KSD Completes Fund Asset Reconciliation Support... "Strengthening Internal Controls and Reducing Risks"

[Asia Economy Reporter Minji Lee] Korea Securities Depository has launched support for fund asset reconciliation through the ‘Non-Marketable Asset Investment Support Platform.’

According to the Depository on the 24th, asset reconciliation support was completed for 8,774 funds (approximately 210,000 reported assets) between collective investment managers and trust companies, opened on June 28 last year, as of the end of the fourth quarter last year. This asset reconciliation is the first legal asset reconciliation under the Capital Markets Act’s subordinate regulations revised for private fund investor protection and system restructuring by policy authorities.

Participants in the asset reconciliation include collective investment managers, trust companies, and administrative management companies, with the target funds being public funds and general private funds for general investors. The target assets include all collective investment properties. Participants completed pre-registration of a total of 7,743 non-marketable asset information entries on the platform for asset reconciliation (2,043 securities, 4,504 non-securities/non-financial assets, 1,196 foreign currency securities).

The Depository stated, “With the full operation of the platform, standardization of non-marketable asset codes and computerized asset reconciliation will increase work efficiency and strengthen internal controls within the industry, thereby reducing risks. It will standardize different non-marketable asset management systems among participants and contribute to the computerized and automated full inspection of private funds by the Financial Supervisory Service.”

The Depository is additionally building a ‘Non-Marketable Asset Operation Instruction Support System’ to enhance the usability of non-marketable asset codes registered on the platform. Once standardized and computerized operation instructions for non-marketable assets are implemented, the scope of the FundNet service, which mainly covers marketable assets, is expected to expand further. The related service is scheduled to open on May 30.

The Depository added, “We will make our best efforts with the industry to ensure the platform successfully settles in the market, serving as a reliable safety device for private funds and restoring investor confidence. We will continue to add services by gathering opinions from participants in the asset management industry.”

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