Daesin Securities, Lime Fund Voluntary Compensation

[Asia Economy Reporter Koh Hyung-kwang] Daishin Securities will voluntarily compensate investors who suffered losses from Lime Fund. In addition, it will also reorganize its internal system to strengthen consumer protection.

Daishin Securities announced on the 19th that it held a board meeting and finalized a voluntary compensation plan to prepay 30% of the loss amount to investors who subscribed to Lime Asset Management funds. Daishin Securities explained that this is part of measures to restore customer trust through proactive compensation under the grand principle of protecting financial consumers.

This pre-compensation plan was prepared by referring to compensation plans decided by other distributors, considering the product type and characteristics. The private settlement plan proceeds in three stages. First, 30% of the loss amount for general investors of Lime Fund (20% for professional investors) will be prepaid. Then, once the compensation ratio is finalized according to the Financial Dispute Mediation Committee's decision, the difference will be settled. If the compensation amount decided by the committee is higher than the prepaid amount, additional payments will be made. Finally, when the final compensation amount is confirmed following the fund liquidation, the difference between the prepaid amount and the final loss compensation amount will be settled.

Along with the voluntary compensation plan, Daishin Securities plans to establish an action plan to strengthen financial consumer protection and will work on restoring trust and improving processes throughout the product-related procedures. Through participation in the bridge management company currently being established, it plans to maximize investors' asset recovery and ensure thorough compensation.

Also, by next month, a Product Internal Control Department will be newly established under the Financial Consumer Protection General Department. It will strengthen supervision over the entire product sales process, from product introduction to sales and post-management. When introducing retail products, the Product Internal Control Department will be granted the authority to cancel product sales if it rejects the product.

Improvement measures for each stage of financial product sales will also be prepared. At the product introduction stage, only products approved by the newly established Product Internal Control Department will be sold. The department will review the product's stability by receiving proposals from asset managers and internal due diligence reports from the asset managers. The rating criteria for asset managers will be regularly checked to focus on supplying safe products.

At the post-management and institutional stages, continuous monitoring of sold products will be conducted, and a system will be introduced to notify subscribing customers of any issues occurring in the relevant fund. Additionally, financial consumer officers will be designated at each branch to regularly inspect incomplete sales practices.

Im Yoo-shin, head of Daishin Securities' Financial Consumer Protection Department, said, "Through this voluntary compensation plan and organizational restructuring, we will restore customer trust and improve organizations, systems, and processes related to product sales." He added, "We will also do our best to provide financial products and services with strengthened internal controls that meet the expectations of financial consumers to protect investors in the future."

This content was produced with the assistance of AI translation services.