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| A bank window in Seoul. © News1 Reporter Yoon-sung Koo |
“I tried to explain as much as possible to the fear that I could pay a fine of up to 100 million won after selling a wrong financial product, so it takes two to three times as long as before. We are anxious that it will be wrong, and it is difficult for customers to hear explanations for a long time. Rather, there are some people complaining to finish it quickly.” (A bank employee at Jongno branch)
On the first day when the Financial Consumer Protection Act (Money Soo Act) came into force on the 25th, both bankers and customers were confused at bank branches. Employees who were not familiar with the changed system were nervous about making a mistake, and customers expressed dissatisfaction when the waiting time was delayed due to the reinforced explanation obligation.
The most noticeable difference due to the enforcement of the prohibition law is that the product description time has been extended. First, it took 20 to 30 minutes to sign up for simple installment savings. Considering that it took less than 10 minutes before, it increased by 2-3 times.
In the case of installment savings, the risk is not large, so in the past, it was possible to sign up simply by checking and signing the part indicated by the employee on the transaction application, such as interest rate and period. However, from this day on, the subscription time increases because the customer must fill out the contents of the subscription invitation confirmation, bank transaction application, deposit-related product contract, etc., and read the contents one by one with the employee.
A bank clerk said, “I don’t know if it’s a product with a high investment risk, but I think it’s too much time to explain the attached documents or explanations by strengthening the obligation to explain simple savings in one batch.” .
Funds that used to take 20 to 30 minutes to sign up took up to an hour or more on this day. First, it analyzed investor propensity and explained that sales of products with higher risk than investment propensity were restricted. Then, while reading the product manual, I checked whether the customer understood it and went through the process of recording it.
In the process, there were customers who were rather confused by the lengthy explanation or asked for only the core content. Among the waiting customers, there were many customers who complained that they were’waiting too long’ or turned away without consulting with the staff.
An official from the bank said, “It would have been a long time since it was the first day of the law enforcement, but it will be difficult to change significantly in the future due to the strengthened explanation obligations,” he said.
The key is to expand the’Six Major Sales Regulations’ (the principle of conformity, the principle of adequacy, the duty to explain, the prohibition of unfair business practices, the prohibition of unfair solicitation, and the prohibition of false exaggerated advertising), which were applied only to some financial products. . Violation of the six sales principles can impose a fine of up to 100 million won, and only for violations of the four regulations excluding the conformity and adequacy principles, a’punitive penalty’ can be imposed up to 50% of the relevant income. This is why financial sector workers are bound to be nervous.
On the first day of the enforcement of the law, the delay in the preparation of guidelines (business guidelines) of the financial authorities as well as the business site caused a disruption in the establishment of the financial system’s computer system, leading to an uneasy start.
Financial authorities have stated that they will postpone the application of some regulations for up to six months in consideration of the need for preparation time in the financial sector.However, in the financial sector, it is feared that a’demonstration case’ will occur in the early stages of enforcement of the law. Suspending the body, etc. are living.
An official from the financial sector said, “It takes more than a month to change not only employee training, but also computer work, but leaving only a few days left for enforcement of the law enforcement and publishing supervisory regulations and guidance materials is typical of table-top administration.” “There is a lot of possession and there is not enough time to prepare, so for the time being, there will be confusion not only in the banks but also in the entire financial sector,” he said.