KB금융과 하나증권. (사진=KB금융)

 

[Alpha Biz=(Chicago) Reporter Paul Lee] The Financial Supervisory Service will launch an inspection of Hana Securities and KB Securities over allegations of illegal Cross Trading.

According to the financial authorities and the financial investment industry on the 23rd, the FSS will conduct inspections on Hana Securities until the 26th of this month. KB Securities is scheduled to begin inspection next week.

KB Securities is suspected of engaging in illegal business activities (maturity inconsistent asset management) to boost returns in the process of selling wrap account products such as Money Market Lab (MMW) and operating assets. The Financial Supervisory Service is looking into allegations that it conducted "rounding off" operations by raising corporate customer funds, saying it will invest in three-month safe assets, investing in one- or three-year credit-specialized financial bonds, and paying funds from new customers to customers who are due or customers who requested mid-term termination.

"Mismatching management with assets longer than the contract period is not illegal," KB Securities said. "When adding a product, we explained the maturity mismatching operation strategy in advance, and the customer's manual states that assets with longer remaining maturity than the contract period can be included and operated."

KB Securities is also suspected of using the KB Securities trust account at Hana Securities to buy long-term bonds in its corporate customer accounts at book value before valuation losses.

 

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