Cathay Financial Announces Major Leadership Changes: Liu Shang-Chi to Lead Cathay Securities Investment Trust, Veteran Chen Tsu-Pei Returns to Cathay United Bank

Cathay Financial Holding (2882-TW) announced today (16th) on behalf of its subsidiary Cathay Securities Investment Trust that, following a board resolution, Liu Shang-Chi will assume the role of new General Manager of Cathay Securities Investment Trust, with the appointment subject to regulatory approval.

Separately, Cathay Financial’s material information disclosure states that Chen Tsu-Pei, former chairman, will resume his role as Chairman of Cathay United Bank, effective July 17.

After Guo Ming-Jian stepped down as Chairman of Cathay United Bank, Vice Chairman Tsai Tsung-Han temporarily assumed the role. The bank is scheduled to hold a board meeting on the 17th, and it is widely expected that 84-year-old Chen Tsu-Pei will be re-elected as the bank’s chairman. Additionally, Chen Tsu-Pei will also serve as a director of Cathay Financial Holding, representing the legal entity of the 'Cathay United Bank Cultural and Educational Foundation.'

Liu Shang-Chi will step down from his position as Vice Chairman of Cathay Securities Investment Trust and take on the role of General Manager, effective upon approval by the Financial Supervisory Commission. Cathay Financial stated that it will leverage Liu Shang-Chi’s extensive industry and investment experience, integrating business and operational management to guide Cathay Securities Investment Trust toward stable growth and build a resilient organizational structure.

This leadership reshuffle follows last month’s scandal at Cathay Securities Investment Trust involving a violation of related-party transaction rules. At the time, Guo Ming-Jian, then Chairman of Cathay United Bank, also served as an independent director of World-SiP-KY. Due to a breakdown in internal controls, eight of the subsidiary’s mutual funds and discretionary accounts mistakenly purchased restricted stocks linked to related parties, resulting in losses of nearly NT$1 billion. In response, former Cathay Securities Investment Trust CEO Chang Yung-Chuan has resigned, citing inadequate supervision, and has issued a public apology to investors and the general public.