Financial Sector Consumer Protection Officers Request Authorities for "Guidelines Needed"

Meeting of Chief Consumer Officers (CCO) for Financial Consumer Protection

[Asia Economy Reporter Park Sun-mi] Ahead of the enforcement of the Financial Consumer Protection Act (FCPA) on the 25th, chief officers responsible for consumer protection at financial companies have requested the financial authorities to establish specific guidelines regarding the obligation to prepare internal control standards.

According to the Financial Supervisory Service (FSS) on the 23rd, Kim Eun-kyung, Director of the Financial Consumer Protection Division, held a non-face-to-face video conference with chief consumer protection officers (CCOs) from banks and life insurance companies, as well as consumer protection executives from the Korea Federation of Banks and the Life Insurance Association. The meeting was held to review preparation status by sector ahead of the FCPA enforcement on the 25th and to listen to field difficulties and suggestions.

Financial company CCOs conveyed difficulties related to reestablishing existing sales procedures to comply with the six major sales regulations under the FCPA and the subsequent development of IT systems.

They also expressed the need for specific guidelines on the obligation to prepare internal control standards, which has a six-month grace period after the law’s enforcement. Additionally, they requested strengthened communication and the establishment of a close cooperative system between the supervisory authorities and the financial industry to ensure the swift establishment of the FCPA.

At the meeting, Kim Eun-kyung urged the CCOs to make every effort to ensure the flawless implementation of the FCPA, emphasizing that the law will not only enhance the rights and interests of financial consumers but also serve as an opportunity to boost public trust in financial companies. She also promised to continuously communicate with the financial industry to resolve the difficulties and suggestions raised during the meeting and to provide more active guidance and support from the financial authorities for the successful settlement of the FCPA.

The FSS plans to hold additional meetings over the next three weeks to communicate with CCOs from various sectors and gather opinions from the field in connection with the enforcement of the FCPA. Following the participation of bank and life insurance company CCOs in this meeting, property and casualty insurance companies and financial investment companies will participate on the 26th and 30th of this month, respectively, while credit finance companies will join on April 6th, and savings banks on April 9th.

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