Intensive Inspection of 'Stock Leading Rooms'... Regulations Also Strengthened

[Asia Economy Reporter Minji Lee] The Financial Services Commission announced on the 28th that it will intensively inspect illegal activities in 'stock leading rooms' and reconsider related regulations.

On the same day, the FSC held a video conference of the Financial Risk Response Team chaired by Secretary-General Kim Taehyun to discuss management measures for quasi-investment advisory businesses. The FSC plans to fundamentally review the status and functions of quasi-investment advisors and effective regulatory measures for consumer protection.

Quasi-investment advisory businesses refer to industries that provide investment advice to unspecified many people through broadcasting, telecommunications, etc., unlike investment advisory businesses that offer one-on-one advice. Unlike investment advisory businesses that must register with financial authorities, quasi-investment advisory businesses can operate by simply filing a report.

Recently, complaints from investors have been increasing due to illegal and unsound activities such as investment losses caused by the lack of expertise of stock leading room operators, false and exaggerated advertisements, and refusal to refund usage fees. Accordingly, the Financial Supervisory Service plans to conduct intensive inspections to prevent illegal activities in stock leading rooms in cooperation with the National Police Agency.

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