On Aug. 1, TAI FSC proposed revisions re lower reporting threshold.
TAI FSC proposed to amend Regulations governing the declaration on acquisition of shares in accordance with paragraph 1 of article 43-1 of the Securities and exchange act, to comply with the revised Securities and exchange act articles 43-1 and 183.
Follows TAI Justice May 2023 amended Securities and exchange act, see #172094.
Amendments
Aims to lower the reporting threshold for substantial shareholdings from 10% to 5%.
Shareholders will be able to submit their reports through file uploads on the market observation post system (MOPS), to effectively complete the reporting process.
Government-managed retirement, insurance funds will be subject to special regime, with semi-annual reporting deadlines within 10 days for initial/subsequent changes.
Shareholders with 5% to 10% shares of publicly traded company's total issued shares before implementation date must report within 10 days after the new rules take effect.
Effectiveness
The new regulations will be effective on May 10, 2024 once approved, consultation will be open for 60 days from the date of the official announcement in the gazette.
Aug. 9, 2023 Consultation Open
On Aug. 9, 2023, TAI FSC published consultation paper on the above amendments.
The consultation is open for 60 days, until Oct. 11, 2023.
In Aug. 2023, TAI FSC proposed amendments to enhance protection, see #182684.
Jan. 16, 2024 Advance Notice
On Jan. 16, 2024, TAI FSC said that proposed amendments will be published soon.
Jan. 30, 2024 Amendments Finalized
On Jan. 30, 2024, TAI FSC issued order on finalizing amendments to the regulations.
TAI EXC also published the amended regulations on its database on the same day.
The amendments are effective from May 10, 2024.
Jan. 31, 2024 TAI LAB
On Jan. 31, 2024, TAI Justice issued TAI LAB order for the interpretive rule pursuant to Article 42 of the Labor pension act which exempts the management and operation of labor pension funds from certain provisions of the Securities and exchange Act.
This exemption is based on legislative intent of the Labor pension act, which prioritizes retirement life security of laborers, seeks maximum benefits for labor pension funds.
Entities involved in managing labor retirement funds, such as fund operations office, entrusted FIs, are prohibited from disclosing business secrets related to operations.
Labor pension funds are considered to have high degree of public interest, uniqueness, and information re stock holdings and changes is within scope of business operations.
Feb. 2024 TAI TPEX
On Feb. 17, 2024, TAI TPEX published the amended regulations re declaration on acquisition of shares according to para 1 of article 43-1 of Securities and exchange act.
Mar. 2024 Electronic Reports
On Mar. 19, 2024, TAI FSC said disclosure threshold for substantial shareholding will be reduced from 10% to 5%; reports will shift from paper-based to electronic format.
TAI EXC, TAI TPEX will handle submissions related to substantial shareholding.
Reminded that the lowered disclosure threshold will take effect from May 10, 2024.
