The FSC  discovered that Sinopac Financial Holdings and Bank SinoPac had corporate governance and internal control deficiencies, including failures to properly manage subsidiaries, that constituted violations of Article 51 of the "Financial Holding Company Act" as well as Article 3, paragraph 1 and Article 8, paragraphs 1 and 2 of the "Implementation Rules of Internal Audit and Internal Control System of Financial Holding Companies and Banking Industries" (, the rules issued upon the authority of the said Article 51). An administrative fine of NT$10 million was imposed upon Sinopac Financial Holdings on the basis of Article 60, subparagraph 16 of the "Financial Holding Company Act," an official reprimand was issued on the basis of Article 54, paragraph 1 of the same Act, and the monthly salary of the chairperson of Sinopac Financial Holdings was cut by 30% for six months on the basis of subparagraph 7 under paragraph 1 of said Article 54 of the same Act. Meanwhile, an official reprimand was issued on Bank SinoPac on the basis of Article 61-1, paragraph 1 of the Banking Act, and the monthly salary of Mr.Liao, then Head of Legal Division at Bank SinoPac, was cut by 30% for three months on the basis of subparagraph 9 under paragraph 1 of the same Article.