South Korea: Measures to strengthen investor protection
0 comments
The Financial Services Commission and the Financial Supervisory Service have unveiled measures to strengthen investor protection regarding high-risk financial investment products.
The measures come after recent derivatives-linked funds mis-selling cases in the country. They are aimed at enhancing consumer protection and maintaining stability in the financial system, without jeopardizing private equity funds’ critical function of supplying venture capital.
As part of the measures, banks will be banned from selling ‘highly complex’ private funds. The government will also enhance its supervision, guidance, and inspection of the sales of high-risk financial instruments by banks.
Photo Credit: Pixabay