The Financial Supervisory Commission on Tuesday imposed heavy penalties on Farglory Life Insurance Co (遠雄人壽) for breaches of corporate governance regulations in a series of real-estate development projects.
The commission fined Farglory Life Insurance NT$14.4 million (US$494,030) — the steepest fine it has ever imposed on a life insurer.
It also barred the company from launching new property development projects, extending loans to interested parties and extending loans on unsold property units for three years.
Farglory Life Insurance is a unit of the Farglory Group (遠雄集團), the core business of which is land and property development, and construction.
The commission ordered the dismissal of Far Glory Group founder Chao Teng-hsiung (趙藤雄) from the life insurer’s board of directors.
Farglory Life Insurance president George Chao (趙信清), Chao Teng-hsiung’s second son, was also ordered to leave his post along with two other executives, the commission said, adding that both Chaos would be barred from holding positions at financial institutions for the next five years.
A routine financial examination revealed that Farglory Life Insurance did not follow the rules for transactions and lending between insurance enterprises and interested parties, disregarding its internal controls, the commission said.
The commission found that from 2007, the life insurer had favored its conglomerate affiliates and had awarded contracts for 14 property development projects on its land holdings to interested parties.
Farglory Life had failed to assess the risks of using premiums paid by policyholders in pursuing its property development projects, Insurance Bureau Deputy Director-General Chang Yu-hui (張玉輝) said.
In addition, the life insurer is facing a total exposure of NT$4.9 billion from unsold property units, Chang said.
The breaches represent a total breakdown of internal controls at the life insurer, as contracts for all phases of property development projects were awarded to its affiliates instead of letting third-party bidders compete for them, he said.
About 10.3 percent, or NT$40 billion of the life insurer’s assets are tied up in ongoing property development projects, and the company’s operations would not be affected in the absence of new projects, Chang said.
Farglory Life Insurance said that chairman Roy Meng (孟嘉仁) would serve as its interim president, and that the firm is committed to recruiting industry professionals to lead its management.
The life insurer reported that its net income last year rose 123 percent to NT$1.93 billion, while maintaining strong financial resilience with a risk-based capital ratio of 300 percent. Earnings per share were NT$1.55.
Softbank Group Corp plans to keep a stake in the chip designer Arm Ltd, even if it sells a partial interest to Nvidia Corp, the Nikkei reported. The companies are negotiating terms, the newspaper reported, citing sources. Softbank might take a stake in Nvidia after it buys Arm, the report said. Nvidia and Arm might also merge through a share swap, and Softbank would become a major shareholder in the combined company, it said. The two parties aim to reach a deal in the next few weeks, the sources said, asking not to be identified because the information is private. Nvidia is the
Gold surged to a fresh record on Friday, fueled by US dollar weakness and low interest rates, while silver headed for its best month since 1979. Spot bullion is up more than 10 percent this month, as US real yields lingered near record lows. While the ferocity of rallies in gold and silver cooled in the middle of the week, most market watchers predict there might be more gains ahead. Both metals have added about 30 percent this year, with gold and silver exchange-traded funds boosting holdings to a record, as concern about the fallout from the COVID-19 pandemic fuels demand for
MOVING FROM CHINA? The article did not name the company, but Foxconn, Wistron and Pegatron were among firms chosen for a production-linked incentive plan in India An Apple Inc vendor is looking at shifting six production lines to India from China, which could result in US$5 billion of iPhone exports from the South Asian nation, the Times of India reported, citing people familiar with the matter who it did not identify. The establishment of the facility would create about 55,000 jobs over about a year, the newspaper reported, not naming the Apple vendor. It would also cater to the domestic market and expand operations to include tablets and laptops, the newspaper reported. Samsung Electronics Co and Apple’s assembly partners are among 22 companies that have pledged 110 billion
MediaTek Inc (聯發科) has hired a former US Department of Commerce official to help it navigate worsening US-China tensions that have already ensnared its customer Huawei Technologies Co (華為). Patrick Wilson, who most recently served as director of the department’s Office of Business Liaison, has been appointed vice president of government affairs at MediaTek USA to lead its public policy initiatives, the chip designer said in a draft press statement seen by Bloomberg News. Wilson previously worked at the Semiconductor Industry Association, where he led the trade group’s dealings with the US federal government. Technology companies with ties to or operations in China