NH Investment & Securities Executes Organizational Restructuring... Establishes 'OCIO Division' for Institutional Fund Management

[Asia Economy Reporter Lee Seon-ae] NH Investment & Securities announced on the 26th that it has carried out an organizational restructuring to respond to changes in the regulatory environment, provide customer-centric services, and strengthen competitiveness.

According to NH Investment & Securities, the recent revision of the Enforcement Decree of the Capital Markets Act has improved the Chinese Wall (information exchange blocking) system, enabling flexible organization design centered on customers. Through the restructuring, NH Investment & Securities reorganized the service-related organizations for institutional clients, which had been scattered due to Chinese Wall regulations, by function.

The company established a new 'Outsourced Chief Investment Officer (OCIO) Division' responsible for advising and supporting institutional fund management. Related organizations, such as the Institutional Sales Headquarters, which previously handled OCIO sales and planning, were placed under this division.

The head of the division concurrently serves as the Chief Executive Officer (CEO). The existing Wholesale Division now handles 'Equity Brokerage and Solutions for Institutional Clients.' The Prime Brokerage Headquarters, which was directly under the CEO, was moved under the Wholesale Division.

Additionally, the Premier Blue Headquarters was separated from the WM Division and reorganized directly under the CEO. This reflects the trend of differentiating service areas for ultra-high-net-worth clients beyond asset management to include complex consulting services such as IB, legal, real estate, tax, inheritance, and gifting for owner-operated companies. The company explained that this separate organization allows business operations tailored to the characteristics of the Premier Blue Headquarters.

To respond to the strengthening of investor protection policies such as the enforcement of the Financial Consumer Protection Act and to enhance expertise in product review capabilities, the company established the 'Financial Product Review Department' within the Risk Management Headquarters. This department oversees the review of financial products sold to customers.

In preparation for the introduction of financial investment income taxation starting January 2023, the company also established the 'Financial Investment Income Taxation Response TFT' directly under the Product Solutions Headquarters. The TFT plans to build systems to smoothly fulfill financial companies' obligations due to institutional reforms, prepare tax-saving strategies and related services according to the changed tax system, and establish customer communication plans.

An NH Investment & Securities official emphasized, "We have carried out organizational restructuring to strengthen expertise in line with rapidly changing capital market laws, regulations, and investment trends. We will focus all our capabilities on continuously maintaining a customer-centric sales philosophy by providing professional and differentiated services."

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