The Financial Supervisory Service has begun a review of Mirae Asset Securities' sales process for private subscriptions to SpaceX's public offering shares. With investment fever running hot, the agency plans to focus on whether risks were sufficiently disclosed to investors and whether the professional investor system was inappropriately used.
According to the securities industry on the 5th, the Financial Supervisory Service (FSS) is examining whether Mirae Asset Securities complied with investor protection rules in selling subscriptions for SpaceX's public offering. The key focus is whether the guidance procedures were properly carried out so that investors could fully recognize the risks.
In particular, the agency is checking whether there were cases of abusing the professional investor system. The subscription targeted individual and corporate professional investors, and professional investors are subject to reduced investor protection compared with retail investors. The FSS also plans to look into whether investment advisory firms or discretionary investment firms illegally recruited retail investors to place proxy subscriptions, and whether individuals were aggressively pushed to register as professional investors for the sake of subscribing.
It is also checking for potential misselling, such as false or exaggerated advertising or omission of key risk disclosures. Previously, Mirae Asset Securities marketed that, upon SpaceX's listing, domestic investors would be able to participate in the public subscription, and at the time the Financial Supervisory Service (FSS) verbally imposed a restriction. The agency says it will also look into whether there were any illegal sales practices that exploited strong market interest in the current private subscription.
It is also reviewing whether exchange rate risk was disclosed. Since SpaceX is listing overseas, domestic investors would invest in dollars, and if the won falls against the dollar in the future, there is a possibility of incurring foreign exchange losses.
Meanwhile, Mirae Asset Securities opened the SpaceX private subscription on the day. Of the total $500 million to be raised, it sold the first tranche of $300 million, which was reportedly exhausted within minutes. The company plans to proceed with subscriptions for the remaining $200 million on the 8th.