Financial Sanctions Enforcement in Taiwan Imposes Heavy Penalties on China Development Financial Holding Co.

Strengthening Financial Regulations and Enforcement

The Financial Supervisory Commission (FSC) of Taiwan has imposed severe penalties on China Development Financial Holding Co. following a thorough examination that uncovered numerous corporate governance internal control deficiencies.

Violations of Key Provisions

According to FSC officials, the company failed to properly manage its subsidiaries, violating key provisions of:

• The “Financial Holding Company Act”
• “Implementation Rules of Internal Audit and Internal Control System of Financial Holding Companies and Banking Industries”

These violations not only compromised sound operations but also contravened Article 51 of the aforementioned Act.

Penalties Imposed

The penalties imposed on China Development Financial Holding Co. are a reflection of the severity of the infractions:

• An administrative fine of NT$20 million was levied
• An official reprimand was issued under Article 54, Paragraph 1 of the “Financial Holding Company Act”
• The company’s chairman has been suspended from his position for six months
• The general manager will receive a 30% cut in monthly salary for three months

Commitment to Enforcing Financial Regulations

The FSC’s actions demonstrate its commitment to enforcing financial regulations and ensuring that companies adhere to high standards of corporate governance. The agency’s efforts aim to:

• Maintain investor confidence
• Safeguard financial stability
• Prevent future breaches of regulatory requirements

By taking swift and decisive action, the FSC is sending a strong message that it will not tolerate violations of financial regulations and will take firm measures to protect the integrity of the financial system.