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View of Daishin Securities headquarters building (photo = Daishin Securities). |
[Alpha Biz= Reporter Paul Lee] Institutional warnings and employee sanctions have been decided on Daishin Securities on charges of incomplete sales of private equity funds and other financial investment products.
According to the Financial Supervisory Service on the 16th, Daishin Securities was given institutional warnings and two employees were given three months of salary cuts and reprimands, respectively.
According to the FSS, Daishin Securities Department A neglected to review and confirm important matters such as product contents, investment structure and investment risk information during the fund sales process from August 2017 to February 2019. It is explained that the explanation was omitted or distorted by providing important investment proposals as explanatory materials for salespeople at branches to use for investment recommendation.
Specifically, it was revealed that the company used an investment proposal that did not contain related investment risk information, even though the product invested in loan bonds in the process of selling a total of KRW 10.7 billion worth of funds.
In addition, the company sold products that invest in bond-backed securities, allowing them to misunderstand that they are similar to Italian government bonds in terms of creditworthiness, such as debt performance unless there is a financial crisis such as Italy's national bankruptcy." The FSS believes that salespeople were required to omit or distort accurate explanations of important matters.
In addition, two branches of Daishin Securities violated the principle of suitability by not maintaining and managing data on analysis of investor propensity for general investors, while other centers imposed sanctions on violations of their obligation to ban unfair solicitation, such as providing conclusive judgment on uncertain matters.
AlphaBIZ Paul Lee(hoondork1977@alphabiz.co.kr)
