Securities Company CEO Meeting Today (5th)
Eun Sung-soo, Chairman of the Financial Services Commission, is speaking at a meeting with CEOs of the financial investment industry held on the 5th at the Korea Financial Investment Association's main conference room in Yeouido, Seoul. At the meeting, Chairman Eun discussed cooperation measures between the government and the financial investment industry following the introduction of the Financial Consumer Protection Act (FCPA). Photo by Kim Hyun-min kimhyun81@
[Asia Economy Reporter Ji Yeon-jin] Eun Sung-soo, Chairman of the Financial Services Commission, pointed out on the 5th regarding the controversy following the enforcement of the Financial Consumer Protection Act (FCPA), "The evasive behavior of mechanically explaining and recording all matters due to the burden of future disputes is contrary to the purpose of the FCPA."
Chairman Eun held a meeting with CEOs of the financial investment industry at the Korea Financial Investment Association in Yeouido, Seoul, on the morning of the same day and said, "I once again express my regret for the inconvenience and confusion after the enforcement of the FCPA."
He emphasized, "To protect consumers, the information gap between financial companies and consumers must be minimized, and especially in the financial investment sector handling complex products, efforts to resolve information asymmetry are important," adding, "Choosing financial products hurriedly without sufficient explanation and understanding effectively nullifies consumer choice." He continued, "It is necessary to seek ways to streamline procedures while explaining key points in an easy-to-understand manner tailored to the consumer's perspective."
Since financial investment products are more complex in structure and carry higher investment loss risks compared to financial products such as deposits, loans, and insurance, greater consumer protection efforts are required from the financial investment industry.
The Financial Services Commission is preparing guidelines to prevent industry confusion following the enforcement of the FCPA, and the Korea Financial Investment Association also decided to create and distribute a one-page compliance checklist for sales staff when selling products on the same day.
The meeting was attended by Na Jae-cheol, Chairman of the Korea Financial Investment Association, and representatives from major top securities firms including Mirae Asset, NH, Korea Investment, Samsung, KB, Shinhan, Kiwoom, Hanwha, and DB.
Meanwhile, Chairman Eun, following complaints about long recording times at financial product sales sites after the enforcement of the FCPA, met with bank CEOs last week and met with the financial investment industry on this day to request cooperation for the smooth establishment of the FCPA. He also plans to meet consecutively with CEOs of insurance companies, credit finance companies, and savings banks on the 6th and 9th, and communicate with labor unions in the financial industry. Chairman Eun said, "I would like to take this opportunity to express my gratitude to the executives and employees working on the ground for the establishment of the FCPA."
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