Taiwan acquits foreign brokers over inappropriate TSMC research reports

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TAIPEI, April 25 (Reuters)Taiwan’s financial regulator allowed foreign brokers to behave inappropriately with analyst reports on chipmaker TSMC 2330.TW after lawmakers questioned whether they were making buy recommendations but actually selling the shares.

A Financial Supervisory Commission official told Reuters they had sent questionnaires to brokerages about their analyst reports on Taiwan Semiconductor Manufacturing Co Ltd (TSMC), a major Apple Inc. AAPL.O supplier and the world’s largest contract chipmaker.

The regulator, in a written response to lawmakers, a copy of which was reviewed by Reuters on Monday, said 10 brokerages, which it did not identify, produced 45 research reports on TSMC between December and mid- March.

He said brokerage analyst reports do not violate any regulations and investment decisions are made by professional investors who adjust their asset allocation in response to international market fluctuations and layout considerations. global.

Brokerage clients make their own decisions and do not necessarily operate in the direction suggested by research reports, he added, citing questionnaire responses.

TSMC’s Taipei-listed shares have fallen around 11% this year, while the broader market .TWII is down about 9%.

TSMC this month forecast a 37% increase in current-quarter sales and said it expects chip capacity to remain very constrained this year, amid a global crisis that has kept full order books and allowed chipmakers to charge high prices.

(Reporting by Emily Chan; Writing by Ben Blanchard; Editing by Robert Birsel)

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