 Self-regulation |
 KOFIA is the sole self-regulatory organization (SRO) of the Korean financial industry. KOFIA approaches self-regulation as a service that should be responsive, flexible and market-friendly, rather than rigid regulatory supervision. To ensure its ability to effectively conduct its role and function as a SRO, KOFIA maintains the Self Regulation Committee (SRC). The SRC is responsible for the overall self-regulation activities, such as decision-making for the establishment and revision of regulations or applying penalties on members and executives. The committee is headed by the standing SRC Chairman. |
| KOFIA's main areas of self regulation are: |
1. Setting regulations and the best practices guidelines for fair business activities; KOFIA establishes regulations such as the rules on fair business activities among member firms and regulations for securities underwriting. In addition, the association also sets various standards (guidelines) such as standard investment products recommendation rules, and Chinese Walls and standard internal control norms to prevent conflicts interests.
2. Reviewing standard agreements and advertisements; For investor protection, KOFIA performs preliminary reviews of the advertising of financial investment products and the business activities of financial investment firms. It also reviews the terms and conditions of each financial investment product, and sets standard agreements to provide support to the business activities of financial investment firms.
3. Inspecting members; KOFIA conducts member inspections and applies penalties for the violation of regulations
4. Registering and conducting qualification exams for financial professionals; In order to conduct business activities, such as recommending investment instruments or securities consulting and analysis, financial professionals must receive accreditation by passing qualification exams or completing training, and registering with the association. KOFIA manages both the registration of professionals and the qualification exams.
5. Settling disputes; To protect investors, KOFIA runs a dispute settlement center with an in-house attorney to arbitrate disputes. |
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