Expansion from 3 to 5 people
[Asia Economy Reporter Lee Seon-ae] The Financial Services Commission announced on the 18th that it has decided to increase the proportion of private members in the Capital Market Investigation Deliberation Committee (Jajoshim), an advisory body of the Securities and Futures Commission, to a majority in order to enhance fairness and promptness in handling unfair trade cases.
At the regular meeting held on the same day, the Financial Services Commission approved the amendment to the Capital Market Investigation Work Regulations based on this content. According to the amendment, the number of ex officio members of Jajoshim will decrease from 5 to 4, while the number of private members will increase from 3 to 5.
The amended regulations also stipulate that when the economic substance of derivative-linked securities is the same as that of collective investment securities (funds), the criteria for calculating fines for violations of the securities registration statement submission obligation will be applied equally to collective investment securities.
The amendment also includes provisions allowing, in cases of disclosure violations related to securities issuance where the underwriter played a leading role, the imposition of fines at a higher level than that imposed on the issuer as an exception.
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