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Photo = Yonhap news |
[Alpha Biz= Paul Lee] Among the 9 securities firms involved in the 'bond rolling' scandal related to bond-type wrap accounts and certain money trust accounts, one has been given a severe penalty, and eight others received lighter sanctions.
According to financial authorities on Tuesday, the Financial Services Commission (FSC) subcommittee held a disciplinary review on the nine securities firms the previous day.
Kyobo Securities received a one-month partial suspension of operations, while KB Securities, Hana Securities, Mirae Asset Securities, Eugene Investment & Securities, Korea Investment & Securities, Yuanta Securities, and NH Investment & Securities were issued institutional warnings. SK Securities received a lighter penalty, an institutional caution.
The subcommittee's decisions will be finalized at the regular FSC meeting scheduled for the 19th.
Previously, the Financial Supervisory Service (FSS) conducted an intensive inspection on securities firms handling bond-type wrap and trust business and found that they had used proprietary funds to benefit customers whose bonds matured or shifted losses to other customers through self-dealing transactions.
As a result, some firms were given partial suspensions, and one was issued an institutional warning, but the Securities & Futures Commission (SFC) reduced the severity of the penalties. However, Kyobo Securities was penalized with a suspension after it was found to have used illegal self-dealing transactions, even mobilizing funds it had set up internally.
Additionally, these securities firms are expected to face fines ranging from 2 billion to 4 billion won.
AlphaBIZ Kim Jisun(stockmk2020@alphabiz.co.kr)
