FSC Proposes Measures to Strengthen Internal Control of Financial Companies

The FSC (Financial Services Commission) has announced a plan to strengthen the internal control system within financial companies. The proposed measures are following:
– each executive officer’s duties and responsibilities in a financial firms should be clearly outlined in order to raise awareness of these officers about their area of internal control
– the CEO of the company is responsible for delivering the transparency of division of internal control work between the officers, as well as developing a standardized internal control procedure
– these officers will work closely with the internal control management and ensure that all standards are operating efficiently
– executive officers might be exempt from sanctions if a financial incident takes place “ as a way to ensure protections against unforeseeable or uncontrollable accidents. This aims to encourage the officers to fulfill their oversight duty thoroughly rather than to threaten them with sanctions
The FSC will gather feedback on the proposed internal control measures and will revise the Act on Corporate Governance of Financial Companies.