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Daishin KB Securities … Opening the third sanctions trial, appears to be deliberating further
On the 5th, the Financial Supervision Service held a second commission to review penalties for the sale of securities companies in relation to the ‘Lime Incident’.
As in the first session, this day’s deliberation is expected to continue late into the night, so the conclusion is expected to come out next week.
The Financial Supervision Service began a sanctions trial at 2 pm this day.
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.
On that day, the CEO of KB Securities, Park Jung-lim, and the former CEO of KB Securities, Yoon Kyung-eun, also attended.
Na Jae-cheol, president of the Financial Investments Association (former CEO of Daishin Securities), did not attend as in the first session.
It is known that President Na did not attend the sanctions hearing as it was deemed inappropriate to address the last days of Daishin Securities as president of the Financial Investments Association.
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 sanctions, fierce battles between the Financial Supervision Service and securities companies continue over whether the level of sanctions by management is 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 current CEO among past and current CEOs involved in this situation, and he is expected to make a more active call because he is limited by the challenge of re-occupying his position at the future.
If the sanction level cannot be confirmed on this day as well, it will lead to the third sanction trial next week.
In this case, the FSS inspection office and the securities company are expected to discuss the two standards based on statements and data from both parties.
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.
On the other hand, when the judgment of sanctions on securities companies is clarified, the process of sanctions against selling banks is in full swing.
In this regard, the Financial Supervision Commission, Yoon Seok-heon, said: “Banks will need a little more time to follow the securities company,” he said. “If possible, we should start in December.”
/ yunhap news
