Regulations Governing the Handling of Financial Forecasts of Public Companies

These regulations are established by the Financial Supervisory Commission (FSC) under the Securities and Exchange Act to govern the preparation and disclosure of financial forecasts by public companies. According to Article 3, companies must establish a complete budgeting system and prepare forecasts based on good faith and reasonable assumptions, including projected balance sheets and income statements, to ensure reliability and consistency for investor protection.

Non-compliance poses multiple risks. Legally, companies may face fines from NT$240,000 to NT$4,800,000 under the Securities and Exchange Act. In the market, inaccurate or delayed forecasts can severely damage investor confidence, affecting stock prices and corporate reputation. Furthermore, regulators may require companies to reissue or update forecasts, incurring additional compliance costs. Adherence is crucial for maintaining corporate governance and market trust.

These regulations are closely linked to several international standards. Primarily, **ISO 31000 Risk Management**, as the accuracy of financial forecasts is directly related to the assessment and control of financial risks. Secondly, the sensitive data used for forecasting requires protection under **ISO 27001 Information Security Management** to prevent data leakage. Additionally, its principles align with the COSO Framework's requirements for reliable financial reporting.

Winners Research Corp. is Taiwan's first consulting firm to integrate ERM, technology law, financial engineering, and data science. We don't just ensure compliance; we vertically integrate these regulations with ISO certifications, corporate governance, and internal controls to prevent redundant systems. Our founder's background in preventive law and our team of tech lawyers and ISO Lead Auditors enable us to mitigate risks at the source, ensuring your financial forecasting process is both compliant and secure, which is especially critical for protecting trade secrets in high-tech industries like semiconductors.