Sanction Decision on Fubon Life
2019-09-27
Fubon Life is found to have the following deficiencies in its foreign equity investments – pre-investment evaluation was inadequate, including lacking a comprehensive cash flow analysis on investment targets, the reasons for buy recommendation were not sufficient, and decisions made in internal investment meeting were not saved; there were no proper analysis and no records saved regarding negative market news on the issuers of target securities; the latest financial conditions of the investment target and potential risks associated with non-reporting of investment target having a material credit risk event or lack of detailed report on such an event were not included in the evaluation report; and related risk management operation was inappropriate, which are non-complying with Subparagraph 4, Paragraph 1, Article 5 of the Regulations Governing Implementation of Internal Control and Auditing System of Insurance Enterprises set forth pursuant to Paragraph 1, Article 148-3 of the Insurance Act. The FSC hereby imposes a fine of NT$2,400,000 on the company in accordance with Paragraph 4, Article 171-1 of the Insurance Act.
Visitor:
9157
Update:
2020-10-29