On Nov. 26, SK FIA proposed internal control standards for funds.
SK FIA published proposed Internal control standards for fund-affiliated companies.
Follows SK FSC Jan. 2024 issued plan for public fund competitiveness, see #196892.
Proposed Revisions
Establish internal control standards reflecting the characteristics of each industry by fund-affiliated companies; strengthen constant monitoring of fund-affiliated firms.
Establish internal control and conflict of interest management systems related to business performance, in addition to measures to prevent unsound sales practices.
Stipulate procedures for appointing compliance officers; prohibit the use of information acquired during work; require reporting on investment by executives/employees in financial investment products, disclosure of fund and bond price evaluation criteria.
Require establishment of system preventing conflicts of interest with affiliates/major shareholders like contracts favorable to affiliates, use of undisclosed information.
Establish a new prohibition on bond/fund evaluation companies' sales, to prevent any unsound sales practices that may arise in connection with the conduct of evaluations.
Consultation Period
Comments to be submitted by Dec. 16 for planned effectiveness from Dec. 18, 2024.
