Lime Fund Sales Bank CEO Severe Discipline… Financial Supervisory Service Internal Line Yoon Seok-heon Responsibility

There is a growing opinion that not only banknotes, but even inside the FSS, FSS Chief Yoon Seok-heon cannot avoid responsibility for the insolvency of private equity funds.

According to the financial sector on the 4th, the Financial Supervisory Service’s Sanctions Deliberation Committee (sanctions) against banks selling Lime Asset Management Fund was announced. 3 days prior notice. A’cautionary warning’ was notified to Cho Yong-byeong, chairman of Shinhan Finance.

The level of sanctions on financial company executives is divided into five stages: △recommendation for dismissal △recommended job △consulting warning △cautionary warning △caution. Responsibility warnings, job suspension, and dismissal recommendations are severe disciplinary actions, and re-employment in the financial sector is prohibited for the next 3 to 5 years after the incumbent term ends.

The Financial Supervisory Service also sent a notice last month to IBK Industrial Bank, which sold Lime Fund and Discovery Fund, containing the sanction requirements and grounds. In the notice, a’cause warning’ to former IBK president Kim Do-jin was stated.

Woori Finance Chairman Son Tae-seung is expected to file an administrative lawsuit again when the suspension of duties is finally confirmed, objecting to the disciplinary action.

Chairman Son filed an administrative lawsuit with an application for temporary injunction with severe disciplinary suspension after the Financial Supervisory Service issued a censure warning for incomplete sales of the derivative-linked fund (DLF) in January last year. The Seoul Administrative Court accepted the application for provisional injunction and succeeded in serving as president for three years in office last March.

It is highly likely that the head of the lawsuit, Jin Ok-dong, will also proceed with the lawsuit by referring to the case of Chairman Son Tae-seung. Discipline is likely not to end with the bank manager and executives.

Director Yoon also urged the FSS executive meeting to speed up sanctions related to private equity such as the Lime crisis.

The banking sector is dissatisfied with the conclusion that the financial authorities were not responsible for the private equity situation and that it was a serious disciplinary action by the bank manager.

The nationwide financial industry union, to which the banking trade union belongs, issued a statement on the 3rd and turned the arrow of criticism saying that the FSS and Director Yoon Seok-heon should take responsibility for the insolvency of private equity funds.

The statement stated, “Although private equity sellers cannot be free from responsibility, financial policy and supervisory authorities are also very responsible.” Still, the supervisory authorities are pushing financial workers who are forced to sell their personnel rights as hostages on the front line with only incomplete sales.” Insisted.

“The bank’s workers who sell products that are difficult for investors to understand intuitively are driven into immoral people who are only pursuing performance, and they are responding with severe disciplinary action.” “The Financial Services Commission and the Financial Supervisory Service are not a one-time disciplinary, but a private equity fund regulatory plan and effective He criticized him, criticizing him to come up with measures to improve financial policies, such as disciplinary measures, and to be beaten by those who fail in policy and supervision.”