Financial Supervisory Service considers consumer protection efforts when sanctioning Lime… Should we avoid severe punishment in Shinhan?

The Financial Supervisory Service decided to consider whether to take consumer protection measures when sanctions against financial companies and CEOs arising from the repurchase of Lime Fund. Accordingly, attention is being paid to whether the final disciplinary level of Woori Bank and Shinhan Bank, which took preliminary compensation measures to damaged investors along with efforts to prevent the recurrence of the private equity crisis, will be lower than the severe disciplinary measures notified in advance.

Financial Supervisory Service Director Yoon Seok-heon answers questions from lawmakers in a report on the affairs of the Political Affairs Committee held at the National Assembly on the 17th. [연합뉴스]

In a report from the Political Affairs Committee held at the National Assembly on the 17th, Yoon Seok-heon, head of the Financial Supervisory Service, responded to questions from lawmakers regarding the sanctions of Lime Fund sellers. “I replied.

Director Yoon said, “There are certain points that (these sanctions) affect individuals, so we need to look carefully,” he said. “Companies that are good at protecting consumers are working hard to reflect these contents.”

As Director Yoon decided to reflect aggressive consumer protection measures of financial companies in the final sanctions, it is also possible that the disciplinary levels of Woori Bank and Shinhan Bank will be reduced from the beginning at the FSS sanction review committee to be held on the 25th.

The Financial Supervisory Service is reported to have previously notified the suspension of duties to Woori Finance Chairman Son Tae-seung and a censure warning to Shinhan Bank President Jin Ok-dong. The level of sanctions on financial company executives is divided into five stages: △recommendation for dismissal △recommendation for job suspension, △cautionary warning △cautionary warning △caution. Above the censure warning is classified as severe disciplinary action.

Woori Bank and Shinhan Bank have recently actively taken measures to relieve damage to Lime Fund subscribers. In June of last year, Woori Bank decided to pay up to 51% of the principal amount to investors of Lime Asset Management’s Pluto and Tetis Fund, and the Financial Supervisory Service requested that investors of the Trade Finance Fund (Pluto TF-1) compensate 100% of the principal. They accepted the dispute settlement proposal and made full compensation. Shinhan Bank has also decided to pay 50% of its investment in advance for the credit insured (CI) fund, which has not been determined to lose any losses, for the first time among banknotes.

An official from a financial company said, “If the Financial Supervisory Service reflects efforts to protect consumers and prevent the recurrence of the private equity crisis, it is highly likely that Woori Bank and Shinhan Bank, which have been working for follow-up measures, will benefit.” As the scale is large, there is also a prospect that even if the sanction level is reduced, it is difficult to avoid severe punishment.”

Meanwhile, in a business report that day, Director Yoon announced that he would introduce a’financial company executive responsibility system’. This is a measure to create a responsible management culture for financial companies by clarifying the scope of responsibilities of financial company executives who are in charge of tasks with frequent consumer damage.