What kind of lightning is this … Never and Kagawa took the emergency one after another

On the 7th, Fintech companies are expected to discontinue or replace related services as financial authorities describe the financial product recommendation and comparison service of the online product site service as ‘brokerage’ rather than ‘advertising’. A financial consumer bank looks at the recommended insurance products in the salad application. Reporter Kim Beam-jun

As of the 25th, the investment products of other financial institutions such as finance and retirement cannot be compared with those of large technology (large IT companies) and fintech financial platforms such as Never Financial and Kagaw Bay Toss. It is also illegal to sell credit cards or insurance products together. Fintech companies are growing in size by implementing sales alliances through product launches and comparisons of financial institutions, “shaking the foundation of the platform’s presence” to the actions of the supervisory authority. Financial consumers are expected to be immediately confused.

Finance, insurance and credit cards are all blocked

The Financial Services Commission and the Financial Oversight Service announced that they held the 5th Financial Consumer Protection Law Enforcement Level Review Committee meeting on the 7th and shared with the field the application of the Act on Online Platform Services. Financial officials said, “Some sites operate the brokerage service as a ‘simple advertising agency’, but as a result of the review it was ruled to be an unregistered brokerage act and an amendment was sought. The illegality will be resolved soon.”

According to the guidelines of the authorities on that day, selling third party financial products will be practically difficult for financial sites. This is because most of the sales activities that are assessed as advertisements by big technology and fintech companies are defined as ‘brokerage’. For example, the act of providing an ‘investment’ service on the first screen of the platform was also considered ‘unregistered brokerage’. This time the company that received the amendment request showed an ‘investment’ service with ‘money, credit, insurance’ on the first screen. If you check product information such as finance, you can manage subscription, remittance and contract details at a glance. In this regard, officials said, “In the eyes of the consumer, all contracting procedures are performed on the platform, and the seller is marked with a very small size at the bottom of the screen.” The site is actively providing services to boost sales, but officials say consumers may misunderstand the contractor for the platform and face damage.

It is also difficult to compare and recommend financial products, which are Fintech ‘s representative services. The phrase ‘popular insurance recommended by Platform A’ also describes the act of selling insurance products as belonging to the brokerage. Officials ruled that recommending financial products was one of the sales processes, ‘identifying potential customers and encouraging them to join’. In the same way, credit card referral services are becoming more difficult. This is because the platform analyzes user information and attracts consumers in the form of ‘credit cards for OOO’ and then registers them as an intermediary process. Fund managers take into account the benefits (money, etc.) available by subscribing through a particular site. Because of this, I thought the side effects of the high status of the stage would be even greater. However, it is the judgment of the financial authorities that there is no problem under the Gold Law Act to compare the financial products of other companies and go directly to the site of the concerned financial institution and register directly.

Succession period ends in two weeks … ‘Thunderbolt’

Critics say that while this is a measure to protect financial consumers, it can only reduce consumer benefits. The Gold Soil Act, which came into force on March 25, was designed to reduce the damage to financial consumers in the wake of continued financial losses such as derivatives-linked funds (DLF) and lime. The main goal is to strengthen the verification process for the sale of financial products. As a result, when selling financial products such as finance, leading bank sellers have resorted to a strengthened sales practice. When selling goods, it is necessary to thoroughly analyze the investment trend, and post-solution practices such as withdrawal of sales have been strengthened. Officials announced that they would not impose sanctions until the 24th, with a six-month guidance period for the ban.

The problem is, standards for selling financial products through mobile and financial platforms were recently released. According to the Financial Services Act, financial business operators are classified as direct sales of financial assets, brokerage / brokerage of financial instruments, and consulting services for financial instruments. However, confusion in the field continued as the definition of ‘intermediate’ did not come out accurately. Services such as financial product comparison and sales link continued to function until recently.

An official from the finance ministry said, “Two weeks before the end of the guidance period, it is absurd for the administration to say that the business you are doing is illegal.” “

Jung Cho-Ram, Employee Reporter [email protected]

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