News
The Financial Services Commission (FSC) announced on January 31 that it would foster fair competition among fund sellers by establishing an open-ended fund supermarket.
The FSC head Choo Kyung-ho said, “A lot needs to be done to enhance investor protection,” adding, “We will limit the percentage of funds held by affiliates of a financial firm by diversifying the types of fund-selling companies and will make sure that open-ended fund-selling firms to sell various types of funds in an equitable manner will enter the market.
The open-ended fund sales network will likely be established through joint investment by asset management firms and securities firms, etc, and be run in a fair manner regardless of whether the funds are held by their affiliates or not.
The FSC head said, “Amid growing interest in mid-risk, mid-yield products, asset management firms’ philosophy and techniques have also become important,” adding, “I will lower barriers to entry for private-equity funds whose access has been limited and actively support asset management industry’ push overseas.