Session 2: “Regulatory Challenges in Fintech: Rethinking the Scope of the Financial Consumer Protection Act”

This session was led by Deputy Director Yueh-Ping (Alex) Yang, with Associate Dean Chung-Jau Wu of the NTU College of Law as the discussant. Their exchange revolved around Taiwan’s Financial Consumer Protection Act (FCPA), particularly its relationship to the Consumer Protection Act, and how to extend current dispute resolution mechanisms like the financial ombudsman system to FinTech.

Deputy Director Yang observed that fintech-related consumer disputes have revealed ambiguities regarding the applicability of the FCPA. If a service falls outside the FCPA’s scope, consumers may have to rely on the Consumer Protection Act, though it is debatable whether this approach is entirely appropriate. More critically, the FCPA not only facilitates civil remedies but also carries administrative oversight by the Financial Supervisory Commission, providing a vital enforcement mechanism. Therefore, Yang suggested that the FSC incorporate several fintech services under the FCPA and eventually shift to a behavioral supervision model.

On the procedural side, he noted that FCPA disputes of fintech services might fall within the financial ombudsman system, but the ombudsman’s resources for handling these disputes might be limited. He, therefore, proposed exploring additional alternative dispute resolution methods for fintech disputes and clarified the uncertainty as to whether these ADR agreements could override the ombudsman’s statutory role.

Associate Dean Wu focused on procedural aspects, suggesting that the financial ombudsman system is part of a broader move toward non-judicial dispute resolution and emphasizing its strengths in efficiency and expertise. If the definition of “financial services” were broadened, the system should be fortified to handle a potentially greater caseload and possibly expanded to cover disputes not strictly categorized as “financial services,” thus reducing the burden on the courts.