Hana Financial institution, a serious business financial institution in Korea, has been fined practically 18 billion gained ($12.3 million) for promoting personal funds to traders with out correctly explaining the related dangers, trade sources mentioned Monday.
The Monetary Supervisory Service (FSS) imposed a high-quality of 17.94 billion gained on the financial institution for mis-selling 9 sorts of personal funds that invested in abroad mortgage bonds and related property, together with these in Italy and Britain, to a complete of 963 traders between 2017 and 2019.
Whereas promoting the merchandise, which had a mixed gross sales quantity of 377.9 billion gained, the financial institution had allegedly distorted or omitted key info, violating its responsibility to elucidate funding dangers, based on the sources.
Hana Financial institution had allegedly hid the chance of funding losses and misrepresented the product construction, main traders to imagine they may safely get better each principal and curiosity, as if the merchandise have been assured.
Along with the company high-quality, the FSS additionally imposed disciplinary actions, together with reprimands and pay cuts, towards about 10 financial institution officers, the sources added.
