Farglory Life Insurance Inc. subject to an NT$ 14.4 million penalty and barred from increasing its real estate investment within 3 years and carrying out loans or other transactions with interested parties.
2018-04-03
Since 2007, Farglory Life Insurance Inc. has relied on the Far Glory Group for the decisions and execution of the investment and development projects of self-owned real
estate and has not set up an internal control system for its real estate investment and development activities. Although the company has introduced related guidelines, it has not applied such guidelines completely. In addition, the company has frequently violated regulations governing transactions with interested parties and has shown negligence in regard to capital utilization, reserve, underwriting and claim activities of insurance products, anti-money laundering activities, etc. This shows that the company’s internal control system and regulatory compliance mechanism have failed to work effectively, its corporate governance is seriously ineffective, and its responsible person and officers of related responsible departments have not fulfilled their responsibilities for sound management. Therefore, the FSC has imposed a NT$ 14.4 million penalty according to Paragraph 5 of Article 168, Paragraph 1 of Article 171, Paragraph 4 and Paragraph 5 of Article 171-1 of the Insurance Act, issued a reprimand according to Paragraph 1 of Article 149 of the Act, removed director Zhao and director Hsu from their positions according to Paragraph 6 of the same article, and ordered the company to dismiss General Manager Zhao and Manager Zhang of the real estate and lending department, according to Paragraph 4 of the same article. In addition, the FSC will not allow the company to increase its real property investment within 3 years according to Subparagraph 1, Paragraph 1 of Article 149 of the Insurance Act and this order will remain valid until the FSC grants approval after the company makes satisfactory improvement. The company is also prohibited from carrying out credit or other transactions with its interested parties and this order will remain valid until the FSC grants approval after the company makes satisfactory improvement.
estate and has not set up an internal control system for its real estate investment and development activities. Although the company has introduced related guidelines, it has not applied such guidelines completely. In addition, the company has frequently violated regulations governing transactions with interested parties and has shown negligence in regard to capital utilization, reserve, underwriting and claim activities of insurance products, anti-money laundering activities, etc. This shows that the company’s internal control system and regulatory compliance mechanism have failed to work effectively, its corporate governance is seriously ineffective, and its responsible person and officers of related responsible departments have not fulfilled their responsibilities for sound management. Therefore, the FSC has imposed a NT$ 14.4 million penalty according to Paragraph 5 of Article 168, Paragraph 1 of Article 171, Paragraph 4 and Paragraph 5 of Article 171-1 of the Insurance Act, issued a reprimand according to Paragraph 1 of Article 149 of the Act, removed director Zhao and director Hsu from their positions according to Paragraph 6 of the same article, and ordered the company to dismiss General Manager Zhao and Manager Zhang of the real estate and lending department, according to Paragraph 4 of the same article. In addition, the FSC will not allow the company to increase its real property investment within 3 years according to Subparagraph 1, Paragraph 1 of Article 149 of the Insurance Act and this order will remain valid until the FSC grants approval after the company makes satisfactory improvement. The company is also prohibited from carrying out credit or other transactions with its interested parties and this order will remain valid until the FSC grants approval after the company makes satisfactory improvement.
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Update:
2018-05-07