Advising on the responses by “S Insurance” to on-site inspections of the Financial Supervisory Service

“S Insurance”, in its fiduciary role as the trustee overseeing a certain money market trust, has incorporated securities issued by other financial institutions into the assets of the designated trust. In the process of distributing beneficiary certificates of this money market trust to investors, the Financial Supervisory Service has highlighted that S Insurance may have breached its duty of explanation owed to investors as stipulated by the Financial Investment Securities and Capital Markets Act.

The Insurance and Reinsurance Practice Group at Lee & Ko spearheaded a comprehensive collaboration across the firm, involving the Regulatory Team and the Capital Markets Team. This collaborative effort aimed to deliver thorough legal counsel, encompassing the development of a response strategy with well-found solutions to address concerns raised by the Financial Supervisory Service.