Regulatory Audit & Capital Market Investigation

"Huge pool of talent, which is useful when we come across unfamiliar territory or when we need a good network."

- Chambers & Partners Asia-Pacific

Overview Key Services Practices Representative Cases Key Contacts Related Content

Overview

BKL works closely with clients throughout all stages of regulatory audit and capital market Investigation by regulatory agencies. Our Regulatory Audit & Capital Market Investigation group is highly acclaimed by Korean and overseas financial institutions, and clients can rely on our assistance in preparing for regulatory audits and investigations and formulating effective response strategies.

Korean regulatory agencies have reinforced their audit and investigative efforts in recent years with a view to protecting consumers and preventing unsound practices in the financial services sector. In addition, regulations are changing rapidly to keep up with developments in the financial market, which makes timely legal advice more important than ever.

BKL provide a full range of services, including preparing response plans, analyzing trends in audits/investigations, providing guidance throughout the audits/investigations, drafting post-audit/investigation opinions and providing legal representation before regulatory bodies such as the Disciplinary Committee, the Capital Markets Investigation Committee, the Audit Review Committee, the Securities and Futures Commission.

We mobilize our extensive resources to provide each client with a dedicated team that can adapt to meet the client’s specific needs. Our team consists of lawyers specializing in financial regulations, and ex-officials of government agencies such as the Financial Services Commission, the Financial Supervisory Service, the Korea Exchange and other financial regulatory agencies, which allows us to provide clients unique insight and well-balanced solutions.

Key Services

Financial Audits and Sanctions

Regulatory Audits by the Financial Supervisory Service

Regulatory Sanctions by the Financial Supervisory Service and/or the Financial Services Commission

Investigations of Unfair Trading Practices in Capital Markets

Investigations related to market manipulation, use of insider trading and other unfair trading practices

Practice Areas

Representative Cases

Represented banks and securities firms in the FSS investigation related to sale of certain private equity fund products

Represented a foreign securities firm and its employees in the FSS investigation related to sale of investment products and sharing of information in back-to-back transactions

Advised a KOSDAQ-listed company in relation to investigations on allegations of price manipulation, use of non-public information, illegal dealings and other unfair trading practices

Regulatory Audits and Sanctions

Represented banks and securities firms in the FSS investigation related to sale of certain private equity fund products

Represented asset managers and distributors in the regulatory investigation related to public offerings and missellings of certain funds (“OEM” funds) structured and managed at the instruction of distributors

Represented life insurance companies in the FSS comprehensive inspection

Represented a bank in the FSS regulatory investigation related to compensation for losses from fund products sold

Represented a foreign securities firm and its employees in the FSS investigation related to sale of investment products and sharing of information in back-to-back transactions

Represented a bank in the regulatory investigation related to incomplete sales of Debt-linked Fund products

Represented a securities firm in the regulatory investigation related to failure to submit resale contracts and derivatives reports

Represented a life insurance company in the regulatory investigation related to the meat industry financing

Represented a life insurance company in the regulatory investigation related to failure to provide accidental death insurance payments

Represented a specialized credit finance company in the regulatory investigation related to failure to report foreign exchange transactions following its establishment of a subsidiary in Laos

Regulatory Investigations of Unfair Trading Practices in Capital Markets

Advised large bio-pharmaceutical companies in relation to FSS investigations on unfair trading

Adivised a company under the Investigations by the FSS of the special judicial police

Advised a KOSDAQ-listed company in relation to investigations on allegations of price manipulation, use of non-public information, illegal dealings and other unfair trading practices

Advised a Korean conglomerate company in relation to investigations on insider trading by management

Advised a major Korean financial institution in relation to investigations on price manipulations of its shareholdings

Advised a foreign financial institution on a price manipulation case related to equity-linked securities

Advised on new types of unfair trading practice incidents including scalping