In recent times, Taiwan has seen a surge in the popularity of ETFs, with investment trust companies using influencer marketing to promote ETFs and gain attention. Huang Tianmu, Chairman of the Financial Supervisory Commission (FSC), stated today that the Investment Trust and Investment Consulting Association is currently discussing the revision of self-regulatory guidelines for influencer advertising. It is expected that these guidelines will be finalized by the end of June this year. The FSC is also considering whether virtual assets should be regulated under specific laws.
The ETF frenzy has taken off in Taiwan, particularly with the emergence of the “Yuanta Taiwan High Dividend 00940” ETF. Since its launch, it has garnered significant attention from the market, leading to various chaotic situations such as the idea of beating fixed deposits and using mortgaged properties. The FSC revealed today that the 00940 ETF has raised approximately NT$170 billion, setting a new record. During the subscription period, the excessive promotion by influencers has also become a social concern.
Regarding the self-regulatory guidelines for influencer advertising, Chairman Huang Tianmu reported to the Finance Committee today. According to Economic Daily News, Kuomintang lawmaker Lai Shih-bao pointed out during the committee meeting that the Fair Trade Commission had already regulated the handling of online advertising cases and imposed penalties ranging from NT$500,000 to NT$25 million for false influencer advertising. He questioned the FSC’s effectiveness in regulating investment trust companies’ use of influencers to promote financial products.
In response, Chairman Huang Tianmu stated that investment trust companies should adhere to the Advertising Guidelines for Investment Trust and Investment Consulting Association, which requires clear disclosure within the advertisement indicating the sponsoring company. This allows viewers to easily recognize the advertisement as a marketing message.
Chairman Huang Tianmu disclosed that the Investment Trust and Investment Consulting Association is currently working on amending self-regulatory guidelines to strengthen the management of influencer behavior by investment trust companies and fund sales organizations. These guidelines are expected to be finalized by the end of June this year.
Regarding the promotion of mortgaging houses to invest in ETFs by influencers, Huang Tianmu expressed that this approach carries high risks, and the rise or fall of ETF component stocks is not determined by the issuing institution. Past performance does not guarantee future performance.
In another report by Central News Agency, People First Party legislator Huang Shan-shan raised a concern during the questioning session, pointing out that influencers not only endorse ETFs but also endorse virtual assets. She asked Chairman Huang Tianmu how the FSC plans to regulate influencer marketing of virtual assets. Chairman Huang Tianmu responded that the FSC primarily regulates virtual asset platforms and currently has no regulations to govern influencer endorsements of virtual assets. However, the FSC has commissioned external research on specific laws for virtual assets, and it is expected that a draft law will be released after September this year, taking into account international practices and considering whether this year’s draft law should address influencer marketing.
Chairman Huang Tianmu stated that virtual assets and ETFs cannot be compared, as ETFs are approved financial products by the FSC, while virtual assets do not fall under the category of securities. Currently, the FSC manages virtual assets through the Anti-Money Laundering Act, which authorizes the regulation of virtual currency platforms and transaction business to prevent money laundering and combat terrorist financing.
In January this year, Chairman Huang Tianmu previously mentioned that the FSC had started outsourcing research on the feasibility of establishing specific laws for virtual assets, and preliminary results are expected to be presented in September. This research will draw on the experiences of other countries to explore how to effectively regulate the scope and depth of virtual asset management.
For more information, please refer to the following articles:
– Taiwan’s Cryptocurrency Law to be Released in September: Research Results Outsourced, FSC: Not Just Focusing on Anti-Money Laundering, External Research on Regulatory Standards Commissioned
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