Sanctions Review on Banks over Hong Kong ELS Finalized
The Financial Supervisory Service has reduced the fines on banks related to the controversy over the misselling of equity-linked securities (ELS) tied to the Hong Kong H-Share Index (Hang Seng China Enterprises Index, HSCEI) from the initially planned approximately 2 trillion won to around 1.5 trillion won. Institutional sanctions were also eased by lowering them one level from suspension of business to an institutional warning.
According to the financial authorities on February 12, the Financial Supervisory Service held a sanctions review committee on Hong Kong ELS the same day for KB Kookmin Bank, Shinhan Bank, Hana Bank, NH Nonghyup Bank, and Standard Chartered Bank Korea, among others, and finalized these sanctions.
At the prior notice stage, the Financial Supervisory Service had indicated that it would impose a suspension of business on the five banks. However, at the final sanctions review, it eased the level of sanctions by adjusting this to an institutional warning.
The fine imposed on the banking sector has also reportedly been reduced to around 1.5 trillion won. Initially, a fine of about 2 trillion won had been preliminarily notified.
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