Taiwan to Require IT Security Enhancements at Financial Firms

Source: Regulation Asia Editors, Regulation Asia 2020-08-11

The FSC will require big financial firms to be able to restore operations within four hours after a disaster (possibly less for securities firms), among other measures.

Taiwan’s FSC (Financial Supervisory Commission) has unveiled a new roadmap for boosting financial firms’ information security in the next four years, reported Taipei Times.

Under the plan, financial firms will be required to strengthen their business continuity plans and ensure they can restore operations within four hours after a disaster such as a cyberattack – in line with international standards.

Companies such as securities firms should be able to recover in less than four hours, in order to immediately process client transactions, according to FSC director-general Tsai Fu-longe.

As such, the FSC is considering imposing a two hour time limit to restore operations on securities brokers, though this has yet not been finalised.

Taiwan’s 28 big financial firms – 17 banks, eight insurance companies, and three securities firms – will be required to set up independent departments of information security by the end of next year. They must also appoint vice presidents to serve as chief information security officers to oversee information protection.

The FSC will incentivise companies to strengthen their information security by offering rewards, such as reduced premiums for deposit insurance or privileges in launching new products.

The FSC is also said to be considering establishing an information protection centre – similar to the US’ Sheltered Harbor initiative – to store a copy of companies’ data in case of a catastrophic event that destroys their backup systems.

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Taiwan to Require IT Security Enhancements at Financial Firms

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