South Korea's Financial Supervisory Service has imposed about 3 billion won in fines on five brokerages for improper sales of equity-linked securities (ELS) products linked to the Hong Kong H-index.
A sanctions disclosure by the watchdog on Feb. 2 shows it imposed a 1.68 billion won fine on KB Securities last month for reasons including violating recording obligations while selling H-index ELS and failing to notify investors of investment risks during the consideration period.
It also imposed fines on NH Investment & Securities (980,000,000 won), Mirae Asset Securities (140,000,000 won), Korea Investment & Securities (110,000,000 won) and Samsung Securities (100,000,000 won) for violations, including breaches of recording obligations, related to the sale process for H-index ELS products.
Sangyeop Oh
yub@d-today.co.kr