The Korea Federation of Banks Holds Briefing Session on the Financial Consumer Protection Act and Reviews Its Contents

[Image source=Yonhap News]

[Asia Economy Reporter Park Sun-mi] On the 25th, as the Financial Consumer Protection Act (FCPA) came into effect, the Korea Federation of Banks announced that it held a 'Banking Sector Financial Consumer Protection Act Briefing' for employees of member institutions the day before to review important matters.

The briefing on the FCPA in the banking sector covered ▲ major changes following the enforcement of the FCPA ▲ obligation to establish internal control standards for financial consumer protection ▲ regulation of six major business practices ▲ newly introduced systems such as withdrawal of subscription, termination of illegal contracts, and punitive fines.

This session was organized to review important matters together ahead of the law's enforcement, including a reminder about the significantly strengthened product sales procedures under the FCPA.

The law firm Kim & Chang, which gave the presentation, explained the obligations financial companies must comply with, such as the regulation of six major business practices, and the newly introduced rights of consumers, stating, “Employees of financial companies must thoroughly understand the mechanisms established at each stage of financial product sales to strengthen the rights and interests of financial consumers.”

Regarding this briefing, Kim Kwang-soo, Chairman of the Korea Federation of Banks, emphasized, “There must be no negligence in preparing for the Financial Consumer Protection Act with the mindset that customer trust is the foundation of a financial company’s existence, and continuous efforts by financial companies are necessary to adapt to an environment that has changed to a higher level than before.”

Meanwhile, the Korea Federation of Banks stated that it is continuously consulting with financial authorities to prepare Q&A on the FCPA so that it can be applied in practical fieldwork. A federation official said, “We plan to actively support the smooth settlement of the FCPA in the field and ensure there are no inconveniences.”

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