FSS Union Opposes Executive Control, Raises Concerns Over Independence Erosion

The labor union of the Financial Supervisory Service (FSS) has expressed opposition to control over the FSS by administrative agencies, including the Financial Services Commission and the Ministry of Economy and Finance, through innovation guidelines during the process of fulfilling the conditions for postponement of its public institution designation.

On October 6, the FSS labor union submitted a statement to the Financial Services Commission, the Ministry of Economy and Finance, and the Public Institutions Management Committee, stating, "The de facto direct application of the 'Public Institution Innovation Guidelines' could undermine the independence and expertise of the FSS."

Earlier, in January, the Public Institutions Management Committee postponed the FSS's designation as a public institution on the condition that it strengthen its management to at least the same level as other public institutions and improve its financial supervision. The committee specified that the FSS must consult with its supervisory ministry when adjusting personnel or reorganizing its structure and required strengthened management disclosure and regulations on employee welfare benefits.

The labor union pointed out, "If innovation guidelines and management evaluations centered on the executive branch are applied uniformly, the direction of financial supervision and the level of sanctions could be determined based on how well they align with government policy." The union added, "The most desirable way to guarantee the independence of financial supervision and to ensure transparency in supervisory operations is to have oversight and checks by the National Assembly—an institution representing the people with its own democratic legitimacy under the Constitution."

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