FSS Fines Hana Securities 330 Million Won for "Bond Mis-Selling"
Financial authorities have decided to impose a fine of 337 million won on Hana Securities for failing to properly assess customers' investment profiles or selling products with risk levels higher than their profiles warranted.
According to the financial investment industry on October 15, the Financial Supervisory Service (FSS) sanctioned Hana Securities for “mis-selling retail bonds.”
An FSS investigation found that in October 2022, Hana Securities' Branch A recommended a bond investment worth 98.7 million won to a general financial consumer without assessing information such as the customer's investment objectives, financial circumstances, and investment experience.
The investigation also found that in the same month, Center B recommended bonds classified as low-risk, Grade 4, to a conservative-type general financial consumer who could only be recommended ultra-low-risk products rated Grade 5. The center sold the customer 116.9 million won worth of the bonds.
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In addition, five branches, including Branch A, violated their duty to explain by recommending and selling bonds worth a total of 1.965 billion won on nine occasions between October 2022 and April 2024 without explaining the meaning of investment risk ratings, relevant precautions, and investment risk factors.
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