NH Investment Accelerates Preparation to Introduce Responsibility Structure

An Opportunity to Foster NH Investment & Securities' Unique Internal Control Culture... Efforts to Enhance Employee Responsibility

NH Investment & Securities announced on the 22nd that it is accelerating the establishment of its accountability structure in accordance with the amendment to the Financial Company Governance Act, scheduled to take effect in early July.

NH Investment & Securities has already begun building the human and physical infrastructure necessary to establish the accountability structure and fulfill internal control management obligations. In the regular organizational restructuring of 2023, the company created a Compliance Planning Team composed of internal control experts under the direct supervision of the Chief Compliance Officer to respond to the introduction of the accountability structure, starting tasks such as job analysis. In January, an explanatory session was held at an executive workshop attended by all executives including the CEO, with experts from Samjong KPMG invited.

The explanatory session emphasized the importance of internal control and the need for employees to recognize themselves as the main agents responsible for performing internal control. Based on this, NH Investment & Securities is implementing various efforts to build consensus on the importance of internal control.

The accountability structure is a document that records the allocation of responsibilities by position for executives of financial companies, identifying the ultimate person responsible for the company’s key operations. It was introduced to prevent the delegation of internal control responsibilities to others. The amendment to the Financial Company Governance Act, passed by the National Assembly in December last year, includes improvements to internal control systems in the financial sector, such as the introduction of the accountability structure and the imposition of internal control management obligations.

The submission of the finalized accountability structure will be implemented from July for banks and financial holding companies, with grace periods depending on the financial sector, total assets, and total operating assets. Securities companies must complete the submission of the accountability structure by July 2025. NH Investment & Securities plans to introduce it ahead of the regulatory schedule to ensure high completeness.

Son Seung-hyun, Head of the Compliance Support Division and Chief Compliance Officer at NH Investment & Securities, stated, "We intend to use the introduction of the accountability structure as an opportunity to overhaul the company’s overall business processes and address issues, thereby creating a unique internal control culture at NH Investment & Securities." He added, "This will not be a one-time event just to submit the accountability statement, but we will ensure that all employees develop a sense of responsibility related to internal control."

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