FSS convenes compliance officers, stresses management of ETF liquidity and deviation rates
The FSS 5in 22held a workshop for compliance officers at asset management firms to discuss ETF liquidity and deviation-rate management, advertising regulations, and AI-based compliance monitoring. 350people attended, and 7the introduction of the responsibility framework and the results of a pilot inspection were shared.
The Financial Supervisory Service 5in 22held a workshop for compliance officers at asset management firms. It took place at the FSS headquarters in Yeongdeungpo-gu, Seoul. Compliance officers and employees in charge of related duties, numbering 350people, attended.
The workshop focused on liquidity management and deviation-rate management in ETF operations. Regulations on product advertising and compliance monitoring using artificial intelligence were also discussed. The FSS explained that it was preparing for the introduction of the responsibility framework in 7.
An FSS deputy governor emphasized the responsibilities of compliance officers. The FSS called on compliance officers to oversee the operation of the responsibility framework and verify compliance with advertising rules. The FSS also pointed out problems with manuals made by copying the wording of laws and regulations.
The Financial Supervisory Service warned of cases in which fund managers violated collective investment agreements during fund management. It also advised vigilance against violations of disclosure obligations related to voting rights. Managers were instructed to review their internal control systems.
The Financial Supervisory Service shared the results of a pilot inspection of large financial investment firms. It said it would refine the scope of supervision and inspections based on the results. It also outlined the schedule for introducing responsibility maps at small and medium-sized financial investment firms.
Materials distributed at the workshop included examples of supervisory findings and inspection items. The Financial Supervisory Service called on compliance officers and asset management company employees to take specific actions. It said it would continue to provide further guidance on its future supervisory direction and inspection schedule.