Korea Business News Agency - NSP NEWS AGENCY.

(Seoul=NSP NEWS AGENCY) = The Financial Supervisory Service(FSS) has issued an institutional warning to Daishin Securities and a three-month suspension and a reprimand to two of its employees for incomplete sales of financial investment products, including private equity funds.

According to the Financial Supervisory Service on 17 July, Department A of Daishin Securities neglected to review and confirm important matters such as the contents of financial investment products, investment structure and investment risk information during the fund sales process from 21 August 2017 to 20 February 2019.

Specifically, in the process of selling a fund worth about KRW 10.7 billion, although the fund is a product that invests in loan receivables of small and medium-sized businesses, investment risk information such as the risk of loan investment through delinquency rate and default rate and the product’s profit structure were not recorded.

In addition, in the process of selling funds worth KRW 11.3 billion, it used conclusive information to mislead people into thinking that principal and interest could be recovered, and in the process of selling funds worth KRW 2.5 billion, it omitted any explanation of investment risks.

In addition, two branches of Daishin Securities did not maintain or manage data related to investment propensity analysis for general investors, and one center provided conclusive judgments on uncertain matters and informed them of information that could be misleading.

By Soon-ki Lee(s8789@nspna.com) and Soo-in Kang(sink606@nspna.com)

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