Financial Services Commission imposes 700 million KRW fine on Meritz Securities for 'commission regulation violation'

[Asia Economy Reporter Minji Lee] Meritz Securities was fined 689 million KRW by financial authorities for violating fee regulations and trading order acceptance regulations.

According to the Financial Services Commission on the 8th, the commission imposed this fine on Meritz Securities at its regular meeting on December 7 last year.

It was revealed that Meritz Securities collected several hundred million KRW multiple times under the names of the difference in yield from buying and selling corporate bonds and commercial papers (CP) included in the discretionary investment accounts they managed, as well as front-end fees for funds.

According to the current Capital Markets Act, securities firms managing discretionary investment accounts cannot charge fees other than discretionary fees calculated proportionally to the discretionary assets, such as brokerage fees.

Additionally, Meritz Securities was also pointed out for receiving trading orders from persons other than the account holders without a power of attorney.

Meanwhile, this violation was uncovered during an inspection conducted by the Financial Supervisory Service on Meritz Securities, and the FSS plans to aggregate other regulatory violations soon and impose institutional sanctions.

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