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FSC imposes sanctions on Shinkong Insurance Co., Ltd.

During a targeted examination on the securities investment operations at Shinkong Insurance, the FSC discovered the following deficiencies: (1) In its conduct of securities transactions, Shinkong Insurance had violated procedural rules governing dealings with interested parties by failing to comply with Article 3, paragraph 1, subparagraph 10 of the "Regulations Governing Transactions Other Than Loans between Insurance Enterprises and Interested Parties," which requires that such matters be submitted the board of directors for approval. (2) The company had submitted statements of intent to subscribe before submitting investment analysis reports; managers gave traders simple oral instructions to change purchase prices; and prior to investments the company had failed to analyze the financial status of the issuer or had failed to prepare written reports on its exercise of voting rights at shareholders meetings of investee companies for the purpose of submitting such reports to the company's next board of directors meeting, or the company's personnel involved in equity investment operations had failed to file reports as required by law. The FSC, after determining there was a likelihood that these deficiencies were legal violations or impeded sound business management, imposed an administrative fine of NT$4.5 million in accordance with Article 168, paragraph 5, subparagraph 8 of the "Insurance Act." The FSC also issued the company five official reprimands in accordance with Article 149, paragraph 1 of that same Act, and prohibited the company for two years from conducting after-market fixed-price trades or block trades of stocks with related parties.
Visitor: 598   Update: 2021-03-31