FSS Launches TF to Revise Asset Management Companies' Voting Rights Exercise Guidelines

On the 13th, the Financial Supervisory Service (FSS) announced the launch of a task force (TF) to revise the 'Guidelines for Asset Management Companies' Exercise of Voting Rights' in collaboration with the Korea Financial Investment Association and others.

According to the FSS, although there are guidelines for asset management companies that provide directions on exercising voting rights regarding major corporate management matters to support faithful exercise of voting rights by asset managers, these guidelines have not reflected the latest issues since their revision in June 2016. As a result, deficiencies were found in the guidelines as a reference for asset management companies when making decisions for actual voting rights exercise. Therefore, the FSS formed and launched a TF together with the Korea Financial Investment Association, the Korea Capital Market Institute, and seven asset management companies.

The TF will derive implications through analysis of the current status of asset management companies' voting rights exercise and disclosure tasks, as well as regulatory status in major foreign countries, and will supplement judgment criteria on the latest and important issues. Additionally, the TF will seek institutional improvement measures to ensure the completeness of disclosure content regarding asset management companies' exercise of voting rights.

An FSS official stated, "Based on the TF discussions, we will prepare improvement measures within the first half of the year, and after sufficient public consultation, we will implement follow-up actions such as revising the model code."

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