The Financial Supervisory Commission (FSC) on Thursday last week fined Nan Shan Life Insurance Co (南山人壽) NT$6.6 million (US$1.8 million) for failing to supervise a manager involved in illegal stock disclosures.
Managers who oversee stock trades cannot disclose to others which shares are to be bought or sold so that conflict of interest is avoided, Insurance Bureau Deputy Director-General Wang Li-hui (王麗惠) said.
A Nan Shan manager surnamed Yeh (葉) reportedly disclosed trading information to more than 200 people on the Line messaging app, Wang said.
Yeh reportedly leaked the information to his wife, who worked at a securities investment company, so that the couple could trade the same shares and manipulate the prices, Wang added.
Yeh, having worked at Nan Shan since March 2016, should have known regulations regarding information control and avoiding conflicts of interest, Wang said.
Nan Shan became aware of the incidents in May last year, but did not report them to the commission until July, Wang said, adding that the company submitted a report to the commission when it learned that Chinese-language media were about to break the story.
Nan Shan was fined NT$4.8 million after failing to enforce internal control mechanisms, and NT$1.8 million for failing to report the matter promptly, Wang said.
Nan Shan said in a statement that the manager’s conduct had not affected client benefits and that Yeh, who quit last year, would have to reimburse the company.
Yeh is to be barred from working in the Taiwanese insurance industry for five years, Wang said.
This year, Nan Shan has been fined five times for a total of NT$16.8 million, the bureau said.
POOR INTERNAL CONTROLS: Insurance Bureau Director-General Shih Chiung-hwa said the company is expected to get back on track while its chairman is suspended The Financial Supervisory Commission (FSC) yesterday fined Shin Kong Life Insurance Co (新光人壽) NT$27.6 million (US$939,415) for a reckless investment that endangered its solvency, and suspended its chairman Eugene Wu (吳東進) for poor supervision. The penalty is the second-highest in a single case after Nan Shan Life Insurance Co (南山人壽) was fined NT$30 million in September last year and its chairman Du Ying-tzyong (杜英宗) suspended for two years, the commission said. In three rounds of special and regular examinations conducted since last year, the commission found that Shin Kong Life had given too much power to an asset and liability management committee
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