[Alpha Biz=(Chicago) Reporter Paul Lee] The FSS will conduct an intensive inspection of Hong Kong ELS and real estate PF risks this year

The Financial Supervisory Service has announced a major inspection of the Hong Kong H Index Share Price Linked Index (ELS) and real estate project financing (PF) risks this year.

The FSS plans to establish an organic inspection system by conducting a total of 622 regular and occasional inspections.

The Financial Supervisory Service said on the 21st that it will conduct a total of 622 inspections this year, including 24 regular inspections and 598 occasional inspections. Compared to last year, regular inspections decreased five times and occasional inspections decreased 35 times, respectively. The number of inspectors was 21,154, down from 23,399 the previous year, but higher than the average (20,490).

The FSS plans to conduct 24 regular inspections this year. Seven times for banks (including financial holding companies), seven times for insurance, eight times for small and medium-sized finance, and two times for financial investment. Frequent inspections are carried out 598 times. Financial investment 134 times, small and medium-sized finance 82 times, insurance 80 times, and banks 80 times.

There are three key keywords for this year's supervisory inspection: 'Fair Finance', 'Soundness' and 'Business Behavior'. Among them, fair finance means that it will root out management behaviors that shift risk responsibility while pursuing short-term earnings and financial crimes that violate people's livelihoods that deprive consumers of their share.

First of all, sales of financial products such as the Hong Kong H Index ELS, which will be worth trillions of won worth this year, will focus on illegal activities such as the adequacy of internal control and incomplete sales. It will also look into short-term performance-oriented investment decision-making for high-risk assets such as real estate PF and risk management in preparation for the possibility of increased losses.

 

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