Financial Supervisory Service Chief: "Ensuring Predictability in Securities Firms' Sanctions"

At the Securities Firms CEO Meeting on the 23rd, "Early Detection of Risk-Vulnerable Areas"

[Asia Economy Reporter Ji Yeon-jin] On the 23rd, Jeong Eun-bo, Governor of the Financial Supervisory Service (FSS), stated regarding the supervision of securities firms, "We will ensure the predictability and acceptability of sanctions through sufficient communication about the pointed issues."

Governor Jeong held a meeting with the CEOs of securities firms at the Kensington Hotel in Yeouido, Seoul, in the morning, and said, "If a securities company autonomously improves and takes measures on problems, we will respect the results."

Governor Jeong outlined the direction for supervision and inspection of securities companies as follows: ▲according to laws and principles ▲promoting harmony and balance between proactive and reactive supervision ▲strengthening preventive supervision to protect financial consumers. He emphasized, "To this end, we will strengthen on-site, close-contact continuous monitoring functions and focus our capabilities on detecting risk-vulnerable areas in advance."

He continued, "If incidents such as mis-selling occur again in a situation where trust in the capital market is low after the private equity fund incident, the decline in trust in the capital market will become irreversible. As individual investors have recently increased significantly, I urge securities companies to pay special attention to consumer protection through strengthening internal controls such as 'complete sales'."

Governor Jeong also said, "Along with institutional improvements in the underperforming retirement pension market, we will actively support the development of pension products that can achieve stable long-term returns, such as introducing default options for DC-type plans, establishing reserve management committees for DB-type plans, and preparing operation plans." He added, "To meet the diverse investment demands of the public, we will promote adjustments to risk values related to asset management in green finance such as carbon emission rights, listed REITs, and real estate finance."