On July 2nd, 2019, in response to the business demand of electronic payment institution, Financial Supervisory Commission (FSC) announced the amendment of Rules Governing the Administration of Electronic Payment Business.

By promulgating 2 new articles and 11 amendments, FSC permit new types of electronic payment institutions, strengthen risk control and personal data protection for electronic payment institutions and improve the ease of people's payment. The main amendments are as follows:

(1) Article 2, Article 20-1 and Article 27

Allow the electronic payment institution to deliver information to users with electronic equipment through the Internet in accordance with provisions, such as the conveyance of information from sellers to buyers informing logistics distribution situations or transaction status.

(2) Article 2, Article 12-1 and Article 24

Allow the electronic payment institution to issue disposable "electronic payment account stored value card". By entering the serial number of the card and other information, people may deposit certain amount in the e-payment account for subsequent consumption payment after purchasing at specific purchase passage, such as convenience store. It also sets out the relevant management regulations and limited the outsourcing of electronic payment institutions when selling e-payment account stored value card.

(3) Article 5-1 and Article 6

When an electronic payment institution and recipient user signs or terminates the contract, the electronic payment institution shall report to the Joint Credit Information Center (JCIC). Where an electronic payment institution accepts a registration application of a non-personal recipient user or a personal recipient user with an average transaction amount in collecting and making payments for real transactions as an agent in excess of NTD 80,000 in the most recent six months, the electronic payment institution shall request information from JCIC and retain related records for reference.

(4) Article 7

Amend the information which shall be included in a user payment instruction. The user name shall be partially hidden and the information provided is allowed to be other sufficient information for the identification of the payor agreed by the payor and the electronic payment institution. For example, the sole proprietorship which is registered in the name of an individual may use ‘OOXX eatery ’ in the payment instruction.

(5) Article 10

Allow the financial institution, convenience store operator, or supermarket operator not being ultimate beneficiary of the fund transfer in which the electronic payment institution collects charges and fees, taxes, and fines on behalf of governments of all levels; service charges on behalf of public utilities; ticket prices and other related service fees on behalf of public transportation enterprises and makes payments for real transactions as an agent.

(6) Article 15

Allow Electronic payment institutions make advances for a user when the amount of payment instructed by the user exceeds the balance in his/her e-payment account in the public transportation or parking lot business.

In March, 2019, Taiwan’s Bureau of Energy (BOE), Ministry of Economic Affairs, announced it will establish a new scheme for solar panel (also known as photovoltaic panel) recycling. Although the scheme is not yet officially settled down, it might be approved at the end of 2019.

1. Background

In consideration of the energy structure in Taiwan, President Tsai Ing-Wen advocates that we must reform the supply chain of energy to reduce global warming and climate change. She noted that our goals are to be nuclear-free and increasing the proportion of green energy to 20% by the year 2025. To reach those goals, the Republic of China (Taiwan) government has devoted countless effort to promote renewable energy since 2016, including the promotion of solar energy. Ever since then, the amount of solar panels triples in Taiwan. However, consequently, the amount of possible solar panel wastes in the nearly decades or, at least, in the incoming few years also looms large and causes great concern.

Most of the solar panels nowadays are mainly composed of crystalline silicon solar cells consisting of monocrystalline silicon, with glass and aluminum frame attached to the edge as well as other components such as copper, tin, zinc, lead, silver, etc. While these solar panels produce electricity from renewable energy, their components are not themselves renewable, unless further action is taken by the government to address this issue. To cope with this emerging problem, BOE claims that it will establish a new scheme for solar panel recycling, aiming to embedding the recycling of solar panels into its supply chains.

2. Details in the Scheme

According to government officials, the new recycling scheme will tightly cling to the Feed-in-Tariff scheme now in practice in Taiwan. A Feed-in-Tariff (FIT) scheme is a policy designed to accelerate investment in renewable energy. Under this scheme, households or system owners can sell the electricity generated from renewable energy back to the public utility at a price stable for decades. Therefore, FIT scheme finances and accelerates the development and commerce in renewable energy.

Under the recycling scheme, any households or system owners who decide to join the Feed-in-Tariff scheme in the future will have to pay in advance a “fixed and unreturnable” amount of fee (NT$1,000 now in plan) per kW according to the registered solar panels in the FIT scheme. This fee, charged by BOE through FIT scheme, will then form a pool of funds which will later be used to subsidize certified recycler plants which specialize in recycling solar panels. Under this scheme, once the solar panels are decommissioned, the households and the system owners can deliver these solar panel wastes to these certified solar panel recycling plants free of charge.

Concerning the fee, according to government officials concerned, BOE for the present time decides that these households and system owners can pay in 10 installments, namely NT$100 (per kW) per year, totaled 10 years.

3. Other Opinions

BOE has taken a strong step toward solar panel recycling. However, some other opinions suggest that this “fixed and unreturnable” fee might be an obstacle to the incentive of the producers to invent more recyclable solar panels since the consumers will lack the incentive to purchase more expensive yet highly recyclable solar panels in the market under this “fixed and unreturnable” fee. Under such market condition, the producers will have less incentive to financing and designing recyclable solar panels.

On April 26, 2018, the Financial Supervisory Commission (FSC) announced a policy for internet-only bank establishment in Taiwan. The seven main points of policy are: 1. Minimum paid-in capital requirement; 2. Number of new establishment; 3. Scope of business: same as a conventional commercial bank; 4. Requirements of founders; 5. Fit and proper requirement for major shareholders; 6. Principle of supervision; 7. Physical presence.

Following the policy for internet-only bank establishment, the FSC announced “Standards Governing the Establishment of Commercial Banks” and “Regulations Governing Investments in Other Enterprises by Commercial Banks” on November 14, 2018, which have taken effect since November 16, 2018 while the FSC started to accept applications for setting up internet-only banks. The four main points of amendments are: 1.Capital and finance requirement; 2.Requirements of founders; 3.Physical presence; 4.Business plan.

After making the policy announcement and two decrees for internet-only bank establishment last year, the FSC has granted licenses to three consortiums on July 30, 2019. Three internet-only bank establishment licenses were issued to Next Commercial Bank (led by Chunghwa Telecom), LINE Financial Taiwan (led by LINE Group and including Taipei Fubon Commercial Bank and Standard Chartered), and Rakuten International Commercial Bank (operated by Rakuten Inc and Taiwan’s IBF Financial Holdings).

However, the announcement of licenses granted surprised many, as the commission had said earlier that it planned to only approve two licenses to reduce competition, but believes there is space for virtual bank in Taiwan, and the three banks had different business models and target customers. Besides, Singapore has granted internet-only licenses to eight groups, while Hong Kong issued five. Considering that the experiences of other nations have been granting more licenses to internet-only banks, three licenses would be acceptable.

The nine-person review panel of the FSC determined that the three banks would offer more convenience to consumers and improve financial technology, as well as to deepen financial inclusion in order to meet the needs of young generation consumers, and exert the catfish effect through new business models and technologies.

The three banks are expected to build a risk management and data protection system, implement their business plans and commitments, including financial support, and begin operations in 8 to 20 months, and to turn a profit in three years to five years. Also, the FSC would ban internet-only banks from setting unreasonably low fees, which would disrupt the market order.

The FSC will cooperate with the Central Bank to strengthen the supervision of internet-only banks, and focus on various supervisory aspects including liquidity risk management, credit risk management, operational risk management, reputational risk management, corporate governance framework, market competition behavior and consumer protection.

RECENT DEVELOPMENTS

Abstract

This study aimed to the innovation model of circular economy based on the interactive innovation model. Circular economy innovation model includes the practice directions of innovation on technology and business model, and the driving force by both "technology push" and "demand pull". Policies and regulations are the most important sources of the driving force of circular economy innovation in the period of transforming the economics concept from "linear" to "circular". According to the cases of Europe Union, United Kingdom and Finland, the transformation of circular economy not only needs policy and regulatory support but the systematic change by concerning of cross-domain and inter-departmental coordination and cooperation.

Key Words: Circular Economy, Innovation Model, R&D, Business Model

< Source: Yen-Ju Fan, The Innovation Model and Legal Issue of Circular Economy, Science and Technology Law Review Vol. 31 No. 6 p.46~71 >

Abstract

Recently, overseas investment from China has increased rapidly, in the meanwhile targeting emerging and critical technology areas. Concerning about technology leaks and national security, the United States expanded the authority of the competent authority through the "Foreign Investment Risk Review Modernization Act of 2018". Whether foreign investment involves critical infrastructure or technology, thus jeopardize its technological leadership and national security, or enable the foreign government to gain substantial control, should all be taken into consideration during the review. European Union has also established the " Framework for screening of foreign direct investments into the European Union" to take security and public order into consideration, as well as strengthen information sharing and cooperation.

In contrast, Taiwan hasn't specifically emphasized the considerations and specific contents of "national security", either in "Statute For Investment By Foreign Nationals" or "Act Governing Relations between the People of the Taiwan Area and the Mainland Area". As a result, the government still needs to modify related regulations comprehensively, so as to prevent technology outflows and strengthen national security effectively.

Key Words: Foreign direct investment, Export control, National security, Critical infrastructure, Emerging technology

< Source: Daisy Du, Legal Analysis on Foreign Investment and Export Control, Science and Technology Law Review Vol. 31 No. 7 p.42~71　>