Licensing Manual for Financial Investment Services Business

The Financial Supervisory Service (“FSS”) announced a complete revision of the manual for licensing requirements and procedures for financial investment services business. The new manual enhances transparency on the licensing criteria for regulatory approval. Specifically, the new manual provides guidance on:

• requirements on human capital allocation and physical facilities including IT facilities, communication channels, business space security system and supplemental facilities needed in order to maintain business continuity;
• requirements on the applicant’s business plan, such as feasibility and consistency of the business plan in respect of profitability forecasts and internal controls for investor protection; and
• arrangements for prevention of conflict of interests, internal control standards and the integrity and efficacy of Chinese walls.

The FSS also announced that an English translation of the manual will be available on its website in due course.