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[Apha Biz=(Chicago) Reporter Paul Lee] In the wake of a series of recent capital market corruption cases, financial regulators have decided to strengthen supervision of securities firms.
The move is aimed at strengthening internal control to prevent the recurrence of personal irregularities in which analysts buy stocks in advance and write purchase reports and securities firms that excessively pay executive bonuses in violation of regulations.
The Financial Supervisory Service held a workshop on strengthening internal control with those in charge of internal audit and compliance monitoring of securities and futures companies at the Financial Supervisory Service in Yeouido, Seoul, on the 19th. About 200 people attended, including 60 securities firms, three futures companies, internal audits and compliance officers, and the Korea Financial Investment Association.
Regarding the pursuit of private interests, the FSS shared cases of profit-taking through false and processing contracts, the use of undisclosed job information and the exercise of unfair influence, which were revealed by securities firms' inspections. Earlier, an analyst at a securities firm released a report from 2013 to last year that included "buying opinions" of stocks he had bought in advance and sold them when stock prices went up. The Financial Supervisory Service has caught 520 million won in unfair profits over the years through this method.
In relation to this, the Financial Supervisory Service stressed the need to strengthen internal control over team-level work organizations composed of the same members for a long time. It called for efforts by securities firms to strengthen their internal control by strengthening education for executives and employees in charge of tasks that have many opportunities to acquire undisclosed information.
AlphaBIZ 폴 리(hoondork1977@alphabiz.co.kr)
