FSC fines Shin Kong Life for reckless investmentPOOR INTERNAL CONTROLS: Insurance Bureau Director-General Shih Chiung-hwa said the company is expected to get back on track while its chairman is suspendedBy Kao Shih-ching / Staff reporterThe Financial Supervisory Commission (FSC) yesterday fined Shin Kong Life Insurance Co (新光人壽) NT$27.6 million (US$939,415) for a reckless investment that endangered its solvency, and suspended its chairman Eugene Wu (吳東進) for poor supervision. The penalty is the second-highest in a single case after Nan Shan Life Insurance Co (南山人壽) was fined NT$30 million in September last year and its chairman Du Ying-tzyong (杜英宗) suspended for two years, the commission said. Insurance Bureau Director-General Shih Chiung-hwa, center, announces a NT$27.6 million fine for Shin Kong Life Insurance Co at a news conference in New Taipei City yesterday. “We expect the insurance company to get back on track by overhauling its mechanisms for investment and risk management while Wu is absent,” Shih said. The commission did not set a deadline for Shin Kong Life to trim the ratio, but demanded that it not buy any local or foreign stocks and exchange-traded funds before the adjustment is completed, Shih said.

Source: Taipei Times September 15, 2020 15:56 UTC