TAIPEI, July 31 (Reuters) - Taiwan will require foreign brokerages that issue reports on individual stocks to assert their ownership of the reports if they are picked up by local media, a Taiwanese newspaper reported on Thursday.
If a foreign-held financial institution issues a report that downgrades or upgrades a company’s stock and the report is quoted by local media, the institution must notify Taiwan’s Stock Exchange and Financial Supervisory Commission (FSC) that it wrote the report or face temporary suspension of its business licence, according to a report in Taiwan’s Economic Daily News.
The newspaper report, quoting comments made by an FSC official, said the new rule was meant to increase foreign banks’ accountability for their stock ratings, It would take effect beginning in August, the newspaper said.
Foreign banks are currently allowed to issue reports only to their clients, not to media. But local media get hold of some reports and publish them anyway.
Taiwan’s Financial Supervisory Commission could not immediately be reached for comment. (Reporting by Michael Gold; Editing by Alan Raybould)