Financial Services Commission

Transcription

1 Financial Services Commission Better Financial Policy & Regulation

2 The FSC is a government agency with the statutory authority over financial policy and regulatory supervision. Greetings from the Chairman The Moon Jae-in administration embarked on the new journey for a better country with the pledge of equal opportunity, fair process, and just outcome. Equality in finance will be translated into better financial services and greater financial inclusion that benefit as many consumers as possible. Fairness in finance starts with respecting market principles and establishing fair order. A just outcome in finance is achieved only when all players in financial markets do their best in their role to ensure trust in the financial sector. The FSC set out three principles for financial policy under the Moon administration. First, finance will fund innovation and entrepreneurship in the fourth industrial revolution to boost growth potential and create jobs in Korea s economy. The financial sector will also become a job creator with new and innovative financial services. Second, trust in finance will be strengthened. The FSC will ensure greater autonomy for financial institutions and stronger protection for financial consumers. Financial stability is a prerequisite for sustainable growth of the financial sector. To this end, the FSC will remain vigilant at all times to detect and respond timely to risk factors. Last but not least, financial inclusion will be expanded. Finance shall take greater social responsibility corresponding to its growth. The FSC will make sure benefits of our financial policy reach out to financiallymarginalized households. 03 Greetings from the Chairman 04 Introducing FSC 06 Organization 08 Financial Policy Agenda 11 Global Leadership The FSC will always listen carefully to the voices of financial institutions and consumers to reflect them into our financial policy. Choi Jongku Chairman, Financial Services Commission 02 03

3 Introducing FSC Promoting financial stability, fair market order, consumer protection and advancement of Korea s financial industry Vision Fostering the growth of the financial sector that drives the development of the real economy financial industry advancement financial market stability fair market practices consumer protection Mission Korea s financial supervisory structure underwent major changes following the Asian financial crisis in To ensure effective and efficient supervision of all financial sectors, the Financial Supervisory Commission was established in April 1998 as an integrated supervisory agency with consolidating financial supervisory authorities across all financial sectors. The FSC is responsible for formulating financial policies, supervising financial institutions and financial markets, protecting consumers, and advancing Korea s financial industry. The Financial Supervisory Commission was reorganized into the current Financial Services Commission (FSC) on February 29, 2008 with the integration of the Financial Policy Bureau of the former Ministry of Finance and Economy. The FSC thus has the statutory authority to draft and amend financial laws and regulations, and issue regulatory licenses to financial institutions. In addition, the FSC oversees cross-border matters such as supervising foreign exchange transactions conducted by financial institutions to ensure their financial soundness. Korea Financial Intelligence Unit (KoFIU), which was also integrated into the FSC as part of the reorganization, leads the government s anti-money laundering and counter-terrorism financial efforts. Formulating Develop financial policies that support economic growth Promote financial market stability with macro & micro policy tools Improve efficiency and resilience of financial markets Protecting Protect the rights of consumers in financial transactions Mediate and resolve consumer complaints Provide consumer and investor financial education programs Advancing Enhance competitiveness of the financial industry Promote Korea as a global financial center Support domestic financial institutions in globalizing business operations Supervising Supervise financial institutions and oversee financial markets License financial services providers Investigate unlawful market conduct 04 05

4 Organization FSC is a government agency with statutory authority over financial policy and regulatory supervision. FSC s functional responsibilities are shared among Securities and Futures Commission(SFC) and subordinate bureaus. Organization chart Securities and Futures Commission Spokesperson s Office General Administration Division Planning & Coordination Bureau Financial Consumer Bureau Creative Planning & Finance Office Regulatory Reform & Legal Affairs Office Audit & Inspection Office Financial Consumer Policy Division Microfinance Division Household Financing Division Financial Services Commission Social Finance Team The FSC consists of nine commissioners: Chairman, Vice Chairman and seven Commissioners including four ex-officio positions held by the Vice Minister of the Ministry of Strategy and Finance, the Governor of the Financial Supervisory Service, the Deputy Governor of the Bank of Korea, and the President of the Korea Deposit Insurance Corporation. The FSC deliberates and decides on financial policy matters relating to the inspection and supervision of financial institutions and the securities and futures markets. Matters relating to the securities and futures markets are largely delegated to the SFC. The FSC also has the authority to issue and revoke licenses from financial institutions. Legislation relating to the financial sector is drafted and submitted to the National Assembly by the FSC. Financial Services Commission Capital Markets Bureau Financial Policy Bureau Capital Markets Division Asset Management Division Fair Market Division Financial Policy Division Financial Market Analysis Division Industrial Finance Division International Finance Division Securities and Futures Commission The SFC is a sub-commission within the FSC responsible for the oversight of the securities and futures markets. It consists of five members including the Chairman of the SFC. The Vice Chairman of the FSC concurrently holds the chairmanship of the SFC. The principal role of the SFC is to investigate market abuses in the securities and futures market and establish accounting standards and audit reviews. It also conducts advance review of matters relating to the securities and futures markets to be deliberated by the FSC. Financial Intelligence Unit (KoFIU) Financial & Corporate Restructuring Policy Bureau Financial Industry Bureau Financial Restructuring Division Corporate Restructuring Division Banking Division Insurance Division Non-Bank Division Financial Innovation Division Financial Intelligence Unit Founded in November 2001, KoFIU is the primary executive agency responsible for implementing an effective Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) regime in Korea. KoFIU s responsibilities include, (i) collecting, analyzing and disseminating Suspicious Transaction Reports and Currency Transaction Reports filed by financial institutions, (ii) formulating and implementing effective AML/CFT policies and regulations and (iii) supervising and overseeing financial institutions compliance to AML/CFT obligations. Financial Innovation Bureau Financial Group Regulation Bureau Capital Market Investigation Unit Electronic Finance Division Financial Data Policy Division Financial Group Regulatory Reform Team Financial Group Governance Team 06 07

5 Financial policy agenda The Moon Jae-in administration put forth people-centered economy as a key policy vision, which focuses on investment in people to motivate them to stand on their own, work and grow. To deliver on the promise of people-centered growth, the FSC set forth three key directions for financial policies. Productive Finance Funding innovation and entrepreneurship in the fourth industrial revolution Finance will create jobs, improve household income, and boost economic growth. Creating a virtuous cycle of capital, where innovative ideas and technology grow into start-ups to scale-ups to exits. Reshaping financial regulatory framework to attract new players into financial services sector to promote competition and innovation. Improving banks lending practices to enable entrepreneurs to use their ideas and technology as collateral to get a loan for a new business. Inclusive Finance Broadening access to financial services Finance will expand opportunities for those underserved or marginalized to make a new start. Reducing financial cost for low-income households who are burdened with heavy debt repayment and forced to borrow at much higher interest rates. Easing debt burden for borrowers long suffering from overdue loans, whose legal obligations to repay already expired so that they can start with a clean slate. Expanding affordable financial services for those with in-between credit ratings, underserved due to a bipolarized market divide between high-credit and low-credit borrowers

6 Global leadership Asia s Financial Hub Global Competitiveness Knowledge Sharing International Cooperation The FSC continues to pursue its initiative to make Korea as a financial hub. To attract foreign investment, we endeavor to strengthen global competitiveness of the finance industry and improve business environment in Korea. The FSC supports financial institutions to expand business overseas by improving regulations and actively communicating with the industry. The FSC working closely with affiliated agencies and financial institutions to share financial expertise and knowhow including financial infrastructure with emerging economies. The FSC signed 61 MOUs with foreign financial authorities and international organizations for closer cooperation in financial policy and supervision. Trustworthy Finance Protecting trust in our financial system Finance will serve the interests for all financial institutions, consumers and investors. Ensuring financial stability and soundness with close monitoring of and prompt responses to risk factors in financial markets. * International Organization of Securities Commission (IOSCO) * European Securities and Markets Authority (ESMA) * World Bank (WB) Enhancing transparency and fairness in financial regulations that benefit both financial institutions and financial consumers. Promoting global standards in financial rules and practices to garner further trust from investors in the Korean financial markets and economy. UK : FCA, PRA, BOE JAPAN : FSA GERMANY : Bafin CHINA :CSRC, CIRC, CBRC FRANCE : COB, CB VIETNAM : SSC, SBV, MOF, NFSC MALAYSIA : SC UAE : DFSA, SCA, IA US : SEC, NAIC, FRB, FDIC, OCC, OTS, USCFTC HONG KONG : HKMA HUNGARY : HFSA, NIO QATAR : QFCRA SINGAPORE : MAS CAMBODIA : MOEF, NBC, SECC RUSSIA : FFMS AUSTALIA : APRA, ASIC NEW ZEALAND : RBNZ BRAZIL : BCB MONGOLIA : BOM, FRC TURKEY : BRSA, CMB, UT INDONESIA : BI, FSA, OJK THAILAND : OIC, TSEC UZBEKISTAN : MOF, CBU KAZAKHSTAN : NBK, MEDT MOLDOVIA : NBM INDIA : RBI MEXICO : CNBV IRAN : MEAF, CBI, SEO OMAN : CMA 10 11

7 Seoul Government Complex, 209 Sejong-daero, Jongno-gu, Seoul 03171, Republic of Korea homepage: mobile webpage: meng.fsc.go.kr Printed on paper that is 100% recycled and 100% recyclable