Taiwan’s Financial Supervisory Commission (FSC) has launched an on-site inspection of Cathay Financial Holding’s fund arm, FSC chief Peng Jin-lung said at a parliament session on Wednesday.
The inspection follows a corporate governance scandal involving a top Cathay executive, Peng said.
The inspection will last through July 8, and further explaination will be made in seven days, Peng added.
Cathay Financial executive Kuo Ming-jian, who was also chairman of Cathay’s banking unit, resigned from all duties last week amid ethics concerns of conflict of interest with his position as an independent board member of Alchip Technologies, whose shares had been held by Cathay’s fund arm.
Cathay is Taiwan’s largest financial holding firm, and the fund unit is Taiwan’s largest fund management company.
Cathay’s president C.K. Lee will comment on the inspection later on Wednesday, a company executive said. Kuo could not be reached for comment.
Reuters
