The Financial Supervisory Commission (FSC) on Thursday penalized Shin Kong Financial Holding Co (新光金控) for poor corporate governance and lax internal controls, including a three-month suspension for company chairman Victor Hsu (許澎).
The commission also fined subsidiary Shin Kong Life Insurance Co (新光人壽) NT$3 million (US$105,623), cut Shin Kong Life Insurance chairman Pan Po-cheng’s (潘柏錚) salary by 30 percent for three months and banned the insurer from making transactions with six affiliated companies for three years.
Senior executives of Shin Kong Financial Holding and its subsidiaries, which also include Shin Kong Commercial Bank (新光銀行) and Master Link Securities Corp (元富證券), attended four meetings presided over by Eugene Wu (吳東進) — who retired from Shin Kong Financial Holding in June 2020 and was suspended as chairman of the life insurance arm by the commission in September 2020 — from October to November last year regarding the group’s business operations and allocation of resources, the commission said in a statement.
Photo: Wu Chi-lun, Taipei Times
The meetings and Wu’s involvement indicated that senior executives were still takng orders from him, even after the commission in 2020 barred him from being involved in the group’s business, citing his poor supervision, the statement said.
As the head of Shin Kong Financial Holding, Hsu has the responsibility to supervise its operations and management, and to oversee management of subsidiaries, the commission said.
He failed to fulfill his duty in contravention of Artical 54 of the Financial Holding Company Act (金融控股公司法), it said.
The commission ordered Shin Kong Financial Holding to review and amend its internal regulations on major shareholders, develop specific measures to improve the group’s corporate governance and submit a report to the board of directors, the statement said.
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