The top financial regulator is expected to wield more power over taking punitive actions against any unlawful activities by local financial companies, as part of an effort to reorganize the financial regulatory system, its officials said Friday.
The Financial Services Commission, the country’s policymaking watchdog, will likely be given the authority to impose restrictions or sanctions on financial players for illegal acts, according to its officials.
The authority to take punitive measures has so far been held by the Financial Supervisory Service, the executive body of the FSC, but such a right will be handed over to its superior institution, they said.
The FSC is a regulatory institution made up of government officials who are in charge of drawing up micro-financial rules, whereas the FSS is by law a private agency handling inspections and supervisions on financial companies in accordance with the FSC policy. (Yonhap News)
The reorganization of the financial watchdogs came as the government stepped up efforts to bring changes into the financial regulatory system, with a focus to break up some of the FSS divisions to bolster the function of consumer protection, amid voices saying it’s the international trend. (Yonhap News)
