On Jul. 26, SK FIA proposed revisions to strengthen explanation duty.
SK FIA proposed revisions to the Standard investment recommendation guidelines, to enhance information provision and strengthen the duty to explain investment risks.
Given the scale of domestic bond investment by individual investors rapidly increased.
Proposed Revisions
Information including private bond valuation rates as well as transactions costs compared to private bond valuation prices should be provided to individual investors.
Namely, through explanatory materials as well as online platforms of securities houses.
Information regarding the possibility of loss due to interest rate fluctuations and possible difficulties in selling bonds early should be given to individual investors.
Where a securities house sold a bond in the past but it is currently excluded from the list of tradable items, it should notify bond investors of the information on the bond concerned and the reason for not recommending investment in the bond concerned.
Consultation Period
Comments to be submitted by Aug. 11 for planned effectiveness from Oct. 22, 2024.
Aug. 2024 Revisions Finalized
On Aug. 22, 2024, SK FIA issued the revised guidelines, effective from Oct. 22, 2024.
