Samsung Securities took the lead in consumer protection among nine local equity brokerages, based on an annual assessment by the financial watchdog in South Korea.
According to evaluations by the Financial Supervisory Service released Monday, Samsung Securities received the highest grade of “good” in all 10 indicators of customer service in 2016, out of three grading scales -- “good,” “satisfactory” and “insufficient.”
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Samsung Electronics (Park Hyun-koo/The Korea Herald) |
Samsung Securities’ score improved compared to 2015, when it was graded “satisfactory” in two indicators.
Sixty-four financial institutions were reviewed by the FSS. Of this number, 29 were considered “outstanding” financial firms by customers as they received a “good” grade for at least eight indicators, including Samsung Securities.
The firm attributed its improved score to enhanced communication with customers including alerts on potential financial damage. Stronger communication enabled Samsung Securities to prevent sales of financial products without sufficiently providing detailed information to customers, according to the firm.
The assessment by the FSS was designed to encourage proactivity in consumer protection. It was based on five quantitative indicators including the number of complaints filed to the FSS, lawsuits against a financial institution and reports on customers’ financial damage. It also looked at five qualitative barometers, such as customer protection systems in developing and selling products, and the readiness of staff dedicated to customer protection.
