FSC shortens path to expansionTo help boost investment in the financial industry, the nation’s financial watchdog has come up with additional measures to relax regulations involving the sector.
The Financial Services Commission said yesterday it will allow institutions to expand or start investment businesses more easily by simplifying regulatory procedures.
The announcement followed Thursday’s unveiling of a plan to revise as many as 711 regulations that the authority found were outdated or a hindrance to the growth of the industry.
Financial institutions that want to expand their current investment businesses can now do so without having to wait for the government’s approval.
For example, an entity that used to be involved only in securities can invest in exchange-traded derivatives just by registering with the authority.
In addition, general insurers will be allowed to participate in the money-trust business.
Futures investment firms will be able to expand their development of products based on monetary, interest rates and credits.
The measure is part of the FSC’s plan to eliminate barriers among different sectors within the financial industry.
Currently, financial institutions are required to wait as long as eight months to participate in new businesses.
“Eliminating the approval process will help reduce the waiting time for institutions to three to four months,” said the commission in a press release.
Until the law is revised, the FSC will help institutions that are willing to start new investment businesses with a temporary fast-track approval system.
They will be required to submit to six types of documents for approval instead of the current 24.
Along with the measure, the FSC said asset management firms will also be subject to loosened requirements for their operations.
The minimum amount of capital for an asset management company in Korea will be lowered from the current 14 billion won to 8 billion won.
“By removing the hidden, unnecessary rule that has been a burden for investment businesses, the latest measure will help restructure the overall financial investment market, give companies more flexibility in setting investment strategies and help them cut costs,” said an FSC official.
BY Song Su-hyun [firstname.lastname@example.org]
More in Finance
CU gets into the foreign exchange transaction business
Kospi hits another record high despite Covid spike
5-day winning streak ends as Kospi drops 0.62 percent
Debt is the latest hot product being pushed into the market
China's WeChat Pay and Seoul's Zero Pay now interoperable