When a financial services enterprise enters into a contract with a financial consumer for the provision of financial products or services, it shall act in conformance with the principles of fairness, reasonableness, equality, reciprocity, and good faith.
Contractual provisions entered into by a financial services enterprise and a financial consumer that are clearly unfair shall be invalid. If there is a disagreement over the meaning of any contractual provision, the provision shall be interpreted in favor of the financial consumer.
A financial services enterprise, in providing financial products or services, shall exercise the due care of a good administrator; for any financial product or service it provides that has the nature of a trust or mandate arrangement, the financial services enterprise shall also bear such duty of loyalty as may be required by applicable legal provisions or contractual stipulations.

A financial services enterprise, in publishing or broadcasting advertisements or carrying out solicitation or promotional activities, shall not engage in falsehood, deception, concealment, or other conduct sufficient to mislead another party and shall ensure the truthfulness of the content of its advertisements. The obligation it bears to financial consumers shall not be less than that indicated in the content of the aforementioned advertisements or in the materials or explanations provided to financial consumers in the aforementioned solicitation or promotional activities.
Regulations governing the methods, content, and other requirements pertaining to the advertisements and solicitation or promotional activities of the preceding paragraph shall be prescribed by the competent authority.
A financial services enterprise shall not take advantage of education and awareness programs to introduce individual financial products or services.

Before a financial services enterprise enters into a contract with a financial consumer for the provision of financial products or services, it shall fully understand the information pertaining to the financial consumer in order to ascertain the suitability of those products or services to the financial consumer.
Regulations governing what "information pertaining to the financial consumer" must be fully understood and what matters relating to "suitability" must be taken into account, as mentioned in the preceding paragraph, and other matters requiring compliance shall be prescribed by the competent authority.

Before a financial services enterprise enters into a contract with a financial consumer for the provision of financial products or services, it shall fully explain the important aspects of the financial products or services and of the contact to the financial consumer and shall also fully disclose the associated risks.
An entity as referred to in the preceding paragraph that engages in the collection, processing, and use of personal information shall fully explain to the financial consumer his or her rights regarding the protection of personal information and the possible negative consequences of any refusal to provide consent. A financial services enterprise that engages in lending business shall also carefully consider the borrower, the intended use of the funds, the source of repayment, the security for its claim, the perspective risks and benefits of the loan, and other such lending principles, and it shall not decline to provide a loan to a financial consumer solely on the grounds that the financial consumer has refused to authorize it to submit a query about his or her credit information to an enterprise that conducts inter-institutional credit information services.
The explanations and disclosures that the financial services enterprise provides to the financial consumer, as mentioned in paragraph 1, shall be in text or use another method that is fully understandable to the financial consumer, and the content thereof shall include, without limitation, aspects of material significance to the interests of the financial consumer, such as transaction costs, and possible gains and risks. Regulations governing related requirements shall be prescribed by the competent authority.
When financial products provided by a financial services enterprise are complex, high-risk products as defined in Paragraph 2 of Article 11-2 of the Act, the aforementioned explanations and disclosures should be recorded or filmed unless it is an automatic channel transaction or the consumer does not agree.

A financial services enterprise which, by violating any provision in either of the two preceding articles, causes harm to a financial consumer shall bear liability for damages; provided, however, that this shall not apply if the financial services enterprise can prove that occurrence of the harm was not due to: its failure to fully understand the suitability of a product or service to the financial consumer; its failure to provide an explanation, or provision of an explanation that was untrue or incorrect; or its failure to fully disclose risks.

Financial services enterprises should set a sales personnel remuneration system and have it approved by the board of directors.
The aforementioned remuneration system should give equitable consideration to customer rights and interests, the various risks that the financial product or service poses to the financial industry and customers, and shall not only consider the products or service sales performance target achievement situation.
The principles that the aforementioned financial service sales personnel remuneration system should follow shall be set by the relevant industry association or an industry group designated by the competent authority, and be reported to and approved by the competent authority.

The initial sale of complex, high-risk products by financial services enterprises shall be reported to and approved by the Board of Directors or the Executive Board of Directors.
The types of aforementioned complex, high-risk products shall be defined by the competent authority.
In the case of the branch units of foreign financial services enterprises in Taiwan, for the complex, high-risk products in Paragraph 1 and the remuneration system in Paragraph 1 of the previous article, the agreement of the responsible persons in Taiwan should be received.

The court may, in response to a claim by a financial consumer, award punitive damages up to three times the amount of actual damage for damage caused by a willful act of misconduct by a financial services enterprise; however, if such damage is caused by negligence, a court may award punitive damages up to one time the amount of the actual damage.
The aforementioned rights to claim punitive damages shall be extinguished if not exercised within two years from the time the claimant learns of the cause entitling damages to be claimed or within five years from the date of occurrence of such cause for damages.

A financial services enterprise shall incorporate the content of Articles 8 through 10, Article 11-1, and Article 11-2 into its internal control and internal audit systems and faithfully implement them.

With respect to a financial services enterprise that fails to act in accordance with the financial consumer-related regulations in Chapter 2, the competent authority may order it to take corrective action within a specified period of time and may impose the following disciplinary action, depending on the seriousness of the situation:
1.Issue a warning.
2.Order a whole or partial suspension on the sale of the particular product involved in violation.
3.Order the suspension of the financial services enterprise's business in part or in full for up to one year.
4.Order the financial services enterprise to suspend its directors, supervisors, managers, or employees from their positions for up to one year.
5.Order the financial services enterprise to remove its directors, supervisors, managers, or employees.
6.Any other necessary disciplinary action.
In cases where a financial services enterprise fails to take the corrective action during the time period set out by the competent authority pursuant to the preceding paragraph, the competent authority may again order it to take corrective action within a specified period of time and impose disciplinary actions pursuant to the preceding paragraph. In cases where the violation is deemed severe, the business license of the offending enterprise may be revoked.