The Monetary Supervisory Service (FSS) is pursuing measures to pre-emptively droop gross sales of funds, insurance coverage merchandise, and different monetary merchandise deemed more likely to trigger vital losses to customers. The system can be modified to fully void contracts themselves if merchandise already bought are anticipated to trigger large-scale harm to customers. Moreover, a client safety oversight division can be newly established immediately underneath the FSS governor, and a particular judicial police introduction job pressure can be set as much as eradicate livelihood monetary crimes resembling voice phishing and unlawful personal financing.
The FSS introduced the Monetary Shopper Safety Enchancment Roadmap with these contents on Dec. 22.
The FSS plans to strengthen monetary client safety step-by-step all through the whole lifecycle of monetary merchandise, from design and manufacturing phases to gross sales and post-management. It plans to impose gross sales restriction measures prematurely on monetary merchandise anticipated to trigger large-scale client harm. Notably for merchandise already bought, it’ll think about retroactive software to essentially void contracts when crucial. Lee Se-hoon, senior deputy governor of the FSS, defined, “Shopper harm can happen even for merchandise already bought,” including, “In such instances, basic contract voidance is critical, so we is not going to exclude this risk both.”
The FSS determined to strengthen monetary client safety measures from the product design and manufacturing phases. When creating high-risk merchandise, exterior professional deliberation can be required, and it will likely be obligatory to organize measures to forestall dangers which will come up from third events resembling medical establishments. Product screening can even be strengthened. For instance, when insurance coverage firms introduce new protection for brand new medical applied sciences, they need to report this prematurely and embody insurance coverage subscription limits by protection in fundamental paperwork.
Measures to alleviate customers’ monetary prices can even be pursued. Beginning as early as early subsequent yr, measures can be pursued to decrease rates of interest by not reflecting depositor insurance coverage premiums in financial savings banks’ lending charges. Institutional enchancment measures can even be ready for payment-type credit score with recourse to promoting firms, resembling accounts receivable-backed loans and vendor loans. Monetary customers’ transaction comfort can even be enhanced. The system can be improved to permit dementia sufferers to conduct monetary transactions by way of members of the family. Notification and various issuance procedures can even be modified to extend client selection when playing cards are discontinued. The institution of particular clauses to rationalize auto insurance coverage own-vehicle harm compensation requirements and measures to offer mortgage rates of interest when small enterprise house owners full training can even be pursued.
The FSS introduced an organizational restructuring plan on the identical day that features establishing a monetary client safety oversight group (headed by deputy governor) immediately underneath the governor. The attribute characteristic is combining supervisory oversight features with the buyer safety division that was beforehand underneath the Monetary Shopper Safety Bureau. The FSS created the Shopper Safety Supervisory Normal Bureau, Shopper Injury Prevention Bureau, and Supervisory Innovation Bureau along with the Supervisory Normal Bureau, which oversees supervisory and examination duties, underneath the buyer safety oversight division. The insurance coverage division that was underneath the senior deputy governor was positioned underneath the deputy governor for livelihood and insurance coverage (director of the Monetary Shopper Safety Bureau). This measure considers that the insurance coverage trade has probably the most disputes and complaints amongst all sectors. One other attribute of this restructuring plan is having department-specific product and system departments deal with dispute mediation features. A particular judicial police introduction job pressure for livelihood monetary crimes can be created to pursue establishing a separate investigation group following the capital market particular judicial police. The livelihood particular judicial police is anticipated to be granted autonomous investigation authority upon introduction.
Concerning the second-phase laws for digital forex, a Digital Asset Fundamental Act Introduction Preparatory Group (tentative title) can be newly established, and two further market surveillance groups can be added to strengthen capital market unfair buying and selling monitoring features.
Each inside and outdoors the FSS, there are observations that personnel appointments for deputy governors and deputy governor-level positions can be confirmed earlier than Dec. 25. Trade watchers say Senior Deputy Governor Lee is very more likely to stay in workplace.
