezzlement, fraud, breach of trust, corruption, usury, or crimes stipulated in the Organized Crime Prevention Act, sentenced to fixed-term imprisonment or heavier penalties, and the sentence has not yet been fully executed, or has been fully executed, probation period has expired, or pardoned, and less than five years have passed.<br><br>3. Those who have been convicted of forgery of documents, crimes against creditor rights, or violations of the Company Act or Commercial Accounting Act, sentenced to fixed-term imprisonment, and the sentence has not yet been fully executed, or has been fully executed, probation period has expired, or pardoned, and less than five years have passed.<br><br>4. Those who have violated this Act, the Bank Act, the Financial Holding Company Act, the Trust Act, the Bill Financial Management Act, the Financial Asset Securitization Act, the Real Estate Securitization Act, the Insurance Act, the Securities and Exchange Act, the Futures Trading Act, the Investment Trust and Advisory Act, the Foreign Exchange Control Act, the Agricultural Finance Act, or the Anti-Money Laundering Act, and have been sentenced to imprisonment, and the sentence has not yet been fully executed, or has been fully executed, probation period has expired, or pardoned, and less than five years have passed.<br><br>5. Those who have been convicted of crimes other than those listed in Items 2 through 4, sentenced to fixed-term imprisonment or heavier penalties, and the sentence has not yet been executed or fully executed. However, this does not apply to those who have been granted probation or have completed execution by paying a fine.<br><br>6. Those who have been subject to a final ruling for security measures or training detention, or have been sentenced to compulsory labor for theft or handling stolen goods, and the sentence has not yet been executed, is not yet fully executed, or less than five years have passed since completion.<br><br>7. Those who have been dismissed, removed, or dismissed from office by the competent authority or the credit union for violating this Act, the Bank Act, the Financial Holding Company Act, the Trust Act, the Bill Financial Management Act, the Financial Asset Securitization Act, the Real Estate Securitization Act, the Cooperative Act, the Insurance Act, the Securities and Exchange Act, the Futures Trading Act, the Investment Trust and Advisory Act, the Agricultural Finance Act, the Farmers' Association Act, the Fishermen's Association Act, or other financial management laws, or the credit union's articles of association, and less than five years have passed.<br><br>8. Those who have been declared bankrupt and have not yet been restored to rights.<br><br>9. Those who served as heads of legal persons when they were declared bankrupt, and less than five years have passed since the conclusion of bankruptcy or the settlement agreement has not been fulfilled.<br><br>10. Those whose use of negotiable instruments has been refused and has not yet been restored.<br><br>11. Those who have a record of delay in principal or interest payments for more than three months in credit facilities at financial institutions within the past three years; or have guarantee debts to financial institutions and have failed to repay for more than three months after being notified.<br><br>12. Those who are members of other credit unions within the same business area.<br><br>For non-profit legal persons as members, when elected as member representatives, the natural person designated to represent them in exercising duties shall apply the provisions of Paragraph 2 of the preceding Article and this Paragraph mutatis mutandis.	Considering that the qualification standards for the heads of financial institutions such as banks, financial holding companies, trust companies, bill companies, specialized electronic payment institutions, securities firms, and insurance companies do not include crimes other than those listed in the respective items as negative qualifications, Item 5 of Paragraph 1 is hereby deleted, and the remaining items are shifted accordingly.
Article 7 Persons with any of the following circumstances shall not be registered as candidates for directors or supervisors:<br><br>1. Those without capacity for civil conduct, with limited capacity for civil conduct, or under guardianship whose guardianship has not yet been revoked.<br><br>2. Those who have been convicted of crimes stipulated in the Organized Crime Prevention Act, and a guilty verdict has become final.<br><br>3. Those who have been convicted of forgery of currency, forgery of securities, embezzlement, fraud, or breach of trust, sentenced to fixed-term imprisonment, and the sentence has not yet been fully executed, or has been fully executed, probation period has expired, or pardoned, and less than ten years have passed.<br><br>4. Those who have been convicted of corruption, sentenced to imprisonment, and the sentence has not yet been fully executed, or has been fully executed, probation period has expired, or pardoned, and less than five years have passed.<br><br>5. Those who have been convicted of forgery of documents, infringement of secrecy, usury, crimes against creditor rights, or violations of the Tax Collection Act, Trademark Act, Patent Act, Company Act, or Commercial Accounting Act, sentenced to fixed-term imprisonment, and the sentence has not yet been fully executed, or has been fully executed, probation period has expired, or pardoned, and less than five years have passed.<br><br>6. Those who have violated this Act, the Bank Act, the Financial Holding Company Act, the Trust Act, the Bill Financial Management Act, the Financial Asset Securitization Act, the Real Estate Securitization Act, the Insurance Act, the Securities and Exchange Act, the Futures Trading Act, the Investment Trust and Advisory Act, the Foreign Exchange Control Act, the Agricultural Finance Act, or the Anti-Money Laundering Act, and have been sentenced to imprisonment, and the sentence has not yet been fully executed, or has been fully executed, probation period has expired, or pardoned, and less than five years have passed.<br><br>7. Those who have been convicted of crimes other than those listed in Items 2 through 6, sentenced to fixed-term imprisonment or heavier penalties, and the sentence has not yet been executed or fully executed. However, this does not apply to those who have been granted probation, pardoned, or sentenced to fixed-term imprisonment of six months or less and have completed execution.<br><br>8. Those who have been subject to a final ruling for security measures or training detention, or have been sentenced to compulsory labor for theft or handling stolen goods, and the sentence has not yet been executed, is not yet fully executed, or less than ten years have passed since completion.<br><br>9. Those who have been ordered to be replaced or removed by the competent authority for violating this Act, the Bank Act, the Financial Holding Company Act, the Trust Act, the Bill Financial Management Act, the Financial Asset Securitization Act, the Real Estate Securitization Act, the Cooperative Act, the Insurance Act, the Securities and Exchange Act, the Futures Trading Act, the Investment Trust and Advisory Act, the Agricultural Finance Act, or other financial management laws, and less than five years have passed.<br><br>10. Those who are under suspension of duties by the competent authority.<br><br>11. Those who have been declared bankrupt and have not yet been restored to rights.<br><br>12. Those who served as heads of legal persons when they were declared bankrupt, and less than five years have passed since the conclusion of bankruptcy or the settlement agreement has not been fulfilled.<br><br>13. Those whose use of negotiable instruments has been refused and has not yet been restored, or who have records of insufficient funds checks within three years after restoration.<br><br>14. Those who have a record of delay in principal or interest payments for more than three months in credit facilities at financial institutions within the past three years; or have guarantee debts to financial institutions and have failed to repay for more than three months after being notified.<br><br>15. Those with other major circumstances of loss of creditworthiness that have not yet been resolved, or less than five years have passed since resolution.<br><br>16. Those with facts proving engagement in or involvement in other dishonest or improper activities, indicating their unsuitability to serve as heads of credit unions.<br><br>17. Those who are members of other credit unions within the same business area.	Article 7 Persons with any of the following circumstances shall not be registered as candidates for directors or supervisors:<br><br>1. Those without capacity for civil conduct, with limited capacity for civil conduct, or under guardianship whose guardianship has not yet been revoked.<br><br>2. Those who have been convicted of crimes stipulated in the Organized Crime Prevention Act, and a guilty verdict has become final.<br><br>3. Those who have been convicted of forgery of currency, forgery of securities, embezzlement, fraud, or breach of trust, sentenced to fixed-term imprisonment, and the sentence has not yet been fully executed, or has been fully executed, probation period has expired, or pardoned, and less than ten years have passed.<br><br>4. Those who have been convicted of corruption, sentenced to imprisonment, and the sentence has not yet been fully executed, or has been fully executed, probation period has expired, or pardoned, and less than five years have passed.<br><br>5. Those who have been convicted of forgery of documents, infringement of secrecy, usury, crimes against creditor rights, or violations of the Tax Collection Act, Trademark Act, Patent Act, Company Act, or Commercial Accounting Act, sentenced to fixed-term imprisonment, and the sentence has not yet been fully executed, or has been fully executed, probation period has expired, or pardoned, and less than five years have passed.<br><br>6. Those who have violated this Act, the Bank Act, the Financial Holding Company Act, the Trust Act, the Bill Financial Management Act, the Financial Asset Securitization Act, the Real Estate Securitization Act, the Insurance Act, the Securities and Exchange Act, the Futures Trading Act, the Investment Trust and Advisory Act, the Foreign Exchange Control Act, the Agricultural Finance Act, or the Anti-Money Laundering Act, and have been sentenced to imprisonment, and the sentence has not yet been fully executed, or has been fully executed, probation period has expired, or pardoned, and less than five years have passed.<br><br>7. Those who have been convicted of crimes other than those listed in Items 2 through 6, sentenced to fixed-term imprisonment or heavier penalties, and the sentence has not yet been executed or fully executed. However, this does not apply to those who have been granted probation, pardoned, or sentenced to fixed-term imprisonment of six months or less and have completed execution.<br><br>8. Those who have been subject to a final ruling for security measures or training detention, or have been sentenced to compulsory labor for theft or handling stolen goods, and the sentence has not yet been executed, is not yet fully executed, or less than ten years have passed since completion.<br><br>9. Those who have been ordered to be replaced or removed by the competent authority for violating this Act, the Bank Act, the Financial Holding Company Act, the Trust Act, the Bill Financial Management Act, the Financial Asset Securitization Act, the Real Estate Securitization Act, the Cooperative Act, the Insurance Act, the Securities and Exchange Act, the Futures Trading Act, the Investment Trust and Advisory Act, the Agricultural Finance Act, or other financial management laws, and less than five years have passed.<br><br>10. Those who are under suspension of duties by the competent authority.<br><br>11. Those who have been declared bankrupt and have not yet been restored to rights.<br><br>12. Those who served as heads of legal persons when they were declared bankrupt, and less than five years have passed since the conclusion of bankruptcy or the settlement agreement has not been fulfilled.<br><br>13. Those whose use of negotiable instruments has been refused and has not yet been restored, or who have records of insufficient funds checks within three years after restoration.<br><br>14. Those who have a record of delay in principal or interest payments for more than three months in credit facilities at financial institutions within the past three years; or have guarantee debts to financial institutions and have failed to repay for more than three months after being notified.<br><br>15. Those with other major circumstances of loss of creditworthiness that have not yet been resolved, or less than five years have passed since resolution.<br><br>16. Those with facts proving engagement in or involvement in other dishonest or improper activities, indicating their unsuitability to serve as heads of credit unions.<br><br>17. Those who are members of other credit unions within the same business area.	Considering that the qualification standards for the heads of financial institutions such as banks, financial holding companies, trust companies, bill companies, specialized electronic payment institutions, securities firms, and insurance companies do not include crimes other than those listed in the respective items as negative qualifications, Item 7 is hereby deleted, and the remaining items are shifted accordingly.