This article begins with the introduction of the Financial Consumer Protection Act (the "FCPA") in Taiwan. Analyzing cases involving the FCPA, we can see that the nature of the suitability rule and the duty of disclosure under the FCPA are not so clear while the court judgments also conflict with each other. Given that the suitability rule and the duty of disclosure under the FCPA were imported from Japan, it is important to compare the rules between Taiwan and Japan. For that reason, this article introduces the suitability rule and the duty of disclosure in the context of financial instruments in Japan, and compares the differences between Taiwan and Japan. As for the suitability rule, Taiwan imposes a strict liability on financial services providers. However, Japan does not impose such a liability. Also, the judgments in Japan adopt a clear standard of quality and quantity in determining the breach of the suitability rule. As to the duty of disclosure, compared with those in Japan, the judgments in Taiwan are still a little bit too formalistic in that requirements on how to disclose are not differentiated for financial services providers when they encounter different kinds of consumers. Should we rethink the imposition of a strict liability in the regulation of suitability? Or we may consider adopting the standard of simple negligence to avoid the moral hazard of financial consumers. Should the courts pay more attention to substantive elements on characteristics of different consumers when they adjudicate the cases related to the duty of disclosure? Further we can consider characterizing the breach of the duty of disclosure and the suitability rule as a special kind of a tort by referring to Japanese law. Moreover, we should require financial firms to integrate the duty of disclosure and the suitability rule into their internal controls, while imposing joint and several liabilities on directors who ignore overseeing their employees. That way, directors are incentivized to monitor employees. Employees will thus obey the duty of disclosure and the suitability rule more carefully under directors' oversight.