A Study of Ethical Issues in the Securities Investment Trust Industry

• Main Authors: Chien-Ching Chiu, 邱謙清
• Other Authors: Tzu-Kuan Chiu
• Format: Others
• Language: zh-TW
• Published: 2006
• Online Access: http://ndltd.ncl.edu.tw/handle/47189582479056339903

碩士 === 國立中央大學 === 財務金融學系碩士在職專班 === 94 === Abstract The mutual fund originated from Europe and boomed in the United States where a-hundred-year development nevertheless has produced a series of scandals. In Taiwan during these 23 years some drawbacks happen yet in strong business competition, including overstating fund performances, fictitious advertisements, late trading, market timing, and fund manager’s ethical problems, and absence of completed legal controls and industrial self regulations, and the one eventually suffering losses is the fund investor(principal). Although scandals among mutual fund companies in Taiwan were often heard, the supervising institutes and judicial departments conducted less active investigations or penalties. The responsible administrative institute did not become alert until United Investment Trust event, and thus took a number of preventive measures. The lucky thing is that the financial market finally gets rid of risks without inducing significant disasters. In 2004 the supervising institute enacted new regulations and promulgated Securities Investment Trust and Consulting Act on June 30th, and required the investment association to organize self regulations to ask for members’ self disciplines and enactment of Manager Principles for Securities Investment Trust. During 2 years for legal enhancement, it appears effective in the relatively short period that investor’s benefits are primarily considered, the negative image of the fund industry is removed, and the robust development for the overall industry initiates.