Photo courtesy of Yonhap News

 

[Alpha Biz= Paul Lee] Daishin Securities has imposed a blanket ban on stock trading by all employees in its research center, in a move widely seen as a significant tightening of internal controls.

According to the financial investment industry on the 26th, the brokerage recently implemented an internal policy prohibiting research staff from trading listed stocks under their personal names. The decision followed a prosecutors’ raid related to allegations that a former employee was involved in stock price manipulation.

Previously, trading restrictions for research personnel were limited to stocks they directly covered or analyzed, focusing on managing conflicts of interest and the misuse of non-public information. The new measure goes further by blocking virtually all stock trading by research staff, regardless of sector or coverage responsibility.

Market observers view the move as a preemptive effort to prevent reputational damage during an ongoing investigation and to reassure investors by strengthening controls over units with high access to market-sensitive information.

Daishin Securities has recently expanded internal audits and overhauled employee trading management standards, signaling a broader push to reinforce compliance and governance. The research center ban is seen as a symbolic step underscoring that shift.

 

 

 

[ⓒ AlphaBIZ. 무단전재-재배포 금지]