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[Apha Biz=(Chicago) Reporter Paul Lee] As accidents such as embezzlement by financial companies continue, it is expected that financial authorities will speed up the improvement of the system that can hold CEOs accountable.
According to the financial sector on the 13th, the Financial Services Commission plans to push for a revision of the Act on Corporate Governance of Financial Companies, which includes strengthening internal control, as a legislative bill. Legislation of members of the National Assembly is usually faster than that of government legislation and can be implemented earlier than that. This is due to the financial authorities' recent decision to speed up legislation in the wake of a series of major irregularities in the banking sector.
Many pointed out that the current financial company governance law only stipulates the obligation to prepare internal control standards and that it is meaningless because no specific responsibilities are set for each executive.
However, the amendment made it possible to create a 'responsibility structure' that specifically designated the responsibilities of each executive and to specify the responsibilities of the CEO. CEOs and executives will be subject to reprimand due to such lack of internal control management.
In addition, the government will strengthen the verification process for what financial companies report to regulators.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
