“Promoting competition and innovation in the financial sector”
Regulatory barriers will be significantly relieved to promote fair competition in the financial industry. The FSC plans to integrate current units of approval for financial services providers, which is excessively subdivided, into larger categories so that new players can easily enter the markets. In principle, financial service providers such as specialized credit financial business providers will be able to engage in additional business upon registration only, not application for approval.
The FSC will foster an environment where competitive players can live through competition by encouraging M&As and ensuring consumers’ right to choose. For example, the FSC will grant brokerage firms pursuing M&As preferential benefits such as giving a priority in approval for PEF business or applying consolidated Net Capital Ratio (NCR) in accounting.
In order to ensure financial consumers’ broader rage of choices for financial services, the FSC plans to introduce a ‘bank accounting switching’ system from 2016 in which money transfer services linked to a previous bank’s account automatically shift to a new bank’s account if customers switch their primary bank account.
In trusting contracts of retirement pension plans, the percentage that financial companies are allowed to include their own products will be gradually reduced in order to promote sound competition in each sector. Insurance companies will be further authorized to engage in trust business.
The FSC will also come up with its plan on how to integrate process and utilize big data accumulated by financial institutions and credit rating bureaus.