News Videos
World
International Edition

Friday

July 21, 2017

Breaking News, World News and Taiwan News.
About Us
E-Newsletter
Advertise
Contact Us

8 banks fined for selling TRF outside regulatory boundaries

TAIPEI, Taiwan -- The Financial Supervisory Commission (FSC) yesterday announced the fining of eight local banks for selling the target redemption forward (TRF) without meeting regulations as set out in the Banking Act.

More specifically, the banks failed to establish an appropriate risk management mechanism, and did not conduct a thorough analysis of their customers purchasing TRF, the FSC said.

The FSC previously launched an investigation into nine banks, with CitiBank Taiwan the only bank that was not fined by the FSC.

EnTie Bank (安泰銀行) and CTBC Bank were both fined NT$2 million, while six other banks - Taishin International Bank (台新銀行), Taipei Fubon Bank (台北富邦銀行), E. Sun Bank (玉山銀行), Shin Kong Bank (新光銀行), Cathay United Bank (國泰世華) and Ta Chong Bank (大眾銀行) – were fined NT$4 million each.

Bank SinoPac (永豐銀行) was earlier fined NT$10 million by the FSC and banned from engaging in TRF business for one year.

The FSC said the banking industry should re-evaluate its performance-based rewarding system, so as to remove potential conflict of interest between customers and salesmen.

The FSC also said it would consider banning sales of TRF, since it is not a new financial product, and has been sold in Taiwan for many years.

The banks fined by the FSC will have to correct their practices and obtain approval from the FSC before they may begin selling TRF again. Banks will need to classify TRF offerings based on different risk levels and match them with customers accordingly.

The nine banks which were under investigation will have three months to make the needed adjustments.

MOST POPULAR OF THIS SECTION
1
Food Taipei: A springboard for El Salvadoran products
2
Taiwan's postage stamp prices are being raised for the first time in 26 years
3
Ko Wen-je told China straight-up that Tsai Ing-wen will be called president, not leader
4
LATEST: Chinese dissident Liu Xiaobo dies, Chinese government says
5
A blogger in Vietnam will spend 10 years in jail for comments about a Taiwan-owned factory's chemical spill
6
As it happened: 1 dead, 2 critical, 13 more injured in gas explosions
7
Updated with video: Riders are leaving their oBikes everywhere and some government officials won't take it anymore
8
LATEST: China 'has gotten an apology' after the White House confused the PRC and ROC
9
This blog is a lifesaver for Taipei parents with a toddler
10
Getting divorced in Taiwan? From custody to child support, this is what you need to know
Advertise  |   RSS Feed  |   About Us  |   Contact Us
Home  |   Taiwan  |   China  |   Business  |   Asia  |   World  |   Sports  |   Life  |  
Arts & Leisure  |   Health  |   Editorial  |   Commentary Travel  |   Movies  |   Guide Post  |   Terms of Use  |  
  chinapost search