The FSC announced its plan to ease regulations on license system for financial investment to streamline the current overly subdivided business units and simplify license process.
Financial investment businesses will be required to apply for a business license for only when it first enters the sector. Once a financial institution is granted a regulatory approval for business, the company will be allowed to add new business within the same sector simply through add-on registration, without any additional procedure for approval.
Moreover, regulations regarding majority shareholders will be also revised. Under the current Financial Investment Business and Capital Markets Act, a person who was not able to participate in business management due to spinoff is classified as a “specially related person” which unreasonably restricts the person from becoming a major shareholder. After revision, such person will no longer be classified as a “specially related person”.
The current regulations related to institutional sanctions will be mended as well. Eased regulations will be applied to financial investment firms which are issued with sanctions equal to or stronger than institutional warning in order to give additional opportunities for them to secure their foot in the market.
Given that it would take time for the revision to the FSCMA to allow add-on registration system, a fast-track procedure will be introduced temporarily in order to expedite regulatory approval process for added-on businesses. Such is expected to significantly reduce time for regulatory approval from the current 7 to 8 months to 3 to 4 months.
Measures that can be taken without law revision will go into force in September.
click to read press release ->http://www.fsc.go.kr/downManager?bbsid=BBS0048&no=91626