Discussing sanctions on sales of insolvent lime discovery funds in 2017-2019
(Seoul = Yonhap News) Reporter Kang Min-ji =’Iverage Bank Discovery Fund Fraud Damage Countermeasure Committee’ is performing a’funeral performance calling for mediation of the FSS’s head of fraudulent sales of the Discovery Fund’ in front of the Financial Supervisory Service in Yeouido, Yeongdeungpo-gu, Seoul. 2021.1.28 [email protected]
(Seoul = Yonhap News) Reporter Kim Yeon-sook = IBK Industrial Bank, which sold Lime Fund and Discovery Fund, which caused massive damage[024110]The decision on the level of sanctions against the government has been postponed to the 5th of next month.
The Financial Supervisory Service held a non-face-to-face sanctions review committee (sanctions review) on the 28th, and proposed and deliberated on the action plan as a result of inspections on Discovery Asset Management and IBK, but decided to resume the meeting on the 5th of next month.
The sanctions hearing, held at 2 pm on the day, continued until 8 pm, starting with Discovery Asset Management, a discovery fund manager.
The Financial Supervisory Service explained, “We proceeded with the deliberation while sufficiently listening to the statements and explanations of the company’s officials including legal persons and the (FSS) inspection bureau.”
In 2017-2019, IBK sold the Discovery US Fintech Global Bond Fund and the Discovery US Real Estate Senior Bond Fund worth KRW 361.2 billion and KRW 318 billion, respectively. However, the redemption of 69.5 billion won and 21.9 billion won, respectively, is delayed as US managers are unable to recover bonds invested in fund funds.
Lime Fund, which caused a large-scale redemption suspension, also sold 29.4 billion won.
The FSS informed of the disciplinary proposal prior to the sanctions review. It is known that the disciplinary plan included severe disciplinary action for dismissal (recommendation of dismissal, suspension of work, warning of censure), along with the disposition of fines and warnings against censure against Chief Kim Do-jin at the time the fund was sold.
This trial of sanctions is drawing attention as the FSS is the first to sanction banknotes related to the insolvency of private equity funds. The Financial Supervisory Service will determine the level of sanctions against IBK and its management, and will proceed with sanctions review for Woori, Shinhan, Industrial and Busan Banks involved in the private equity crisis within February to March.
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2021/01/28 21:01 sent