Wed, Jan 08, 2020 - Page 12 News List

Advertisements land Jko Asset in hot water with FSC

By Kao Shih-ching  /  Staff reporter

A new fund management service proposed by Jko Asset Management Co (街口投信), a unit of Jko Fintech Co (街口金融科技) and its business partners, could not guarantee customers a fixed return, the Financial Supervisory Commission (FSC) said yesterday.

Jko Fintech’s electronic payment service, Jkos Pay (街口支付), earlier this month posted advertisements that said consumers would earn returns of at least 1.5 percent if they purchased funds managed by Jko Asset Management by using Jkos Pay.

“We will not allow such promotional activity, as no fund management service can promise a return to their clients according to the Regulations Governing Securities Investment Trust Enterprises [證券投資信託事業管理規則],” Securities and Futures Bureau Deputy Director Sam Chang (張振山) told a news conference in New Taipei City.

Although the investment firm told the bureau that another firm had posted the ads, the bureau would scrutinize the service when it is launched, Chang said.

The commission last month eased regulations to enable consumers to purchase New Taiwan dollar-denominated funds by using electronic payment tools, but a securities investment trust and consulting unit must amend its deed and gain the FSC’s approval before launching such a service, and Jko Asset Management had failed to do so, Chang said.

Jko Asset Management told the Taipei Times that it would delay the launch, scheduled for Monday next week, and would release more details today.

In a filing with the Taiwan Stock Exchange, it said chairman Kao Wu-chung (高武忠) had been dismissed and that Jko Fintech chairman Kevin Hu (胡亦嘉) would serve as acting chairman of the asset management company. Jko Fintech was formerly known as Jkos Network Co.

Comments will be moderated. Keep comments relevant to the article. Remarks containing abusive and obscene language, personal attacks of any kind or promotion will be removed and the user banned. Final decision will be at the discretion of the Taipei Times.

TOP top