The Financial Supervisory Commission (FSC) yesterday banned Far Glory Life Insurance Co (遠雄人壽) from making real-estate investments for six months over violations of real-estate investment and telemarketing rules. The penalty also includes a NT$5.1 million (US$170,700) fine.
“The investment ban will stay if Far Glory Life fails to come up with plans to avoid repeats of violations within six months,” FSC Vice Chairman Wu Tang-chieh (吳當傑) told a media briefing.
Farglory Life, a subsidiary of Farglory Group (遠雄企業團), which also owns Farglory Land Development Co (遠雄建設), used employees as dummy buyers to secure five plots of land worth NT$1.1 billion in Taipei’s Neihu District (內湖) and New Taipei City’s (新北市) Tucheng District (土城) between 2009 and 2010, the commission said
It was the second time Farglory Life has been caught violating real-estate investment rules.
In April last year, the insurer was banned from real-estate investments for a year because of similar violations linked to the acquisition of two plots of land in Sinjhuang (新莊), New Taipei City, in 2008.
The purchase of the two plots in Sinjhuang — worth a total of NT$2.5 billion — involved the use of dummy accounts by a mother and son, and incurred a fine of NT$11.7 million for Fargloary Life, the most severe given to a financial institution, Insurance Bureau Deputy Director-General Joanne Tseng (曾玉瓊) said.
The FSC also imposed a NT$3 million fine on Bank SinoPac (永豐銀行) over loose internal control and asked it to dismiss the offending employee.