On Oct. 10, 2024, SK FIA published revised regulations, effective from Mar. 31, 2025.
Document dated Oct. 10, 2024, received from FIA Oct. 11, summarized on Oct. 15.
In Jan. 2025, SK FIA revised best practices for valuation of listed stocks, see #241555.
In Feb. 2025, SK FIA published revised Credit transaction prospectus, see #244948.
On Aug. 14, SK FIA proposed to revise rules on collateral evaluation.
SK FIA proposed to amend Regulations on the business and operations of financial investment companies (FICs) and Best practices for risk management of FICs.
To reflect revised method of calculating collateral price for credit transactions, in accordance with follow-up measures of SK FSC's short sale reform, #215738.
Amendments to Regulations
Revise pricing of collateral securities related to margin trading, along with exceptions.
The repayment period for margin trading is set at within 90 days, but the total repayment period, including any extensions, cannot exceed 12 months.
Exceptions allowed if repayment is difficult due to suspension, delisting, other issues.
Financial investment companies engaged in margin trading business are obligated to provide a dedicated account for margin trading when requested by customers.
Amendments to Best Practices
Currently, listed stocks, other securities provided as collateral or margin are evaluated based on the closing price of the day; now revised to exclude margin trading.
Effectiveness
Consultation closes on Sep. 3, 2024, for expected implementation on Mar. 31, 2025.
Oct. 2024 Revisions Finalized
On Oct. 10, 2024, SK FIA published revised regulations, effective from Mar. 31, 2025.
Document dated Oct. 10, 2024, received from FIA Oct. 11, summarized on Oct. 15.
In Jan. 2025, SK FIA revised best practices for valuation of listed stocks, see #241555.
In Feb. 2025, SK FIA published revised Credit transaction prospectus, see #244948.
Regulators
SK FIA
Entity Types
Fiduciary; Inv Co
Reference
RF 10/10/2024; CP 88, 89, 8/14/2024
Functions
Actuarial and Valuation; Compliance; Financial; Operations; Risk; Trading; Treasury
Countries
South Korea
Category
State
N/A
Products
Equity; Fund Mgt; Securities; Short Sale; Stock Lending
