10-Day Reflection Period for Complex Products... 14 Cases of 'Subscription Withdrawal' After Strict Enrollment

Recorded and reflection-applied products and timing for the elderly and others. Photo by Financial Services Commission

[Asia Economy Reporter Song Seung-seop] Since the implementation of the 'Measures to Protect Investors in Complex Financial Investment Products,' it has been confirmed that 14 cases of subscription withdrawal have been exercised at major commercial banks.

According to the financial industry on the 23rd, during the ten days since the measures began on the 10th, 14 cases of subscription withdrawal were received at the five major banks: KB Kookmin, Shinhan, Hana, Woori, and NH Nonghyup Bank.

The measures define complex financial investment products as derivatives and others that can incur a principal loss of 20% or more. A cooling-off period of at least two business days is guaranteed, and if the subscription intention is not confirmed, the investment funds are returned.

This subscription withdrawal was exercised after the Financial Consumer Protection Act (FCPA) made the subscription process more stringent. Currently, some complex financial investment products take about an hour to sell. Despite going through dozens of investment prospectuses and fulfilling explanation obligations, 14 requests to withdraw subscriptions just a few days later were received.

However, since it is still early in the implementation phase, many opinions suggest that the trend should be observed. It is also known that dozens of products temporarily suspended sales or made new subscriptions impossible because they could not label the product as a 'complex financial investment product' in the prospectus.

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