"People Should Not Be Left Unaware"...Financial Authorities Inspect Sales of National Participation Growth Fund

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[The Financial News] As the 'People Participation National Growth Fund' is set to launch on the 22nd, financial authorities have urged strict measures to prevent inappropriate sales.
\r\nKwon Dae-young, vice chairman of the Financial Services Commission (FSC), stressed the point on the 20th at a meeting in Yeouido, Seoul, to review preparations for the sale of the People Participation National Growth Fund, hereinafter referred to as the National Participation Growth Fund, held at the Korea Financial Investment Association (KOFIA).
\r\nKwon said, "No matter how well-intentioned a product may be, if it is not explained properly at the sales site, customers may misunderstand it." He added, "Since this product is being sold to the general public rather than professional investors, please make sure sales staff are thoroughly trained during the remaining period so that people do not misunderstand the product structure, the possibility of principal loss, or the fund's maturity."
He also emphasized the need to inspect computer systems in preparation for a surge of early subscribers.
Kwon said, "Because the fund will be sold on a first-come, first-served basis, there is a high likelihood of a rush of applications at the beginning of the sales period." He added, "Please focus on ensuring the stability of the computer systems." He also told sales firms, "Prepare a stable operating system, including expanded server capacity and intensive monitoring, to handle a temporary surge in subscribers." He further urged them to conduct sufficient testing in advance to minimize the risk of disruptions.
\r\nHe noted that applicants should be guided to obtain the necessary 'Individual Savings Account (ISA) income verification certificate' in advance so that demand for system access can be spread out. The government also plans to temporarily expand the processing capacity of linked systems and strengthen real-time monitoring during the sales period.
\r\nKwon said, "The National Participation Growth Fund is being created to foster advanced strategic industries that will lead the future of the Korean economy and to share the fruits of that growth with the public." He added, "To ensure that people do not miss out on subscribing simply because they lack information, sales firms should also use their own infrastructure to actively explain the subscription process and key precautions. I ask them to approach this with exceptional attention and a strong sense of responsibility."
\r\nMeanwhile, the National Participation Growth Fund will be sold on a first-come, first-served basis for three weeks, from the 22nd of this month to the 11th of next month, targeting the entire public. If the 600 billion won allocation is fully subscribed, sales may close early.
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zoom@fnnews.com Lee Jumi Reporter