Taiwan’s FSC Fines Bank SinoPac $570k over Violations
After learning that Bank SinoPac had improperly sold insurance products while operating as an insurance agent, the Financial Supervisory Commission of Taiwan (FSC) fined the bank $570k (NT$18m) and issued an official reprimand. The bank had persuaded customers to use loans to buy wealth management products. It had also tied housing loans to the sale of related mortgage life insurance products.
The bank's president and the top supervisor of its channel business were both ordered to be suspended for a combined three months by the regulatory watchdog.
The FSC further ordered that the bank cease all sales of new life insurance policies in its capacity as an insurance agent for approximately one month and to suspend for a period of six months the conduct of brokered investments in foreign bonds for new clients and the sale of mortgage life insurance products connected to the bank's own housing loans.
Earlier, the island's regulator also levied a $310,000 (NT$10,000,000) fine against Taishin International Bank for improperly attempting to collect payments from parties other than the debtors or their guarantors while conducting its lending business and failing to set up internal controls for allowing sales representatives to change the approved interest rate (fees).
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