Shinhan Bank board accepts FSS Lime recommendation

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Shinhan Bank board accepts FSS Lime recommendation

Shinhan Bank’s board Wednesday accepted a Financial Supervisory Service (FSS) recommendation for compensation of some Lime Asset Management investors.  
Earlier this week, a dispute settlement committee at the FSS advised the bank to compensate an investor 75 percent of the principal committed to a Lime financial product marketed by Shinhan and 69 percent to a small company.  
The notice is not binding.
While the committee made the decisions on two test cases for the bank to use as a guideline, the bank will discuss reimbursement rates for other individual investors at between 40 and 80 percent.
The bank was expected to accept the guideline issued by the FSS committee before an FSS sanctions review committee meeting, scheduled for Thursday, takes place. The bank is hoping punishment of its CEO could be lessened if it agrees to offer compensation to investors affected by the Lime fund scandal.
In a prior notice by the FSS to Shinhan Bank, the regulator said CEO Jin Ok-dong would be subject to a reprimand warning. The warning bars Jin from holding positions at financial companies for three years, although current terms can be completed.
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