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▲ Screenshot of Lime Asset Management home page
The Financial Oversight Service issued a censure warning to the former and current CEOs of a securities company that sold the private equity fund Lime Asset Management and issued severe disciplinary action at the level of suspension. When selling the Lime Fund, an accident occurred because internal control standards did not work, and the intention is for the CEO of the securities company to take responsibility.
The Financial Oversight Service decided the level of sanctions against former and current CEOs of securities companies that sold private equity funds in the third sanctions review committee (sanctions review), which continued from 2 p.m. until late hours. of the night of the 10th.
The targets of the ‘suspension of work’ are Jae-cheol Na, former CEO of Daishin Securities (currently Chairman of the Financial Investments Association), Hyung-jin Kim, former CEO of Shinhan Financial Investment, and Kyung-eun Yoon, former CEO of KB Securities.
KB Securities CEO Park Jung-lim received a “consultant warning.” The rest of the sanctions, Kim Byeong-cheol, former CEO of Shinhan Financial Investment and Kim Seong-hyun, CEO of KB Securities, received a “cautionary warning.”
Sanctions against executives of financial companies are divided into five stages: recommendation for dismissal, suspension of work, reprimand for censure, cautionary reprimand and reprimand.
Some are cautiously raising the possibility of administrative litigation, as if disciplinary action against the CEO is upheld, employment in the finance sector could be restricted for the next 3-5 years. Securities companies are reported to have adhered to the position that it is excessive to impose severe punishment even on the CEO asking responsibility for the insolvency of the internal control system.
In the case of institutional sanctions, Shinhan Investment and KB Securities decided to propose a partial suspension of the business and the imposition of a fine on the Financial Services Commission. It is proposed to close the banpo WM center of Daishin Securities, which sold Lime Fund intensively, and impose a fine.
Institutional sanctions are divided into five types: from revocation of authorization to commercial suspension, corrective / suspension orders, institutional warnings and institutionality.
The Financial Supervision Service said: “Considering the fact that the issue of deliberation is an important issue that caused large-scale damage to investors and social controversy, etc., we have listened carefully to the explanations of the statements of officials of the securities company and the inspection office. ” He said, “We went through deep deliberation and decided.”
The Sanctions Deliberation Committee is the advisory body of the Governor of the Financial Supervision Service and the results of the review have no legal effect. Details of sanctions are finalized through approval by the FSS Commissioner, deliberation by the Securities and Futures Commission, and resolution by the Financial Services Commission.
