Abstract

The Financial Holding Company Law（hereinafter called “FHCL”） encourages financial institutions to integrate, diversify services, and enlarge economies of scale. In addition, it allows the establishment of financial holding companies and their ownership of such subsidaries as banks, insurance companies, securities firms, and other finance-related institutions. Cross selling of financial products and services will be allowed under the financial group structure. In addition, information , personnels, and equipment may also be shared under the same roof. However, the conflict of application and execution between Fair Trade Law（hereinafter called FTL） and FHCL shall result from promulgating the convert establishment, merger control and cross selling of financial group in FHCL.

Prat I of this Article provides a brief summary of the current situation of financial market and regulatory fundamentals. Part II analyzes the most important regulations and practices of the financial holding company in foreign countries. Part III introduces the development and the business of the financial folding company in Chinese Taipei. Part IV analyzes the relationship of financial policy and competition policy, and introduces the fresh innovations of financial policy. Besides, it illustrates the conflict of financial policy and competition policy, and predicts the harmonization mechanism shall be built up. Part IV also discusses the application of FTL to financial group, and untertakes comparative analysis for the purpose of defining the disputes herefrom, and analyzes the punitory target, in case of the breach of law or regulation by financial group. Part VI provides a brief conclusion.