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[Alpha Biz=(Chicago) Reporter Kim Jisun] Shinhan Bank was found to have sold private equity funds using missing or distorted product proposals.
The Financial Supervisory Service said in its inspection of Shinhan Bank on the 5th that it has uncovered a large number of cases of incomplete sales of financial investment products, including private equity funds, resulting in a three-month suspension and disciplinary action against nine former and incumbent executives and employees and one requirement for self-processing.
Subject to the three-month suspension are new work for private equity investment brokerage and new work for signing trust contracts to manage trust assets by purchasing private equity funds.
The Financial Supervisory Service detected a number of violations of the suitability principle as well as violations of Shinhan Bank's obligation to explain in the process of selling private equity funds.
When selling financial investment products such as private equity funds, important matters should not be explained falsely or distorted or omitted. However, it has been confirmed that Shinhan Bank A and B headquarters have omitted or distorted product proposals in the process of launching and selling six types of private equity funds.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
