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Jipyong Advised Woori Financial Group On Preparation Of Operational Regulation for Financial Consumer Protection

2020.04.16

Jipyong advised Woori Financial Group on preparation of the operational regulation for financial consumer protection and other related matters. 
 
It is the first time for a financial holding company to enact an operational regulation for protection of financial consumers after establishing an organization for financial consumer protection which acts as a “control tower” for businesses and affairs related to protection of financial consumers. 
 
Jipyong studied and reviewed the laws and regulations such as the Financial Investment Services and Capital Markets Act, the Financial Consumer Protection Act, the Act on Corporate Governance of Financial Companies, the Financial Holding Companies Act, various models of regulations, and other laws and regulations so as to establish the best financial consumer protection organization in terms of structure, function, and authority, taking into consideration of the Group’s relationship with its existing internal control system, and the financial consumer protection organization of each of its subsidiaries. 
 
Indeed, the importance of financial companies’ enhancement of financial consumer protection, their corporate social responsibility (CSR) management, and the value of managing environmental, social, and governance (ESG) factors have drawn attention from the public. In particular, the Financial Consumer Protection Act will be effective from March 25, 2021. Against this backdrop, this case will serve as an important precedent relating to the internal control and financial consumer protection system of financial companies. 
 
Besides, the legislature is on its way toward enacting sub-regulations such as the Enforcement Decree of the Financial Consumer Protection Act, and the bill titled “Supervision of Financial Group Act”, which is going to be enacted on June 7, 2020, also contains regulations on the internal control system of financial groups. This means that sooner or later the lawmakers will enact an obligation forcing financial groups to establish an internal control policy and install/operate an internal control system. 
 
In light of the recent Lime fund and Optimus fund freezes, it is expected that there will be changes to various enactments and regulations for financial consumer protection. With its experience and expertise, Jipyong will provide professional legal consultation services to our clients in regard to financial companies’ enhancement of financial consumer protection, internal control system, CSR management and ESG management.

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