Input 2021.03.17 18:31 | Revision 2021.03.17 18:35
The Financial Services Commission and the Financial Supervisory Service distributed the second question-and-answer (FAQ) data before the enforcement of the Financial Supervisory Service Act on the 25th. In the case of advertising by utilizing the law, compliance matters are applied when advertising under the Law on Law,” he announced on the 17th.
Some exceptions were granted for advertisements by financial product sales agents and brokers, such as GA agents. Some planners are making a move to delete related posts, fearing that the financial product introduction postings they posted in the past would be judged as a violation of advertising regulations when applying the gold law.
In response, the financial authorities explained that advertisements posted after the enforcement of the law must be verified by direct sellers, but that advertisements in the past are not subject to the law. It is explained that it was in the early stages of implementation of the system, and the market confusion that could occur when retroactively applied was taken into account.
However, support for signing contracts with financial product sellers along with product recommendations and explanations, support for filling out and submitting financial product subscription documents, or providing advertisements tailored to a specific person, was viewed as’intermediation’. Even though he was not a financial product seller, the act of recommending a product after receiving a price from the consumer in response to advice in order to obtain a profit was judged as an’advisory service’.
If your business is classified as a brokerage business according to this type of business activity, you must apply for registration with the requirements starting in July. However, employees of telemarketing (telephone solicitation sales corporation) do not need to register separately. Loan recruiters who have completed an exclusive contract with an existing financial company do not need to register a new one even if they relocate.
In addition, elderly consumers 65 years of age or older can exercise their right to withdraw for up to 9 days after subscribing to’high-level financial products’ such as derivatives or private equity funds. This is because the period of consideration is guaranteed from the day after the subscription date to the 2nd day to confirm the subscription, and up to 7 days after the contract is signed. Whether the consumer is a general financial consumer who can exercise the right to withdraw from subscription is judged based on the’time of subscription’.
The act of recommending inappropriate products, such as providing a fund catalog because the consumer wants it, and receiving a nonconformity confirmation from the consumer, is prohibited as a violation of the’conformity principle’. The conformity principle is a principle that prevents sellers from recommending products that are inappropriate for consumers after confirming consumer information. Regarding this principle, when confirming the’understanding of financial products’ from consumers, the judgment must be made on the basis of objective questions. For example, do not write questions that depend on the subjective intention of consumers such as’Do you think you have sufficient knowledge?’
On the other hand, the gold law law, which in principle applies to all financial products, the six sales regulations, which were applied only to some financial products in the individual financial business laws such as the Capital Market Act, will come into effect on the 25th in principle. However, it was decided to apply a maximum of six months to the five regulations, such as mandating the establishment of internal control standards that require a period of preparation for the industry due to the establishment of own standards and system establishment, preparation of core instructions, and setting of investment product risk levels.