The Financial Supervisory Service and the Korea Financial Investment Association held a briefing for chief executive officers (CEOs) of newly established private equity fund (PEF) managers and urged compliance management.
Seo Jae-wan, assistant governor for capital markets at the FSS, said at the "briefing for CEOs of newly established private equity managers" held at the Korea Institute of Financial Investment in Yeouido, Seoul, on 25, "Have CEOs directly inspect the internal control system for investor protection and reflect it in the responsibility map."
Seo stressed, "Always keep in mind the duty of loyalty and good faith to investors in managerial decision-making," and "the FSS will strictly hold to account any acts that prioritize the manager's interests over those of investors or damage order in the capital market."
The FSS also presented at the briefing both requests to the industry and examples of legal violations to watch for. It outlined reasons such as breaches of the ban on using job-related information, harming fund interests through related-party transactions, failure to appoint a compliance officer, and violations of the ban on concurrent positions.
The Korea Financial Investment Association also shared measures to improve private equity managers' compliance systems, including introducing training programs that support strengthening the capabilities of internal control staff at private equity managers.
The FSS said, "We will support private equity managers so they can faithfully perform their original role, such as expanding investors' access to investments and supplying venture capital to the market." The Korea Financial Investment Association also said, "We will strengthen ongoing training by adding a variety of practical case studies to related training programs for private equity managers."