Thu, Jan 12, 2017 - Page 12 News List

Protection center collects US$33m for investors

By Ted Chen  /  Staff reporter

The Securities and Futures Investors Protection Center yesterday said that it has collected NT$1.08 billion (US$33.82 million) in compensation on behalf of investors last year, marking a record high in the organization’s 14-year history.

“It was an eventful year and while not a desired outcome, we expect the trend to continue this year and in the future,” center chairman Chiu Chin-ting (邱欽廷) told reporters at a news conference in Taipei.

Chiu said that last year was defined by a number of high-profile cases, including a failed tender offer by local video game developer XPEC Entertainment Inc (樂陞科技); TransAsia Airways Corp’s (復興航空) sudden dissolution; and a computer glitch that suspended trading of Largan Precision Co (大立光) shares.

The bulk of the compensation was from a NT$500 million payment by CTBC Bank Co (中國信託銀行) and CTBC Securities (中國信託證券), which were involved in the XPEC case.

The payment was the result of mediation between the center and the two financial companies, Chiu said.

Although CTBC Financial (中信金控) continued to deny all wrongdoing and said that the payments were provided in the interest of fulfilling the company’s moral obligations, two of its subsidiaries were penalized by the Financial Supervisory Commission.

“Compensation notices were sent out investors last month and should provide some relief to those affected ahead of the Lunar New Year holiday,” Chiu added.

The center had seven court victories on behalf of investors last year and those rulings established precedents that would help in future cases, Chiu said.

The rulings should deter businesses from wrongdoing and improve corporate governance, Chiu said, adding that since its founding, the center has collected about NT$4.1 billion in compensation on behalf of investors.

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