Hana Bank fined $12.3 mil. for mis-selling private funds

Hana Bank, a major commercial bank in Korea, has been fined nearly 18 billion won ($12.3 million) for selling private funds to investors without properly explaining the associated risks, industry sources said Monday. The Financial Supervisory Service (FSS) imposed a fine of 17.94 billion won on the bank for mis-selling nine types of private funds that invested in overseas loan bonds and similar assets, including those in Italy and Britain, to a total of 963 investors between 2017 and 2019. While selling the products, which had a combined sales volume of 377.9 billion won, the bank had allegedly distorted or omitted key information, violating its duty to explain investment risks, according to the sources. Hana Bank had allegedly concealed the risk of investment losses and misrepresented the product structure, leading investors to believe they could safely recover both principal and interest, as if the products were guaranteed. In addition to the corporate fine, the FSS also imposed disciplinary actions, including reprimands and pay cuts, against about 10 bank officials, the sources added.Weiter zum vollständigen Artikel bei Korea Times Weiter zum vollständigen Artikel bei Korea Times