Proposed changes announced by the South Korea’s Financial Services Commission (FSC) which would allow IFAs to provide independent advice while adopting a new fee-based only regime similar to the UK.
Although IFAs wishing to operate in South Korea are already regulated under the Financial Investment Services and Capital Markets Act (FSCMA) – the legislation which was introduced in 2008 just before the global financial crisis hit, was rarely used due to a “loss of trust in asset management companies and concerns over miss-selling.
The FSC also confirmed that IFAs will have to adopt a fee-only model where service charges are paid for by the client with strict prohibitions on receiving commissions from product providers. If successful, the reforms are likely to come into force by May this year.
Intelligent Investments Limited firmly believes that the future of the Financial Advisory industry lies in the introduction of fee based advice that offers client full transparency with regards to the reason for the advice that is offered and a full understanding of the fees that they are paying. This is fully reflected in our company philosophy. Please visit our newly launched website to find out more