The Korea Financial Investment Association revised related rules to allow changes of sales companies to improve trading convenience for subscribers to the Public Growth Fund.
The association said on the 28th that it prepared and put into effect on the 22nd an amendment to the Detailed Enforcement Rules on the Business and Operations of Financial Investment Companies that includes the Public Growth Fund among products eligible for changing the sales company.
Until now, funds receiving tax benefits—such as individual savings accounts (ISA), tax-exempt comprehensive savings, tax-preferential comprehensive savings, and the Public Growth Fund—had been excluded from eligibility to change the sales company due to complex tax information management issues.
However, the association noted that because the Public Growth Fund has a structure that restricts redemptions, it is pursuing a listing on the securities market to enhance investors' transaction convenience, and accordingly it revised related rules to allow changes of sales companies.
Going forward, the association plans to consult with related institutions, including the Korea Federation of Banks and Korea Securities Depository (KSD), on ways to build the related systems.