Cathay FHC has set up a "Corporate Sustainability Committee" under the board of directors and has set up a "Sustainable Governance Working Group" to promote corporate governance matters such as integrity management, anti-corruption, anti-bribery and compliance with the group, and report to the board of directors every six months. The Administrative Office of Cathay FHC set “Policy and Code of Operation Integrity”, and the formulation, amendment, or repeal of this policy and code shall be subject to the approval of the board. The board of directors has made great efforts to ensure that the integrity management policies are implemented. Furthermore, in order to improve the integrity of the company, the auditing unit shall incorporate the compliance with this code into the scope of the investigation and report to the board on a regular basis the lack of improvement.
Cathay FHC shall conduct business activities in a fair and honest manner. Before the business dealings, Cathay FHC shall take into account the legality and credibility of the commercial objects. It shall avoid trading with the record of dishonesty and sign with others contract should contain integrity terms. The directors shall uphold the high degree of self-discipline and shall, when they have an interest in their own motions, should explain the important contents of their own interests when the board of directors is concerned. If the directors are interested in the interests of Cathay FHC, they shall not be included in the discussion and voting, and shall be avoided when discussing and voting, and shall not act on behalf of other directors to exercise their voting rights. For more detailed information: Cathy Financial Holdings Policy and Code of Operation Integrity
Cathay held training courses related to business integrity in 2019 in order to implement business integrity and ethical conduct (such as annual training courses regarding the Code of Conduct for Employees and compliance for newcomers), which amounted to a total of 1,026 hours with 664 participants.
Furthermore, Cathay FHC established the Code of Conduct for Reporting Illegal, Unethical or Dishonest Cases, which establishes reporting channels, specifies procedures for handling cases, and protects the legal rights of the involved parties. The Regulations also specify that the identity of all involved parties, including the whistleblower and investigation personnel, shall remain confidential and be protected to prevent unfair treatment or retaliation. We were not involved in any immoral or unethical conduct in 2019.
Preventing Insider Trading
Cathay FHC submits “Notes on Reporting of Insider's Equity Change in the Company” when the insiders such as directors, managers and others take office to comply with it, so as to avoid violations or occurrences of insider transactions. In addition, Cathay FHC also files the "Director's Manual" and the "Compliance Brochure for Directors and Supervisors of TWSE/TPEx-Listed and Emerging Market Companies", "Directions of Securities Market Regulatory for the TWSE/TPEx-Listed company and its directors, supervisors and major shareholders" and "Compliance Brochure for Independent Directors" and other information which are compiled by the Taiwan Stock Exchange Corporation when the Directors take office to assist Directors in understanding the laws and regulations related to securities transactions and listing rules and other relevant reporting matters and legal responsibilities.
In addition, in order to standardize the procedures of disclosure and management mechanisms of Cathay FHC and its subsidiaries’ material information, Cathay FHC established “Guidelines/Regulations of Disclosure of Cathay FHC and its subsidiaries’ Material Information ”and “Regulations of Press Conferences Concerning Material Information of Cathay FHC and its subsidiaries” by referring to the“ Taiwan Stock Exchange Corporation Procedures for Verification and Disclosure of Material Information of Companies with Listed Securities”. Through disclosing those rules mentioned above in the rules and regulations zone of Cathay FHC’s internal website, personnel throughout all levels of the Company can enquiry at any time, so as to avoid violating or occurring insider trading.
Cathay FHC also has stipulated “Policy and Code of Operation Integrity”, “Procedures and Guidelines of Integrity Management Operation”, “Code of Ethics” and “Code of Conduct of Employees”, all of which contain the relevant provisions of “Prohibition of Insider Trading”. Cathay FHC holds educational trainings annually for directors, managers, and employees on the "Code of Integrity, Ethics, and Conduct," and the 2019 training has been completed in December, 2019:
For understanding and complying Cathay FHC’s "Policy and Code of Operation Integrity", " Procedures and Guidelines of Integrity Management Operation" and "Code of Ethics", the Company submits those rules and policies to the Directors, and publishes on the internal educational training platform for employees to check at any time. Besides to the prohibition of insider trading, the educations and trainings include the contents and cases of anti-money laundering, prohibition of getting gifts and hospitality, participation in public affairs, political contributions, etc.