Briefing to the National Policy Committee
On February 5, Financial Supervisory Service (FSS) Governor Lee Chanjin stated that, in relation to the imposition of fines over the misselling of Hong Kong H-index equity-linked securities (ELS), he would "make sure that productive finance is not disrupted."
Governor Lee made this remark during a briefing to the National Assembly’s National Policy Committee, in response to a related question from Assemblyman Shin Jangshik of the Cho Kuk Innovation Party. He said, "I understand that this awareness of the issue will continue to be maintained and reflected not only in the future proceedings of the Sanctions Review Committee, but also in the subsequent process at the Financial Services Commission."
Previously, the FSS had given prior notice to five banks of fines totaling 2 trillion won. Although the Sanctions Review Committee has convened twice so far, it has not reached a conclusion. Once the FSS sanctions review is completed, the Financial Services Commission will decide the final level of sanctions.
In his questioning, Assemblyman Shin pointed out that the court had ruled it was difficult to see the financial institutions as having violated their duty to explain, thereby reaching a conclusion different from the FSS’s criteria.
Regarding this, Governor Lee explained, "That ruling applied the former Capital Markets Act, whereas currently seven to eight new provisions related to the duty to explain under the Financial Consumer Protection Act have been introduced, and the members of the Sanctions Review Committee are examining them in depth." He added, "If the session is continued, I believe the matter will be settled at the next meeting," and, "We are striving to minimize the areas of concern for the financial industry."
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