Announcement of penalty imposed by the FSC on CTBC FHC

1.Date of occurrence of the event:2023/08/10
2.Circumstances of the violation:The Company was found to have significant
deficiency of corporate governance, the relevant internal controls have
failed to operate effectively, and the management of its subsidiaries has
not been properly carried out, which violates Article 51 of the Financial
Holding Company Act and Paragraph 1 of Article 3 and Paragraph 1 and 2 of
Article 8 of the Implementation Rules of Internal Audit and Internal Control
System of Financial Holding Companies and Banking Industries, and disturbes
the sound operation of the Company.
3.Monetary amount of fines:NTD 30 million
4.Status of the injunction by the respective competent authority:
(1)Penalties on CTBC FHC:A monetary fine of NTD 30 million was imposed
according to Paragraph 16 of Article 60 of the Financial Holding Company
Act, and a correction was ordered according to Paragraph 1 of Article 54
of the same Act, and  a restriction of investments for 6 months (excluding
the capital increase of the original investment business or the equity
transfer of the original investment business due to organizational
restructuring) until the corrective actions are approved by FSC.
(2)Penalties on the individuals:In accordance with Subparagraph 4 of
Paragraph 1 of Article 54 of the Financial Holding Company Act, the
Chairman is suspended from his duties for 6 months, and the Vice Chairman
is suspended from his duties for 1 year. In accordance with paragraph 7 of
the same article, the monthly salary of the General Manager is reduced
30% for 3 months and 50% of all the remuneration of 2023 of the Advisory
Officer Mr. Chang is reduced for 1 year.
5.Intended improvement measures:The company will take corrective actions
by following FSC's guidances and requirements.
6.Effect on the Company’s business operations:a restriction of investments
for 6 months (excluding the capital increase of the original investment
business or the equity transfer of the original investment business due
to organizational restructuring) until the corrective actions are
approved by FSC.
7.Any other matters that need to be specified:None.