FSC to tighten rules for local investment firmsBy Kao Shih-ching / Staff reporterThe 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. 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. 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.

Source: Taipei Times September 16, 2022 23:27 UTC