Taiwan to penalise three more banks due to improper foreign currency derivative sales

TAIPEI, April 30 Tue Apr 29, 2014 11:23pm EDT

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TAIPEI, April 30 (Reuters) - Taiwan's financial regulator said on Wednesday it will penalise three more banks due to improper foreign currency derivative sales, after already punishing one bank for failing to disclose risks associated with such products.

The Financial Supervisory Commission (FSC) made the comments in a legislative session, though it did not disclose which banks would be punished or the nature of the punishment.

The FSC said on Monday it would bar Bank SinoPac, a unit of SinoPac Financial Holdings Co Ltd, from issuing new foreign-currency derivative products for one year.

Bank SinoPac had not properly hedged against foreign currency falls or warned clients of the potential for depreciation, the FSC said earlier.

The move comes as client complaints about losses mounted amid the recent sharp fall in the Chinese yuan. (Reporting by Emily Chan; Writing by Michael Gold; Editing by Kim Coghill)

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