Taiwan FSC Chair Rejects Claims of Lax Oversight in Former Cathay United Bank Chairman’s Outside-Role Controversy

Kuo Ming-chien took on an independent directorship at Alchip Technologies on May 29, 2025, while serving as chairman of Cathay United Bank and a director of Cathay Securities Investment Trust. Failures in related-party reporting and internal controls within the group led Cathay Securities Investment Trust funds and discretionary accounts to inadvertently breach investment restrictions. Eight funds had to recalculate their net asset values, with fund compensation totaling about NT$490 million and discretionary-account losses reaching NT$454 million, highlighting corporate-governance risks at the financial group.

The Financial Supervisory Commission began an on-site inspection of Cathay Securities Investment Trust on June 25. FSC Chair Peng Jin-lung told lawmakers on July 1 that the commission had requested additional documents at least three times, conducted three rounds of questioning and sent two formal letters. He rejected accusations of regulatory inaction and of shielding a former superior, saying Cathay’s governance had indeed failed. On July 2, the FSC deployed six teams to inspect Cathay Financial Holding and its banking, life insurance, property and casualty insurance, securities and asset-management units, seeking to clarify reporting and control mechanisms across the group.