FSC to crack down on offshore firms

FRAUD CASE REACTION: From next year, public accountants must audit the financial statements of foreign-registered companies every six months as opposed to annually

Taipei Times
Date: Dec 07, 2020
By:. Chen Cheng-hui / Staff reporter

A Financial Supervisory Commission sign is pictured in an undated photograph in New Taipei City.
Photo: Kelson Wang, Taipei Times

The Financial Supervisory Commission (FSC) plans to strictly supervise foreign-registered Taiwanese companies listed on the Taiwan Stock Exchange after Tony Huang (黃文烈), the former chairman of Cayman Islands-registered Pharmally International Holding Co (康友製藥), was indicted for allegedly colluding with Chinese businesspeople to falsify accounts and financial statements.

In a written report to the Legislative Yuan, the commission said that it is scheduled to brief lawmakers on its measures to supervise the management of so-called “KY stocks” at a meeting of the legislature’s Finance Committee today.

KY stocks refer to overseas Taiwanese businesses with a primary listing on the nation’s main board.

The Taiwan Stock Exchange on Aug. 18 suspended trading of Pharmally shares pending the company’s second-quarter financial statement and the results of the investigation into Huang, who disappeared on Aug. 6 and is reportedly in Singapore.    [FULL STORY]

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