Regulatory Alerts2017-02-27
Added · Updated
Proposed Money Market Act Establishing Rules for Borrowing, Lending, and Brokerage
The Financial Services Commission proposes new legislation defining money market transactions as trading of call money, repurchase agreements, and instruments maturing in less than one year. The draft requires FSC licensing for brokers, prohibits them from engaging in financial investment services, and subsumes existing brokerage provisions from the Financial Investment Services and Capital Markets Act. Money brokerage firms and the Korea Securities Depository must report daily buying and selling transactions to the FSC and the Bank of Korea, while designated entities must publicly disclose traded instrument and interest rate information on their websites. The proposed legislation is open for public comment until April 10, 2017.