Mirae Asset Securities Halts Sales of Retirement Pension Wrap Accounts... Labor Ministry Issues Sales Suspension Notice

[Asia Economy Reporter Park Jihwan] Mirae Asset Securities has stopped selling wrap accounts that could be subscribed to as retirement pensions. This is due to a sales suspension notice from the Ministry of Employment and Labor.

According to the financial investment industry on the 6th, Mirae Asset Securities halted new sales of retirement pension wraps starting from the 13th of last month. Additional deposits to existing accounts have been suspended, and existing subscribers must terminate their contracts for the existing retirement pension wraps by June 30 of next year.

Mirae Asset Securities was the first among retirement pension providers to launch a retirement pension wrap in 2009. Before the product launch, they requested an official interpretation from the Ministry of Employment and Labor and received a judgment that there was no issue, but recently the Ministry reversed its previous interpretation, leading to the suspension of retirement pension wrap sales.

According to the Employee Retirement Benefit Security Act and its enforcement decree, retirement pension subscriptions can be made through insurance contracts or specific money trusts where the subscriber directly designates the management method. The Ministry of Employment and Labor considers wrap accounts to fall under unspecified money trusts that do not designate the management method and is reported to have notified a sales ban accordingly.

As of the end of last month, the number of subscribers to Mirae Asset Securities' retirement pension wrap accounts was about 20,000, with a balance of approximately 1.3 trillion won.

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