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FSC fines Taiwan Securities NT$2.5m

Financial regulators yesterday imposed penalties on Taiwan Securities Co (台證證券) and its president Lin Keh-hsiao (林克孝) for irregular trading of NT$1.1 billion-worth of shares of Shinkong Synthetic Fibers Corp (新光人纖) in early October.

The Financial Supervisory Commission will punish Taiwan Securities, a subsidiary of Taishin Financial Holding Co (台新金控), with a NT$2.5 million fine, Gary Tseng (曾國烈), head of the commission's banking bureau, said.

Tseng said Taiwan Securities had failed to obtain a final approval from its board before buying shares of the fiber-making company, which was then chaired by Thomas Wu (吳東亮), who is also chairman of Taishin Financial.

Lin will be suspended from trading securities for the next six months, said Wu Tang-chieh (吳當傑), head of the commission's securities and futures bureau.

Lin said he was the deal's sole decision-maker, instead of his boss Thomas Wu, who was then involved in a shareholding battle with his younger brother Eric Wu (吳東昇) over the fiber-maker's chairmanship.

The commission, therefore, did not question Thomas Wu's role in the problematic deal although its vice chairman, Lu Daung-yen (呂東英), also admitted the deal was related to the fight among Wu family members, not financial gains.

"It is, therefore, ruled that no insider trading was found," Lu said.
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