The Financial Supervisory Commission (FSC) yesterday said that it fully respects the legislature’s resolution urging the commission to come to the rescue of structured notes investors aged 70 and above who are considered “financial laymen.”
The legislature cited a self-discipline principle, or the so-called “laymen clause,” approved by the Bankers’ Association of the ROC (銀行公會) in late April, to argue that banks shouldn’t sell highly leveraged and complicated financial products to clients over 70 years old unless they had signed consent letters.
The legislative resolution’s author, KMT Legislator Alex Fai (費鴻泰), yesterday asked the commission to detect and investigate flaws in the banks’ past selling procedures and, if found, banks should shoulder all responsibility and pay back the investors’ principles from investments linked to the failing Lehman Brothers.
In response, commission Vice Chairman Wu Tang-chieh (吳當傑) said that such disputes had to be reviewed on a case-by-case basis. Banks found to have violated administrative regulations will pay for the investors’ losses, he said.
The commission yesterday approved a draft plan to set up a mechanism to review and approve the launch of structured notes to be implemented by December.
The financial products will be reviewed and approved by the Trust Association of the Republic of China (信託業公會).
The commission yesterday also decided to halve the NT$1 million threshold for banks reporting a receipt or payment, in accordance with anti-money laundering measures. The new threshold will take effect in January at the earliest.
Mercuries Life Insurance Co (三商美邦人壽) shares surged to a seven-month high this week after local media reported that E.Sun Financial Holding Co (玉山金控) had outbid CTBC Financial Holding Co (中信金控) in the financially strained insurer’s ongoing sale process. Shares of the mid-sized life insurer climbed 5.8 percent this week to NT$6.72, extending a nearly 18 percent rally over the past month, as investors bet on the likelihood of an impending takeover. The final round of bidding closed on Thursday, marking a critical step in the 32-year-old insurer’s search for a buyer after years of struggling to meet capital adequacy requirements. Local media reports
US sports leagues rushed to get in on the multi-billion US dollar bonanza of legalized betting, but the arrest of an National Basketball Association (NBA) coach and player in two sprawling US federal investigations show the potential cost of partnering with the gambling industry. Portland Trail Blazers coach Chauncey Billups, a former Detroit Pistons star and an NBA Hall of Famer, was arrested for his alleged role in rigged illegal poker games that prosecutors say were tied to Mafia crime families. Miami Heat guard Terry Rozier was charged with manipulating his play for the benefit of bettors and former NBA player and
The DBS Foundation yesterday announced the launch of two flagship programs, “Silver Motion” and “Happier Caregiver, Healthier Seniors,” in partnership with CCILU Ltd, Hondao Senior Citizens’ Welfare Foundation and the Garden of Hope Foundation to help Taiwan face the challenges of a rapidly aging population. The foundation said it would invest S$4.91 million (US$3.8 million) over three years to foster inclusion and resilience in an aging society. “Aging may bring challenges, but it also brings opportunities. With many Asian markets rapidly becoming super-aged, the DBS Foundation is working with a regional ecosystem of like-minded partners across the private, public and people sectors
BREAKTHROUGH TECH: Powertech expects its fan-out PLP system to become mainstream, saying it can offer three-times greater production throughput Chip packaging service provider Powertech Technology Inc (力成科技) plans to more than double its capital expenditures next year to more than NT$40 billion (US$1.31 billion) as demand for its new panel-level packaging (PLP) technology, primarily used in chips for artificial intelligence (AI) applications, has greatly exceeded what it can supply. A significant portion of the budget, about US$1 billion, would be earmarked for fan-out PLP technology, Powertech told investors yesterday. Its heavy investment in fan-out PLP technology over the past 10 years is expected to bear fruit in 2027 after the technology enters volume production, it said, adding that the tech would
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