Brokerage Firms to Ban Trading Volume-Linked Events Starting Next Year… Regulations Also Applied to High-Risk Products
4 Articles
4 Articles
Starting next year, financial authorities will ban transaction-linked cash payout events by securities firms that induce excessive short-term trading by investors. The provision of prizes for high-risk products will also be blocked; while fee discounts that lower transaction costs will be maintained, stricter regulations aimed at fostering a sound investment environment will be implemented.
Going forward, securities firm promotions that return a portion of transaction amounts as so-called "cashback" will be banned. This measure reflects concerns that such promotions induce excessive trading by investors, thereby increasing the potential for losses. On the 28th, the Financial Supervisory Service, in collaboration with the Korea Financial Investment Association, announced the "Plan to Strengthen Standards for Securities Industry Even…
(Seoul = Yonhap News) Reporter Kang Su-ryeon = Starting next year, securities firms will be prohibited from holding events linked to transaction amounts or targeting high-risk financial investment products to attract investors...
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