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Photo courtesy of KB Securities |
[Alpha Biz= Kim Jisun] South Korea’s Financial Supervisory Service (FSS) has imposed administrative fines totaling approximately KRW 3 billion on five securities firms for the mis-selling of equity-linked securities (ELS) linked to the Hong Kong H-Index.
According to regulatory sanction disclosures released on February 1, the FSS imposed a fine of KRW 1.68 billion on KB Securities last month, the largest penalty among the sanctioned firms. The regulator cited violations including failure to comply with mandatory call-recording requirements and insufficient disclosure of investment risks during the investor cooling-off period in the sale of H-Index-linked ELS products.
The FSS also fined NH Investment & Securities KRW 980 million for similar violations. Additional penalties were imposed on Mirae Asset Securities (KRW 140 million), Korea Investment & Securities (KRW 110 million), and Samsung Securities (KRW 100 million) for breaches of call-recording obligations and other regulatory requirements identified during the ELS sales process.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
