The Financial Supervisory Service made a severe disciplinary decision to NH Investment & Securities and Hana Bank in relation to the Optimus crisis.
The Financial Supervisory Service held a sanction review committee on the 25th and decided on sanctions against NH Investment & Securities and Hana Bank’s corporations and employees. Earlier, the Financial Supervisory Service held sanctions two times on the 19th of last month and the 4th of this month, but could not conclude.
At the meeting, the level of sanctions was decided based on the voices of securities companies that came out of the last two sanctions trials and the opinions of the Financial Investment Inspection Bureau of the Financial Supervisory Service.
The FSS sanctions trial decided to first suggest to the Financial Services Commission to issue a censure warning against NH Investment & Securities President Chung Young-chae. Sanctions for executives at financial companies are heavy in the order of caution → cautious warning → reprimand → suspension of work → recommendation for dismissal. If the censure warning is confirmed by the Financial Services Commission as it is, he will not be able to re-employ a financial company for the next three years as well as to reap the office of president.
The Financial Supervisory Service judged that NH Investment & Securities was unable to properly filter out insolvent funds such as Optimus due to inadequate internal control systems. As for President Jung, he considered that severe discipline was inevitable as he failed to establish effective internal control standards as the CEO. However, the FSS sanctions trial lowered the level of sanctions by President Jeong, who was notified of the three-month suspension of work, by a censure warning.
For NH Investment & Securities corporations, it was decided to propose to the Financial Services Commission to suspend some operations and to impose fines by applying violations of the obligation to prohibit unreasonable solicitation under the Capital Markets Act and the obligation to establish internal control standards.
It was concluded that Hana Bank, the trustee of the Optimus Fund, was also subject to partial suspension of business as a serious disciplinary. Regarding the relevant employees, the FSS will take action as soon as the resolution of the Financial Services Commission is confirmed.
Reporter Oh Hyeong-joo [email protected]
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