In Tatung’s controversial shareholders’ meeting at the end of June, the family-controlled management overstepped its power and self-interpreted the laws to block its opponents’ voting rights. As a result, not only did the Ministry of Economic Affairs reject the company’s registration of new board directors, but the Financial Supervisory Commission (FSC) also reported the matter to judiciary authorities, saying the company had committed a breach of trust.
Soon after, Jko Fintech last month relaunched its investment product Tuofu Bao, which, as expected, attracted NT$150 million (US$5.1 million) from 5,000 investors on its first day.
The financial technology company claimed its product complied with the law and had regulatory approval, which the FSC denied. In the end, Jko Fintech had to suspend the service, because it is the commission, not the company, that has the final say.
Jko Fintech touted Tuofu Bao as its answer to Alibaba Group’s Yuebao, which has attracted massive deposits from Chinese consumers to become the largest money market fund in China. Tuofu Bao would have allowed users of Jko Fintech’s e-payment platform, Jkopay, to invest cash online in the Jko Multi-Asset Fund, which is managed by Jko Fintech affiliate Jko Asset Management.
The company has been promoting Tuofu Bao since 2018, saying it would offer better returns than traditional deposits. Last month was the third time Jko Fintech has unsuccessfully attempted to bring the service to market.
What raised eyebrows at the FSC were the company’s claims that the investment service would offer an “expected return of 1.2 to 2.5 percent,” although the company said that it was not guaranteeing annual returns. The commission also took issue with the company’s other claims that Tuofu Bao faces no legal issues and that it does not require FSC approval.
Jko Fintech committed the same mistake as Tatung. Whether in the electronics industry or the financial sector, the interpretation of regulations should not be made by a company itself, but by the authority that has jurisdiction over it.
However, no one can deny that the launch of Tuofu Bao has prompted debate over the government’s ability to strike a balance between timely approval of new financial products and services and exercising appropriate government supervision.
As more companies are creating fintech innovation plans to diversify their financial services, improve efficiency and promote inclusive finance, they are stepping into the payment, financing, asset management, investment, cross-border remittance and insurance businesses that have long been dominated by traditional financial institutions, while at the same time bringing new challenges to regulators in terms of legal supervision, market stability and information security.
In a July 23 Facebook post, the central bank said that while regulators encourage innovation, they need to keep rules up to date to prevent firms from exploiting loopholes, ensure financial stability and fair market competition, and protect consumers’ rights.
The central bank also said that it is necessary to cultivate greater cooperation and coordination between local and international regulators to enhance supervision.
Over the past few years, the government has pushed for fintech development and to establish an environment where financial innovation can thrive.
It is unknown whether the central bank’s Facebook post is related to the FSC’s dispute with Jko Fintech over Tuofu Bao, but its message is clear and important: A balance should be struck between innovation and risk control to protect the rights and interests of all parties.
Deterrence is fading; war is looming on the Taiwan Strait and for other targets of the China-enabled dictatorship alliance, and after three years the cure is just dawning on the Biden Administration. Now mind you, for a May 28, 2024 interview with Time magazine, President Joe Biden made his 5th public commitment that the United States would defend Taiwan. Less than three weeks later the United States Navy, along with ships from navies of Japan, Canada, the Netherlands, and France, were conducting the Valiant Shield joint force exercise in the Philippine Sea south of Taiwan and in the South China Sea to
The official media of the Chinese Communist Party (CCP) reacted to the May 20 inauguration speech of President William Lai (賴清德) by asserting: “Lai’s words reveal his true intention of sacrificing peace and stability across the Taiwan Strait for his own desire for power.” This baseless accusation by Beijing that Lai is manipulating Taiwanese to resist unification with China for his personal gain, is part of a broader CCP information warfare campaign that has intensified since Lai’s election. This campaign, orchestrated by the United Front Work Department, the CCP’s agency for coordinating influence operations and propaganda, aims to demoralize Taiwanese,
US aerospace company Boeing Co has in recent years been involved in numerous safety incidents, including crashes of its 737 Max airliners, which have caused widespread concern about the company’s safety record. It has recently come to light that titanium jet engine parts used by Boeing and its European competitor Airbus SE were sold with falsified documentation. The source of the titanium used in these parts has been traced back to an unknown Chinese company. It is clear that China is trying to sneak questionable titanium materials into the supply chain and use any ensuing problems as an opportunity to
Minister of Health and Welfare Chiu Tai-yuan (邱泰源) on Friday said the ministry supports keeping priority seats on public transportation, but is considering expanding the eligibility criteria and renaming the seats. Chiu’s remarks came after local news media over the past few weeks reported incidents involving priority seats, once again sparking heated discussion about whether the seats should be abolished or regulations regarding them should be revised. On June 11, an older woman asked a young woman on a Taipei MRT train to yield her priority seat. The young woman refused, saying that she needed the seat after working a 12-hour shift.