Lee Bok-hyun, Governor of the Financial Supervisory Service, said on the 28th regarding the loss incident of the Hong Kong H Index (Hang Seng China Enterprises Index·HSCEI) based equity-linked securities (ELS), "If a significant part of past mistakes is admitted and compensation measures are taken for stakeholders, it is natural to consider this as a factor for reducing sanctions or fines."
Lee Bok-hyun, Governor of the Financial Supervisory Service, is attending the research institute heads' meeting held on the 28th at the Kensington Hotel in Yeouido, Yeongdeungpo-gu, Seoul. Photo by Jo Yong-jun jun21@
Governor Lee made these remarks after attending a meeting of research institute heads held at a hotel in Yeouido, Seoul, in the morning, stating to reporters, "We will explain the responsibility-sharing plan to the entire nation by next weekend."
Regarding the responsibility-sharing plan, he said, "Since we have various experiences such as the past private equity fund incidents, we will consider what we have learned from them, but we will not be confined to those alone and will ensure that various stakeholders and factors can be taken into account." He added, "It is a premature conclusion to uniformly exclude cases where re-subscription or subscription through securities firms occurred."
He also stated, "Personally, I believe it is appropriate to reflect meaningful fines or sanctions in a way that increases the acceptability of dispute resolution plans and reduces conflicts among stakeholders," adding, "This way, it will not end as a one-time event, but rather, it will become a culture for financial institutions to sell financial investment products suitable for consumer protection through their channels in the future."
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