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Important Measures

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Important Measure October 2021

1.    FSC Eases Rules on Robo-Advisor Services Offered by Securities Investment Consulting Enterprises, Permitting Computer Automated Rebalancing Transactions for Customers Under Certain Conditions
To implement financial inclusion, provide more complete automated wealth management services to small investors, and protect the rights and interests of customers, the Financial Supervisory Commission (FSC) issued an order on 18 November 2021 to loose regulatory provisions regarding automated rebalancing transactions in Robo-Advisor securities services operated by securities investment consulting enterprises (SICEs). A SICE and its customer may contractually agree to allow the computer system to automatically execute rebalancing trades for the customer when an implementation threshold is reached and the agreed conditions for such transactions are met. The agreed conditions for automated rebalancing transactions can be the same agreed investment targets and proportions limits originally set between the customer and the SICE. The new FSC order additionally introduces a second option, which is for the SICE and the customer to agree on a list of approved funds in which automated rebalancing transactions may be executed within the scope of a certain limit on the degree of changes in investment among the funds. To provide automated rebalancing transactions under the second type of arrangement, a SICE is required to adopt measures in its internal control system to monitor and control the frequency of transactions.
Visitor: 898   Update: 2021-12-14