Farglory Life fined over corporate governance breach

April 6 2018 by InsuranceAsia News Staff

Taiwan’s Financial Supervisory Commission (FSC) has imposed heavy penalties on Farglory Life Insurance for allegedly breaching rules on corporate governance in a series of real estate development projects.

The regulatory body has slapped Farglory Life with a NT$14.4 million (US$494,030) fine, the highest it has ever imposed on a life insurer.

On top of the fine, the commission has also disallowed the company from launching new property development projects, extending loans to interested parties, or extending loans on unsold property units for three years.

Farglory Life is a unit of the Farglory Group, whose core business is land and property development, and construction.

The FSC has also ordered the dismissal of Far Glory Group founder Chao Teng-hsiung from the life insurer’s board of directors following the controversy.

Farglory Life president George Chao, Chao Teng-hsiung’s second son, was also ordered to leave his post along with two other executives.

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