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Fierce battles over severe disciplinary action such as ‘CEO job suspension’
On the 5th, the Financial Supervision Service held a second sanction review committee for the securities companies that sold the Lime Asset Management Fund, but this time the level of sanctions could not be determined.
The FSS decided to hold a third sanctions trial on the 10th to make the final decision.
The Financial Supervision Service reported that the sanctions trial, which began at 2 pm this day, ended at 11 pm.
Daeshin Securities and KB Securities discussed in order.
The discussion on Shinhan Financial Investment, another sanctions issue, took place on the 29th of last month in the presence of former Shinhan Financial Investment CEOs Kim Hyung-jin and Kim Byung-cheol.
The Financial Supervision Service explained: “We have fully listened to the statements and explanations of Daishin Securities and the many related parties and the inspection office (FSS) of KB Securities, who did not complete the disclosure process at the last meeting.”
On that day, the CEO of KB Securities, Park Jung-lim, and the former CEO of KB Securities, Yoon Kyung-eun, also attended.
Previously, the Financial Oversight Service notified representatives of these securities companies who worked during the Lyme crisis of serious disciplinary measures such as suspension from work.
Brokerage firms were also notified of severe disciplinary measures such as institutional warnings and business suspension.
In reviewing the sanctions, fierce battles between the Financial Supervision Service and the securities company continued over whether the level of sanctions by management was appropriate.
The Financial Supervision Service has a logic that it can impose sanctions on the administration based on the laws and executive decrees on the governance structure of financial companies that “we must create effective internal control standards.”
On the other hand, brokerage firms protest the lack of grounds to sanction the CEO for lack of internal control in a situation in which the reform of the Governance Law, which allowed sanctioning the CEO in case of failure in internal control , was not approved by the National Assembly.
This review of sanctions is attracting more attention as the CEO will not be able to work in the financial sector for 3 to 5 years if severe disciplinary action is confirmed as notified by FSS.
KB Securities CEO Park Jung-lim is the only incumbent CEO among the CEOs involved in this incident, and he needs a more active call because he is limited by the challenge of a new appointment in the future.
Next week’s third sanctions review is expected to focus on discussions of statement and data-based headline standards from both sides of the FSS and securities companies.
However, the sentence of the sanctions trial is not the final conclusion.
As it must pass through resolution of the Securities and Futures Commission and the Financial Services Commission, it is not expected to be confirmed until the end of the year.
In connection with the DLF crisis, Son Tae-seung, Chairman of Woori Financial Group and Chairman of Woori Bank, and Ham Young-ju, Vice Chairman of Hana Financial Group (Chairman of Hana Financial Group at the time of the DLF crisis) they were subjected to severe disciplinary measures after three sanctions trials. .
They objected to the sanctions and filed an administrative lawsuit for annulment of disciplinary action and provisional disposition of suspension.
When the securities courts’ sanctions courts are cleared, the sanction proceedings against the selling banks begin in earnest.
Financial Supervision Commissioner Yoon Seok-heon said, “The bank will take a little longer,” he said. “If possible, it should start in December.”
/ yunhap news
