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Financial firms brace for customer protection report
By Kim Yon-sePublished : March 17, 2013 - 20:43
The Financial Supervisory Service plans to publicize its yearly assessment of about 70 financial firms’ consumer protection, involving cases of customers’ complaints and dispute arbitration, next month.
Attention is being paid to whether Kiwoom Securities in the brokerage industry and Chartis in the nonlife insurance industry will be given the lowest grade of “class 5 (or poor)” for the 10th consecutive year.
Between 2004 (for the 2003 assessment) and 2012 (for the 2011 assessment), the two financial firms failed to garner the second-lowest grade of “class 4 (or insufficient)” or better in the annual regulatory evaluations.
Kiwoom Securities grabbed the No. 1 in market share in the sector of consumers’ stock trading via home trading system for the seventh consecutive year, far exceeding the No. 2 Samsung Securities.
Kiwoom, however, has invited frequent complaints from customers due to breakdowns or glitches in its online trading systems over the past few years.
Another major complaint was that the brokerage house incurred losses after arbitrarily investing in stocks with customers’ money, which is called discretionary transactions.
Amid the firm’s negligent consumer protection, the FSS conducted a full-fledged probe into Kiwoom by dispatching a dozen inspectors into the firm’s headquarters in Yeouido, Seoul, between mid-February and early March.
Chartis, formerly AIG General Insurance Korea or American Home Assurance Company Korea, has been “in rivalry with” Kiwoom Securities in customer protections.
Among petitions from consumers filed with the FSS was the insurer’s irregular application of contract terms for insurance payments.
While the FSS is scheduled to unveil its 2012 assessment in April, Chartis recently said it plans to change its brand name to AIG Korea, a former entity, next month.
The company has used one of the three brands ― AHA Korea, AIG General Insurance Korea and Chartis ― in consideration of the market situation at home and the status of its overseas headquarters.
The regulatory grades on the financial firms involve the class 3 (or average), class 2 (or fine) and class 1 (or excellent).
By Kim Yon-se (kys@heraldcorp.com)
Attention is being paid to whether Kiwoom Securities in the brokerage industry and Chartis in the nonlife insurance industry will be given the lowest grade of “class 5 (or poor)” for the 10th consecutive year.
Between 2004 (for the 2003 assessment) and 2012 (for the 2011 assessment), the two financial firms failed to garner the second-lowest grade of “class 4 (or insufficient)” or better in the annual regulatory evaluations.
Kiwoom Securities grabbed the No. 1 in market share in the sector of consumers’ stock trading via home trading system for the seventh consecutive year, far exceeding the No. 2 Samsung Securities.
Kiwoom, however, has invited frequent complaints from customers due to breakdowns or glitches in its online trading systems over the past few years.
Another major complaint was that the brokerage house incurred losses after arbitrarily investing in stocks with customers’ money, which is called discretionary transactions.
Amid the firm’s negligent consumer protection, the FSS conducted a full-fledged probe into Kiwoom by dispatching a dozen inspectors into the firm’s headquarters in Yeouido, Seoul, between mid-February and early March.
Chartis, formerly AIG General Insurance Korea or American Home Assurance Company Korea, has been “in rivalry with” Kiwoom Securities in customer protections.
Among petitions from consumers filed with the FSS was the insurer’s irregular application of contract terms for insurance payments.
While the FSS is scheduled to unveil its 2012 assessment in April, Chartis recently said it plans to change its brand name to AIG Korea, a former entity, next month.
The company has used one of the three brands ― AHA Korea, AIG General Insurance Korea and Chartis ― in consideration of the market situation at home and the status of its overseas headquarters.
The regulatory grades on the financial firms involve the class 3 (or average), class 2 (or fine) and class 1 (or excellent).
By Kim Yon-se (kys@heraldcorp.com)
