Korean Regulator Reviewing Foreign Brokerages’ Derivatives Sales
South Korea’s financial regulator is reviewing derivative sales at three foreign brokerages for compliance with the country’s regulations.
The Financial Supervisory Service is conducting a partial review of the firms, it said in an e-mailed statement yesterday, without identifying them or releasing probe details. The FSS is planning an industrywide investigation into derivative product sales and began reviewing Credit Suisse Group AG (CSGN), Goldman Sachs Group Inc. and Royal Bank of Scotland Plc’s local units in late August, MoneyToday reported yesterday, citing unidentified financial industry officials.
The regulator will also examine whether the firms abide by local capital market rules, according to the online newspaper.
Credit Suisse’s Seoul-based spokeswoman Uni Park and Goldman Sachs’s spokesman Christopher Jun declined to comment on the MoneyToday report or whether their firms are under FSS review. Two calls to RBS’s Hong Kong office made outside of regular working hours were unanswered.
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