Veteran Adviser Tsu-Pei Chen Tipped to Return as Cathay United Bank Chairman
Cathay United Bank ranks among Taiwan's largest and most profitable private-sector banks. Former chairman Kuo Ming-jian also served as an independent director of Alchip Technologies, but the bank's Cathay Securities Investment Trust subsidiary failed to place Alchip shares on its related-party restricted list and conducted trades that violated the rules. Kuo resigned on June 26, 2026, amid public scrutiny. The senior management controversy has affected the power structure and compliance safeguards across Cathay Financial Holdings, making it highly significant for financial supervision and the protection of depositor confidence in Taiwan.
Cathay Financial Holdings announced on July 16, 2026, that it had appointed 84-year-old senior adviser Tsu-Pei Chen as a Cathay United Bank director effective July 17. He was expected to be elected the bank's new chairman. In response to the earlier trading violations, Cathay Securities Investment Trust completed NT$490 million in compensation payments to mutual fund beneficiaries on June 29. Total compensation for the funds and discretionary accounts involved reached NT$948 million, all of which was absorbed by the company.
All Coverage
1 original reportsThe Backstory
The history behind this eventCathay United Bank Chairman Kuo Ming-chien Resigns, Tsai Tsung-han Named Acting Chairman
Former Cathay United Bank Chairman Kuo Ming-chien also served as a director of Cathay Securities Investment Trust and an independent director of Alchip Technologies, or Alchip-KY. Because Cathay Securities Investment Trust funds invested in Alchip-KY, the appointments triggered related-party transaction rules and raised questions over outside positions and internal controls. The case has implications for governance at one of Taiwan’s largest financial groups and requires Cathay Securities Investment Trust to recalculate fund net asset values and compensate investors.
Cathay Financial Holdings announced on June 26, 2026, that Kuo had resigned with immediate effect from his positions at the holding company, Cathay United Bank and Cathay Private Equity. Bank Vice Chairman Tsai Tsung-han was named acting chairman. In a further statement on June 30, Kuo said all outside appointments had been reported and complied with laws and regulations, and that he had declined an invitation to become a senior adviser. Compensation for eight affected funds totaled about NT$490 million and covered roughly 50,500 beneficiaries.
Subscribe to Mark Radar Weekly
Every Friday, the week's strongest signals in your inbox. Unsubscribe anytime.
If you search news on Google, you can set Mark Radar as a preferred source—our coverage will show up more often in your results. Set as preferred source on Google →