Information on fund investment should also become more transparent, and any investment of individual stocks leading to a 20 percent loss should be publicized so that the public would know which securities firm has a bad record, Tsai said.
DPP caucus whip Pan Men-an (潘孟安) said the DPP had always asked for the government to periodically announce information concerning the handling of the labor insurance, labor pension, public service pension and postal savings funds.
“It is only reasonable as the various government funds have invested at least NT$800 billion in the stock markets, and we should know what investments are being made and how many shares are being held by the funds,” Pan said.
Pan criticized the government’s citing of “commercial secrets” as evasive, adding that it was the opaqueness of operation that caused government funds to be targeted in the first place.
Meanwhile, ING SITC insisted the scandal stemmed from malpractices of a former employee and it was not fair to blame losses on the firm.
“As a global asset manager, the company will not allow individual associates to set its policy or investment decisions,” the company said in a statement.
The company has helped the Labor Pension Fund grow its book value by more than NT$4 billion since being chosen as its unconditional asset manager in 2006, the statement said.
Separately, the Securities Investment Trust and Consulting Association called on fund houses in a statement to strengthen internal oversight and self-discipline to minimize malpractice.
The trade group painted the dispute involving ING SITC as “misbehavior on the part of a few individuals” for which the Financial Supervisory Commission has dealt due punishment to the company and its employee, the statement said.
The association said fund houses should step up internal control and improve business accountability and transparency to win public confidence, the statement said, adding that investors can help by tipping authorities off on any irregular activity.
Additional reporting by Amy Su and Crystal Hsu