Financial Supervisory Service Consumer Protection Office
Woori Bank’s consumer protection efforts seem to be recognized… Shinhan Bank is unknown
It is noteworthy whether there will be the first case of reduction in consumer protection efforts at the sanction review committee of Woori Bank and Shinhan Bank, which sold Lime Asset Management Fund.
The Financial Supervisory Service (Financial Consumer Protection Office) plans to proactively present an opinion that sellers who have made sufficient efforts to deal with these situations should consider these circumstances when raising sanctions.
According to the financial sector on the 7th, the FSS will hold a sanction review committee on Woori Bank and Shinhan Bank on the 25th.
The Financial Supervisory Service has notified Woori Financial Group Chairman Son Tae-seung, who was the head of Woori Bank at the time of the Lyme crisis, of a considerable amount of job suspension, and a censure warning to Shinhan Bank President Jin Ok-dong.
The level of sanctions can be changed through deliberation on sanctions, and is finalized through a resolution by the Financial Services Commission.
At this time, how the Financial Supervisory Service’s Financial Consumer Protection Office evaluates banks’ efforts to recover from consumer damage will also have an impact on the sanctions level.
The Financial Supervisory Service revised its internal organizational regulations in February of last year, and in the event of sanctions at financial companies that caused serious consumer damage, the Financial Supervisory Service had to consult with the Minister of Financial Consumer Protection in advance.
In May of last year, in the enforcement regulations on financial institution inspections and sanctions,’whether there is an effort to recover damages such as sufficient compensation for the damages of financial traders’ was added as a reason for taking into account when the sanctions are lifted.
This is an institutional incentive for financial companies to actively pay for consumers.
Regarding the sanctions of Lime vendors, a FSS official said, “I will actively express opinions by comprehensively evaluating how much efforts have been made to recover after the incident, whether sufficient compensation has been made and efforts to recover damage have been made, and whether they have accepted the proposed adjustment of the agreement.”
In the financial sector, it is predicted that Woori Bank and others may be the first cases of sanctions being reduced in recognition of efforts to recover damage to consumers.
The Ministry of Finance and Consumer Protection previously expressed an opinion that’there are no disagreements’ within the severe disciplinary action of the prosecutor’s office on the three securities companies that sold lime funds.
On the other hand, there is a sense that Woori Bank is deserving of appreciation, such as the acceptance of the FSS’s dispute settlement proposal to return 100% of the principal to the Lime Trade Finance Fund (Pluto TF-1) investors.
Woori Bank agrees to a method of first reimbursing other Lime funds for which losses have not been confirmed based on estimated damages, and then paying for additional collections, and the process is in progress.
In June of last year, it was decided to prepay about 51% of the principal to the Lime Pluto FI D-1 Fund and Tetis Fund investors.
Taking this into account, it is observed that the Financial Consumer Protection Agency is highly likely to present a positive evaluation opinion on Woori Bank’s consumer protection efforts.
Shinhan Bank also decided to pay 50% of its principal in advance to investors in Lime Credit Insurance (CI) funds in June of last year.
First, half of the subscription amount was given to the victims, and liquidity was provided by paying after the compensation ratio was determined according to the decision of the FSS Dispute Mediation Committee.
However, it is said that it is difficult for the Financial Supervisory Service to evaluate that consumers have made sufficient efforts with the advance payment itself.
The dispute settlement proposal to return the entire principal amount of the trade finance fund came out against four companies: Woori Bank, Hana Bank, Mirae Asset Daewoo, and Shinhan Financial Investment, so Shinhan Bank had nothing to do except to accept it.
The Ministry of Finance and Consumer Protection is expected to evaluate each bank’s consumer protection efforts by comprehensively considering these circumstances.
Even if the Financial Consumer Protection Agency appreciates these banks’ consumer protection efforts, this does not necessarily lead to a reduction in sanctions.
An official from the Financial Supervisory Service said, “If the department in charge presents an opinion on consumer protection efforts, the sanctions judges will reflect this and decide whether to reduce it.”
/yunhap news