Financial Services Commission: "No Sanctions for Violations of the Financial Consumer Protection Act Until September"

Financial Services Commission Approves Non-Action Opinion Letter

[Asia Economy Reporter Kim Jin-ho] The Financial Services Commission announced on the 26th that it will not impose sanctions for violations of newly introduced or strengthened regulations under the Financial Consumer Protection Act (FCPA) until September 24.

On the same day, the Financial Services Commission held a regular meeting and approved a non-action letter based on this content. The FCPA, which has been in effect since March 25, expanded the scope of the six major sales regulations (principle of suitability, principle of appropriateness, duty of explanation, prohibition of unfair business practices, prohibition of improper solicitation, and prohibition of false or exaggerated advertising) to cover all financial products.

However, considering that it is the early stage of the law's enforcement, the Financial Services Commission set a six-month guidance period until September 24. Whether a regulation is newly established or strengthened is determined by the subject, such as financial product sellers or financial product advisors, under the FCPA.

However, if the violation involves intentional or gross negligence, or if the violation causes significant financial loss to financial consumers, sanctions will be imposed. The same applies if the supervisory authority requests correction of the violation but the correction is not made.

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