TWSE to revoke FINI status of an unidentified foreign company
By Kathryn Chiu , The China PostTAIPEI, Taiwan -- The Taiwan Stock Exchange (TWSE) on Monday confirmed that it will revoke the registration of an unidentified foreign institutional investor (FINI), the first-ever move of its kind adopted by Taiwan's securities regulators.
October 29, 2013, 12:22 am TWN
The TWSE yesterday revealed to foreign news agency that the foreign institutional investor was proven to have engaged in currency speculation, and will therefore have its FINI status annulled.
The cancellation of FINI status signifies that the unidentified foreign institutional investor will no longer be allowed to trade shares in Taiwan.
The foreign institution was reported last week by Taiwan's central bank to the Financial Supervisory Commission for currency speculation since it did not buy or sell any local shares with funds remitted to Taiwan.
According to Central News Agency, this is the first time a foreign institutional investor has had its FINI status revoked by Taiwanese regulators.
Reports of alleged currency speculation by the unidentified foreign institutional investors first emerged last week following a rare announcement by the central bank that it had uncovered incriminating evidence of wrongdoing.
The central bank last week stated that a company had been moving funds into Taiwan shortly after gaining FINI status from local regulators. However, the funds were held in the FINI account and then moved out of Taiwan soon later. According to the central bank, the act constitutes currency speculation.