ENFORCEMENT DECREE OF THE FINANCIAL INVESTMENT SERVICES AND CAPITAL MARKETS ACT

A new version of the Enforcement Decree of the Financial Investment Services and Capital Markets Act was published on the Korean Law Information Center, the official legal information website of South Korea. The Decree is the key legislation under the Financial Investment Services and Capital Markets Act and contains matters delegated by the Act such as conduct rules, asset management, investment limits of investment funds, etc.
This latest revision includes amendments through August 30, 2022, and modifies numerous articles in the legislation, impacting a range of areas in the asset management, collective investment schemes, disclosure and registration requirements.
The updated articles include:
– Article 77, detailing special cases regarding the sale of collective investment securities.
– Article 80, outlining exceptions to restrictions on asset management limits.
– Article 81, explaining the circumstances, grounds, etc., under which restrictions on asset management limits can be exceeded.
– Article 88, putting forth restrictions on contingent remuneration.
– Article 92, providing guidance on asset management reports.
– Article 93, clarifying the means, etc., of ad hoc public disclosure.
– Article 118-16, establishing measures, etc., to be taken by issuers of online small-value securities.
– Article 121, related to universal shelf registration statements.
– Article 209, defining registration requirements for collective investment schemes.
– Article 211, describing the methods, procedures, etc., for registration.
– Article 217, concerning matters subject to resolution of general meeting of beneficiaries.
– Article 223, explaining grounds for termination allowed without approval.
– Article 229, on amendments to articles of incorporation.
– Article 241, dedicated to money market funds.
– Article 242, related to closed-end funds.
– Article 243, dealing with multiple-class funds.
– Article 255, concerning redemption price and fees.
– Article 271-20, titled „Managing Members, etc.“.
– Article 304, addressing the deregistration of foreign collective investment schemes.