To align with the roadmap for IFRS Sustainability Disclosure Standards, the Financial Supervisory Commission (FSC) has amended the Regulations Governing the Preparation of Financial Reports by Securities Firms by adding a new chapter on sustainability-related financial information, Article 32-1.
To align with the roadmap for IFRS Sustainability Disclosure Standards, the Financial Supervisory Commission (FSC) has amended the Regulations Governing the Preparation of Financial Reports by Securities Firms by adding a new chapter on sustainability-related financial information, Article 32-1. The amendment requires securities firms meeting specific criteria to disclose sustainability-related risks, opportunities, and material information in their annual financial reports. To alleviate the reporting burden, the scope of disclosure is limited to information that can be obtained at reasonable cost, and firms shall refer to the SASB Standards to ensure the linkage and compatibility between the information and the financial reports.
According to FSC Order No. Jin-Guan-Zheng-Quan-Zi 11403856095, the eligible securities firms are subject to a phased implementation schedule based on paid-in capital, as follows:
1. Securities firms with paid-in capital of NTD 10 billion or more shall prepare the sustainability-related financial information starting from fiscal year 2026 and file it in 2027;
2. Securities firms with paid-in capital of NTD 5 billion or more but less than NTD 10 billion shall prepare the relevant information starting from fiscal year 2027 and file it in 2028;
3. Securities firms with paid-in capital of less than NTD 5 billion shall prepare the relevant information starting from fiscal year 2028 and file it in 2029.
With respect to audit and filing flexibility, sustainability-related financial information is not subject to audit or review by a certified public accountant. Where a securities firm has already prepared its annual report in accordance with the Regulations Governing Information to Be Published in Annual Reports of Public Companies and disclosed the relevant information therein, it may present such information in its financial reports by means of a “cross-reference index,” thereby avoiding duplicative disclosures while balancing information transparency and reporting efficiency.
References:
1. General Explanatory Notes and Comparison Table for the Amendments to Articles 11, 22, and 32-1 of the Regulations Governing the Preparation of Financial Reports by Securities Firms
2. Financial Supervisory Commission Order Jin-Guan-Zheng-Quan-Zi No. 11403856095, dated December 26, 2025
