Date of announcement 2022/08/03
Time of announcement 05:16:25
Date of events 2022/08/02
To which item it meets paragraph 39

1.Date of occurrence of the event:2022/08/02
2.Circumstances of the violation:
According to the press release on the website of the Financial Supervisory
Commission, CDFH was found deficiencies in the financial examination.
CDFH was found unsatisfactory corporate governance, insufficient internal
controls, and inadequate management to subsidiaries.
The related deficiencies are in violation of Article 51 of the “Financial
Holding Company Act”, and Article 3 & Article 8 of the “Implementation
Rules of Internal Audit and Internal Control System of Financial Holding
Companies and Banking Industries”, which was established under the
authorization or Article 51 of the “Financial Holding Company Act”.
It has possibly disturbed the sound operation, thus according to the
“Financial Holding Company Act”, a monetary penalty and a correction
were imposed, and the related personnel were punished.
3.Monetary amount of fines:NTD 20,000,000
4.Status of the injunction by the respective competent authority:
(1) Penalties on CDFH:
A monetary penalty of NTD 20,000,000 was imposed according to the Paragraph
16, Article 60 of the “Financial Holding Company Act”.
One correction was ordered according to Paragraph 1, Article 54 of the
“Financial Holding Company Act”.
(2) Penalties on the individuals:
The Chairman was suspended from the duty of director for 6 months according
to Subparagraph 4, Paragraph 1, Article 54 of the “Financial Holding
Company Act”.The CEO's monthly salary was cut by 30% for three months
according to Subparagraph 7, Paragraph 1, Article 54 of the “Financial
Holding Company Act”.
5.Intended improvement measures:
CDFH will conduct relevant improvements in accordance with the instructions
from the FSC. CDFH operates smoothly and the rights and interests of
investors are not affected.
6.Effect on the Company’s business operations:None
7.Any other matters that need to be specified:None