To enforce ethical management, TCFHC has the “Ethical Corporate Management Best Practice Principles” and the “Ethical Management Procedures and Code of Conduct” in place to provide direction for the Company's ethical management activities. The ethical management policy and methods are disclosed explicitly in the official website and annual reports and external documents in order to raise awareness and prevent unethical conduct. At least once a year, the Ethical Management Committee reports the status of ethical management in the relevant units and results of investigations regarding tip-off cases.

In order to push ahead with the effective implementation of ethical management, in addition to complying with regulations governing business conducts including the “Financial Holding Company Act”, “Company Act”, “Securities and Exchange Act”, “Business Entity Accounting Act”, and “Ethical Corporate Management Best Practice Principles for TWSE/TPEx Listed Companies”, TCFHC has stipulated of its own bylaws of “Ethical Corporate Management Best Practice Principles”, and “Ethical Management Procedures and Code of Conduct” by referring to the “Anti-Corruption Act”, “Government Procurement Act”, and “Act on Recusal of Public Servants Due to Conflicts of Interest”. TCFHC expects that a well-planned regulatory framework can help inducing all members and staffs to comply with principles of ethical management and improving the governance mechanism and operational development.

In order to fulfill the commitment to ethical management, TCFHC has the “Declaration on the Compliance of Ethical Management by Directors and Senior Management” in place. The declaration has been signed by 100% of the members of the 4th Board of Directors and the executive management team in 2021. Furthermore, 100% of the employees of the Company and TCB signed the Statement of Employee Code of Conduct in 2022. All subsidiaries report the status of compliance with the Ethical Corporate Management Best Practice Principles to their respective Board of Directors every year. The status of compliance with the Ethical Corporate Management Best Practice Principles in 2021 was all reported to the respective Board of Directors in 2022.

In order to prevent unlawful conduct and ensure the practice of ethical management in the Company, TCFHC established the “Measures for Whistleblowing” in 2018. The Measures for Whistleblowing rules that if any employee with TCFHC or its subsidiaries is found to have provided, received, promised, or requested any illegitimate benefits in order to receive or maintain benefits, or to have engaged in any conduct that may break integrity or entrusted compulsory, or to have been suspected for committing crime or fraud, or violating financial related regulations, anyone can raise such a case or report to the Ethical Management Committee through designated email address on the website or internal hotline, then the Auditing Department of the Board of Directors or other designated unit in charge will carry out with the investigation.

All the procedures of investigation and results regarding tip-off cases shall be properly documented and then be submitted to the Ethical Management Committee for reference as well as be reported to the Board of Directors. The identity of the whistleblower shall be kept confidential and neither should there be any damage to the rights and interests of nor any adverse act against the whistleblower. The whistleblower may be rewarded depending on the circumstances of the case. In 2021, there was no such thing as aforementioned being occurring in the TCFHC Group. In 2021, there was a total 4 cases being reported via the tip-off email address, and all of the cases had been investigated and closed without having any evidence of violation found out.

TCFHC has added elements and rules of ethical management to the “Guidelines of Service and Conducts by Employees” and the “Supplier Management Policy”. The purpose is to require employees not directly or indirectly provide, promise, demand or accept any inappropriate benefit or engage in any other unethical behavior in the process of conducting a business activity or performing a duty. In order to let all employees understand the importance of ethical management, TCFHC holds ongoing ethical management related educational trainings every year and requires all employees undergo the training.

In 2021 there was not any TCFHC subsidiary violating the principle of ethical management or making any flaw with significant impact. Neither did any of TCFHC subsidiaries commit any conduct involving fraud, insider trading, anti-competition, anti-trust, or monopoly, nor such conduct as manipulating the market, making inappropriate charity donations or sponsorships in violation of the code of conduct. Number and value of relevant lawsuit are both 0.