Taiwan International Securities Corp (TISC, 金鼎證券) yesterday appointed board director Chang Hung-ying (張鴻瀛) to serve as acting chairman after the Financial Supervisory Commission (FSC) on Thursday suspended incumbent chairman Lawrence Chang (張元銘) for one year.
The new acting chairman is the elder brother of group chairman Chang Ping-chao (張平沼), who is Lawrence Chang’s father.
“We’ve received the commission’s notice today [Friday] and have had to appoint an acting chairman,” Fred Chang (張慶隆), the firm’s spokesman and executive vice president, said by phone. “But we disagree with the commission’s punishment and plan to file an administrative appeal soon.”
Lawrence Chang became chairman in July 2006. However, he was punished by the regulator for the firm’s alleged flaws in the partial liquidation of its structured note investments before the end of 2005, the spokesman said.
“TISC regrets the FSC’s misunderstanding,” the brokerage said in an exchange filing yesterday.
In response, FSC Chief Secretary Lu Ting-chien (盧廷劼) said the commission decided to punish the chairman after a routine regulatory review last year when Lawrence Chang was in office and failed to supervise the liquidation’s aftermath, as well as several other instances of management negligence.