<Anchor> The
Financial Supervisory Service imposed severe disciplinary action against the three securities companies that sold Lime Fund and the management of the company.
When selling the fund, we judged that we were liable for not setting up a good standard of internal control.
Reporter Park Chan-geun reports.
<Reporter> The
Financial Supervisory Service's Sanctions Deliberation Committee for Lime-selling securities companies, which has been held three times since last month, ended at 11 pm yesterday (10th).
The Sanctions Deliberation Committee determined that the'some business suspension' measures against Shinhan Investment and KB Securities were reasonable.
When the action is finalized, the two securities companies should stop selling private equity funds for six months.
Daishin Securities' banpo branch, which has been selling lime funds, should be closed at all.
The Sanctions Deliberation Committee also concluded that, based on the fact that securities firms'did not establish effective internal control standards' when selling Lime Funds, they decided to impose severe punishment on top management for suspension of duties at the time of sale.
The level of sanctions against financial company executives is divided into five stages. When the second most powerful disciplinary action suspension is confirmed, employment at financial companies will be restricted for the next four years.
Financial companies are known to have argued that it is excessive to impose severe disciplinary action on management for lack of internal control in three trials of sanctions.
The disciplinary proposal under the FSS Sanctions Deliberation Committee is finalized after a resolution by the Securities and Futures Committee and the Financial Services Commission.
The Financial Supervisory Service has completed sanctions on Lime Asset Management and brokerage firms, and is facing sanctions on Lime banks such as Shinhan Bank and Woori Bank.