FSC head axed in cloud of suspicion

Kong has also been severely criticized during his 23 months as chairman.

"As a relative newcomer to politics, he has an insufficient sense of political operations ... and is less sophisticated in personnel management as well as communication with other departments and the legislature," Tsai said.

Kong's insistence that Lee was innocent and his opposition to prosecutors' investigation backfired, dealing a serious blow to Kong and the whole commission.

Lee was indicted for his involvement in the illegal trading of Power Quotient International Co shares in October last year.

According to both Tsai and Charles Yeh (葉銀華), director of the Graduate Institute of Finance at Fu Jen Catholic University, this was a really big mistake.

However, it is undeniable that Kong has made a significant contribution to revamping the nation's finance sector and capital markets and opening them up to the international market, Tsai said.

Yeh said that "the commission has indeed carried out many reforms that conform to professional ideals in the past two years."

He cited the amendments to the Securities and Exchange Law (證券交易法) which mandate the establishment of an independent board of directors and audit committee, enhancing corporate governance and transparency and bringing business practices in line international standards.