South Korea's FSS found major banks and brokerages misrepresented China-linked structured products, causing potential losses of 5.8 trillion won.
South Korea's Financial Supervisory Service (FSS) revealed that major banks and brokerages misrepresented risky China-linked structured products to retail investors, leading to potential losses of 5.8 trillion won ($4.4 billion). The FSS discovered poor compliance and systematic failures in the sale of complex financial products linked to the Hang Seng China Enterprises Index. The financial regulator will take further action, including imposing fines, based on the extent of compensation provided to customers and efforts made to regain their confidence.
March 11, 2024
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