NH Investment and Hana Bank punished in Optimus case
The Financial Services Commission on Wednesday said it will prohibit NH Investment & Securities from selling new private equity funds for three months.
The brokerage firm was also hit with a fine of nearly 5.2 billion won.
NH Investment & Securities was found to have recommended Optimus Management Asset funds to brokerage firm clients with a guarantee of profits, and failed to check if the clients investing in the funds fully understood the financial product and the risks.
Hana Bank is prohibited for three months from being appointed as a trustee for new collective investments.
The bank failed as a custodian of the Optimus funds by allowing the asset management company that was struggling to use an overdraft facility to cover investments.
NH Investment & Securities was the biggest seller of Optimus funds, while Hana Bank is the country's leading custodian bank.
BY LEE HO-JEONG [email@example.com]