On November 24th, the Financial Supervisory Commission of Taiwan (FSC) announced the administrative fines about the personal misconduct made by a former financial advisor at Fengshan Branch. An administrative fine of NT$20 million (US$700,000) was imposed. Three months’ suspension of duty was applied to Chief Executive of Consumer Banking Division and head of Wealth Management Division. This misconduct involved an embezzlement and inappropriate personal transactions (amount TWD $140 million (equiv. to USD $4.9 million)) between the former financial advisor and customers. The personal misconduct was discovered by E.SUN after implementation of a scheduled job rotation plan among financial advisors. E.SUN immediately reported the case to the regulator and proactively cooperated with the prosecutor officers. Meanwhile, customers’ right is secured in entirety.
E.SUN deeply regrets the incidence of internal control failure regarding the financial advisor. The cases were illegality committed by individual who formerly worked at E.SUN. No significant influence on operational and financial aspects was resulted. Meanwhile, E.SUN carried out a thorough self-examination and seeked for improvement in a responsible manner. E.SUN has enhanced many aspects of business, including operational process, risk management, internal audit and control, and the culture of discipline. Corrective measures that have been implemented includes: prohibition on financial advisors from handling of deposit/remittance transactions, enhancement of transaction verification mechanism, phone confirmation by a third person for distant transactions, and a scheduled job rotation among financial advisors, etc.
Trust is the foundation of financial industry. E.SUN has a zero tolerance policy on personal misconducts. E.SUN does not only abided by regulations, but has also mandated an independent professional external consultant to examine effectiveness relating to relevant measures. E.SUN will keep improving with strong determination and disciplined actions to eradicate similar incidence.
