Rep. Lee Yong-woo said, “The Financial Services Commission’s indiscriminate regulation has exacerbated the situation,” and pointed out, “Since this was a predictable situation, financial officials cannot be absolved of responsibility.” (Photo courtesy of Congressman Lee Yong-woo’s office) © Kim Chung-yeol, political journalist
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Financial authorities drastically reduce requirements for individual investors from 2019
Financial Services Commission ▲announced the 「Capital Market Innovation Task」in November 2018→ ▲announced detailed plans for 「Measures to improve entry requirements for individual professional investors」in January 2019 → ▲August 2019, the enforcement decree of the capital market Amendment Act → ▲November 2019, the requirements for professional individual investors have been significantly eased through the amendment and implementation of the Financial Investment Business Regulations.
CFDs, the main culprits of this SG crash, are high-risk products that can only be traded by professional investors, but it has been reported that the Financial Services Commission relaxed the requirements and indiscriminately allowed large amounts of individual professional investors to trade. produced the size of. In addition, securities companies at the time conducted aggressive business practices such as reducing fees for new clients and holding events in line with the stance of financial authorities.
Meanwhile, according to the Capital Market Risk Analysis Report published by the Financial Supervisory Service in 2022, although the number of individual professional investors has increased, professional investors have a general lack of understanding of the implications of the conversion, indicating that there is an incomplete Selling is putting the investor at risk of loss
Indiscriminate regulation exacerbates the situation…the situation that was predicted, the financial authorities cannot be relieved of responsibility
In response, Representative Lee Yong-woo said, “The Financial Services Commission’s indiscriminate regulation has exacerbated the situation,” and pointed out, “Since this was a predictable situation, financial officials cannot be absolved of responsibility.” hpf21@naver.com
* Below is the (full text) of the English article as translated by Google Translate. Google Translate is working hard to improve understanding. It is recognized that there may be errors in the English translation.
*The following is the (full text) of the English article translated by Google Translate. Google Translate is working hard to improve understanding. It is recognized that there may be errors in the English translation.
Lee Yong-woo “CFDs, Main Culprits of SG Crash, Reached 27,000 Individual Professional Investors!”
Number of Individual Professional Investors increased from 3,331 at the end of 2019 to 27,584 by the end of March 2023
While the significant easing of requirements for individual investors by the financial authorities in 2019 has been cited as a major reason for the recent SG crash, it was learned that by the end of 2023, the number of individual investors was set to reach 27,584.
Financial authorities drastically reduce requirements for individual investors from 2019
Financial Services Commission ▲announced the 「Capital Market Innovation Task」in November 2018→ ▲announced detailed plans for 「Measures to improve entry requirements for individual professional investors」in January 2019 → ▲August 2019, the enforcement decree of the capital market Amendment Act → ▲November 2019, through the amendment and enforcement of the Financial Investment Business Rules, the requirements for professional individual investors have been significantly eased.
CFDs, the main culprits of this SG crash, are high-risk products that can only be traded by professional investors, but it has been reported that the Financial Services Commission relaxed the requirements and indiscriminately allowed large amounts of individual professional investors to trade. produced the size of. In addition, securities companies at the time conducted aggressive business practices such as reducing fees for new clients and holding events in line with the stance of financial authorities.
Meanwhile, according to the Capital Market Risk Analysis Report published by the Financial Supervisory Service in 2022, although the number of individual professional investor registrations has increased, professional investors have a general lack of understanding of the implications of the conversion, indicating that there is Risk of loss to the investor due to short sale. are doing
Indiscriminate regulation exacerbates the situation…the situation that was predicted, the financial authorities cannot be relieved of responsibility
In response, Representative Lee Yong-woo said, “The Financial Services Commission’s indiscriminate regulation has exacerbated the situation,” and pointed out, “Since this was a predictable situation, financial officials cannot be absolved of responsibility.” hpf21@naver.com