MEMORANDUM OF UNDERSTANDING BETWEEN THE FINANCIAL SUPERVISORY
COMMISSION, TAIWAN, R.O.C. AND THE INSURANCE COMMISSION OF
JORDAN CONCERNING MUTUAL COOPERATION

1.The Financial Supervisory Commission, Taiwan, R.O.C. (the
"FSC") and the Insurance Commission of Jordan (the "IC") have
reached the following understanding in order to establish an
arrangement for the sharing of information to facilitate the
performance of their respective duties and to promote the safe
and sound functioning of insurance companies that have
cross-border establishments in their respective jurisdictions.
This understanding demonstrates the commitment of both
regulators to the principles of effective consolidated
supervision and cooperation between insurance regulators.
2.The FSC and the IC express, through this understanding, their
willingness to cooperate with each other on the basis of
mutual trust and understanding in the regulation of
cross-border establishments located within their respective
jurisdictions. A "cross-border establishment" is defined as an
office within the host jurisdiction that gives rise to the
need for consolidated regulation by the home regulator.
3.The FSC is Taiwan's national financial services and markets
regulator and is authorized by the Organic Act of Financial
Supervisory Commission, Executive Yuan, and other applicable
laws and regulations to supervise financial services,
financial products and financial markets in Taiwan.
4.The IC is the insurance regulator empowered to regulate,
supervise and develop the insurance sector in Jordan including
Insurance Companies and Insurance Supporting Services
Providers, through the implementation of the Insurance
Regulatory Act No. (33) of 1999.
Purpose:
5.This MOU does not modify or supersede any laws or regulatory
requirements in force in Taiwan or in the Hashemite Kingdom of
Jordan. This MOU is a statement of intent and accordingly does
not create any enforceable rights. This MOU does not affect
any arrangements under other MOUs
Sharing of information
6.The FSC and the IC recognize that information should be shared
in order to facilitate effective consolidated regulation and
supervision of insurance companies operating across their
national borders. Information-sharing includes contact during
the authorization and licensing process, throughout the
regulation of the ongoing activities of such entities, and in
the handling of problem resolution.
7.In connection with the licensing process:
(a)The host regulator will notify the home regulator, without
delay, of applications for approval to establish offices or
make acquisitions in the host jurisdiction;
(b)To the extent permitted by law and upon request, the home
regulator will inform the host regulator whether the
applicant insurance company is in substantial compliance with
insurance laws and regulations of the home country and
whether the insurance company may be expected, given its
administrative structure and internal controls, to manage the
cross-border establishment in an orderly manner. The home
regulator will also, upon request, assist the host regulator
with verifying or supplementing any information submitted by
the applicant insurance company;
(c)The home regulator will inform the host regulator about the
nature of its regulatory system and the extent to which it
will conduct consolidated regulatory supervision over the
applicant insurance company. Similarly, the host regulator
will inform the home regulator about the nature of its
regulatory system and the extent to which it will regulate
the cross-border establishment of the applicant insurance
company; and
(d)To the extent permitted by law, the home and host regulators
will share information on the fitness and qualifications of
prospective managers of a cross-border establishment.
8.In connection with the ongoing regulation of cross-border
establishments, the two regulators intend to:
(a)Provide relevant information to their counterpart regarding
material developments or regulatory concerns with respect to
the operations of a cross-border establishment;
(b)Respond to requests for information on their respective
regulatory systems and inform each other about major changes,
in particular those that have a significant bearing on the
activities of cross-border establishments;
(c)Inform their counterpart of material administrative penalties
imposed on, or other formal enforcement action taken against,
a cross-border establishment. Prior notification thereof
shall be given to their counterpart to the extent practicable
and subject to applicable laws; and
(d)Facilitate the transmission of any other relevant information
to their counterpart that might be required to assist with
the regulatory process.
9.Requests for information will normally be made in writing.
However, where the regulatory authorities perceive a need for
expedited action, requests may be initiated in any form but
should be confirmed subsequently in writing. A request for
information may be denied on the grounds of public interest or
national security or where disclosure would interfere with an
ongoing investigation or would cause harm to any third party.
On-site inspections
10. The FSC and the IC recognize that cooperation is
particularly useful in the conduct of on-site inspections of
cross-border establishments in the host jurisdiction. Prior
to deciding whether an on-site inspection is necessary, the
home regulator should review any relevant examination or
other regulatory reports prepared by the host regulator. The
home regulator undertakes to notify the host regulator of
plans to examine a cross-border establishment or to appoint
a third party to conduct an examination on its behalf, and
to indicate the purposes and scope of the examination. The
host regulator will allow the home regulator to conduct
on-site examinations. As may be mutually agreed between the
parties, examinations may be carried out by the home
regulator alone, or accompanied by the host regulator.
Following the examination, a meeting or other exchange of
views should take place between the examination team and the
host regulator.
Protection of information
11. The FSC and the IC recognize that mutual trust can only be
achieved if exchanges of information can flow in confidence
in both directions. Both regulators agree to take all
possible steps to preserve the confidentiality of any
information received. In this regard, employees of both
regulatory authorities are bound to hold confidential all
information obtained in the course of their duties. Any
confidential information received from the other regulator
will be used exclusively for lawful regulatory purposes.
12. A regulator in one jurisdiction that has received
confidential information from a regulator in another
jurisdiction may subsequently receive a request for that
information from a third party, including a third party
regulatory authority, who has a legitimate common interest
in the matter. Prior to passing information to the third
party, the regulator will consult with and seek agreement
from the regulator that originated the information, who may
attach conditions to the release of information, including
that the third party recipient be bound to hold the
information confidential.
13. In the event that a regulator is legally compelled to
disclose to a third party, including a third party
regulatory authority, information that has been provided in
accordance with this understanding, the disclosing regulator
will promptly notify the regulator that originated the
information, indicating what information it is compelled to
release and the circumstances surrounding its release. If so
required by the originating regulator, the disclosing
regulator will use its best efforts to preserve the
confidentiality of the information to the extent permitted
by law. The FSC and the IC will inform each other of the
circumstances in which they may be subject to legal
compulsion to release information obtained.
14. Termination of this MOU does not affect under this MOU the
confidentiality of information, which shall continue to have
effect.
Ongoing Coordination
15. The FSC and the IC agree to promote their cooperation
through visits for information purposes and, where
practicable, by exchanges of staff. In addition, the two
regulators agree to consider how the training of staff at
either agency might benefit from input and support by the
other agency in order to reinforce sound insurance
regulatory practices in both jurisdictions.
16. The FSC and the IC will conduct meetings as often as
appropriate to discuss issues concerning insurance companies
that maintain cross-border establishments in the respective
jurisdictions and to review the effectiveness of cooperation
arrangements.

SIGNED IN Taipei ON July 15, 2008

The Financial Supervisory Commission, Taiwan, R.O.C.

____________________________
Dr. Gordon S. CHEN
Chairman


The Insurance Commission of Jordan

____________________________
H.E. Dr. Bassel Hindawi
Director General