, Taiwan
632 view s
Stock photo. Credits to Unsplash.

Taiwan regulator fines Bank SinoPac $570k over regulatory rules breach

The FSC also ordered the bank to suspend its president for three months.

The Financial Supervisory Commission of Taiwan has fined Bank SinoPac $570k (NT$18m) and issued the bank an official reprimand after discovering that the bank had induced customers to use loans to purchase wealth management products, conditioning the provision of housing loans on the sale of tied-in mortgage life insurance products, and improperly selling insurance products while conducting its insurance agent business. 

According to the FSC these deficiencies violated Article 45-1, paragraph 1 of the Banking Act, and also possibly disturbed the sound operations.

ALSO READ: Australian regulator removes CBA’s operational risk capital add-on

The regulatory watchdog then ordered the bank to suspend the president from performance of duties for three months as well as suspend the top supervisor of its channel business for six months.

The FSC also ordered that the bank suspend for six months the conduct of brokered investments in overseas bonds for new customers and the sale of mortgage life insurance products that are tied to the bank's own housing loans and to stop, for approximately one month, all sales of new life insurance policies in its capacity as an insurance agent, until such time as the FSC recognizes that proper corrective actions have been taken.
 

Follow the link for more news on

Join Asian Banking & Finance community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!