FSS reprimands 4 brokerages for illegal rebates
[THE INVESTOR] Korea‘s financial regulator said April 21 it has decided to reprimand four securities firms for receiving illegal rebates.
The four brokerages were allegedly accused of receiving a total of more than 10 billion won (US$8.80 million) in illegal rebates from the Korea Securities Finance Corp. in return for depositing their customers’ money, according to officials at the Financial Supervisory Service.
Mirae Asset Daewoo will receive a relatively heavier penalty of an “institutional warning” because its employees received a large portion of the illegal rebates.
NH Investment & Securities and Yuanta Securities will be slapped with a relatively lighter penalty of an institutional caution.
The three brokerages and Korea Investment & Securities will also be fined. In addition seven executives and seven officials will receive a caution, the FSS said.
By Alex Lee and newswires (firstname.lastname@example.org)