FSS "Strengthening Information Sharing on Incomplete Sales Risk Analysis"

[Asia Economy Reporter Song Hwajeong] The Financial Supervisory Service (FSS) announced on the 30th that it will strengthen information sharing, including incomplete sales risk analysis, to encourage financial companies to autonomously enhance consumer protection.

Until now, the FSS has mainly utilized post-supervisory tasks by receiving data from financial companies on the subscription rates of stability-oriented investors and elderly customers in products with principal loss risks such as funds, derivative-linked securities, and variable insurance, and conducting on-site inspections when there were risk concerns.

Going forward, the FSS plans to share analysis data in advance so that financial companies can review incomplete sales risks themselves and improve internal control systems if necessary. Initially, the analysis data will be shared semiannually, with plans to expand further based on operational performance.

If the withdrawal rate or elderly subscription rate is higher than the industry average or rapidly increases, this analysis information will be provided, and for incomplete sales complaints, data such as the number of occurrences, increase/decrease rates compared to the industry, and occurrence information by product and channel will be provided to the respective companies to enable them to check compliance with sales information and sales process procedures on their own.

Additionally, the FSS plans to offer incentives such as preferential evaluation items during financial consumer protection performance assessments when financial companies autonomously improve internal control systems to prevent incomplete sales.

Lee Bokhyun, Governor of the FSS, stated, "It is necessary to make efforts to prevent consumers from experiencing inconvenience due to incomplete sales of financial products amid the recent difficult economic situation," and added, "There is a need to expand information sharing and cooperation that financial companies can utilize for autonomous internal control improvements."