The Financial Supervisory Commission (FSC) plans to tighten its oversight over local investment brokerages to hold company board members accountable if fund managers are found to be involved in fraud or malpractice, the commission said on Thursday.
The FSC would stipulate in the Regulations Governing Responsible Persons and Associated Persons of Securities Investment Trust Enterprises (證券投資信託事業負責人與業務人員管理規則) that board members are responsible for supervising fund managers, it told a news videoconference.
“Board members appoint fund managers and the commission will ask companies to establish an accountability system to enhance their corporate governance,” Securities and Futures Bureau Deputy Director-General Chang Tzy-ming (張子敏) told the conference.
Photo: Chu Pei-hsiung, Taipei Times
If fund managers are found to be involved in malpractice, the commission would consider dismissing the board members from their posts, Chang said, adding that the severest punishment would be to revoke operating permission.
The FSC’s announcement follows reports in the past few years of fund managers at local securities investment companies found to have either colluded with government officials in stocks speculation or to have illegally used insider information to trade personal stocks.
Knowing that the Labor Pension Fund was to invest in some specific stocks, some fund managers allegedly purchased the shares and sold them after the price rose, while other fund managers bought shares with knowledge that their companies were to invest in them, reports said.
In one such case, two fund managers made at least NT$80 million (US$2.56 million) between them, while another group that included an official in charge of a pension fund made NT$538 million, Taipei District Court records show.
Given the rise in malpractice cases among fund managers, the FSC increased the maximum fine for such activity to NT$15 million from NT$3 million.
The commission would bar people from serving on the boards of two or more securities investment companies to prevent conflicts of interests, Chang said.
However, this rule would not apply to state-owned securities firms, he said.
Although the FSC is generally tightening rules for fund managers, it would relax one rule, allowing them to manage the wealth of their dependent children, it said.
This is a reasonable activity, it said.
The changes to the regulations would take effect in 60 days, Chang said.
Zhang Yazhou was sitting in the passenger seat of her Tesla Model 3 when she said she heard her father’s panicked voice: The brakes do not work. Approaching a red light, her father swerved around two cars before plowing into a sport utility vehicle and a sedan, and crashing into a large concrete barrier. Stunned, Zhang gazed at the deflating airbag in front of her. She could never have imagined what was to come: Tesla Inc sued her for defamation for complaining publicly about the vehicles brakes — and won. A Chinese court ordered Zhang to pay more than US$23,000 in
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday said that its investment plan in Arizona is going according to schedule, following a local media report claiming that the company is planning to break ground on its third wafer fab in the US in June. In a statement, TSMC said it does not comment on market speculation, but that its investments in Arizona are proceeding well. TSMC is investing more than US$65 billion in Arizona to build three advanced wafer fabs. The first one has started production using the 4-nanometer (nm) process, while the second one would start mass production using the
‘NO DISRUPTION’: A US trade association said that it was ready to work with the US administration to streamline the program’s requirements and achieve shared goals The White House is seeking to renegotiate US CHIPS and Science Act awards and has signaled delays to some upcoming semiconductor disbursements, two sources familiar with the matter told reporters. The people, along with a third source, said that the new US administration is reviewing the projects awarded under the 2022 law, meant to boost US domestic semiconductor output with US$39 billion in subsidies. Washington plans to renegotiate some of the deals after assessing and changing current requirements, the sources said. The extent of the possible changes and how they would affect agreements already finalized was not immediately clear. It was not known
A TAIWAN DEAL: TSMC is in early talks to fully operate Intel’s US semiconductor factories in a deal first raised by Trump officials, but Intel’s interest is uncertain Broadcom Inc has had informal talks with its advisers about making a bid for Intel Corp’s chip-design and marketing business, the Wall Street Journal reported, citing people familiar with the matter. Nothing has been submitted to Intel and Broadcom could decide not to pursue a deal, according to the Journal. Bloomberg News earlier reported that Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) is in early talks for a controlling stake in Intel’s factories at the request of officials at US President Donald Trump’s administration, as the president looks to boost US manufacturing and maintain the country’s leadership in critical technologies. Trump officials raised the
RSS