FSS to tighten competition for accounting-firm engagements and foreign-exchange inspections…14joint inspection in years
The FSS 6month, warned against shortened audit hours and audit-fee dumping and said it would launch inspections if violations were found. During the same period, it will check banks’ NDF concentration and foreign-exchange positions weekly and daily, and conduct a joint inspection with the Bank of Korea 14years later. It announced recommendations for insurers to curb speculative foreign-currency positions and support for fintech companies entering Germany.
The FSS 6month 14day warned accounting firms about shortening audit hours and dumping audit fees. It said it would take measures, including launching an inspection, if signs of violations were confirmed.
The FSS specified that unusually reduced audit hours or a sharp decline in audit fees would be subject to inspection. It said it would examine issues arising during competition for engagements in the accounting industry.
In the banking sector, concerns were raised about NDF concentration, and the FSS said it would check banks’ foreign-exchange positions on a weekly and daily basis. It said it would expand the scope and frequency of regular inspections of banks.
The Bank of Korea and the Financial Supervisory Service 14announced that they would jointly inspect major foreign exchange banks for the first time in years. They explained that the joint inspection was intended to assess the status of foreign exchange risk management.
The authorities recommended that the insurance industry curb the expansion of speculative foreign-currency positions. They pointed out that insurers’ foreign exchange positions could become a source of losses.
The Financial Supervisory Service 6announced that it would support domestic fintech companies entering the German market. It said it would provide consultations on local regulations and payment infrastructure.11The Financial Supervisory Service
The Financial Supervisory Service announced instructions and support related to auditing, foreign exchange, insurance, and fintech at the same time. It warned that, if indications of violations were confirmed, it would begin supervision and consider additional sanctions.
The Financial Supervisory Service said it would continue regular inspections based on relevant information. It stated that it would issue additional notices and take measures when necessary.