ACT ON THE PROTECTION OF FINANCIAL CONSUMERS
CHAPTER VI SUPERVISION AND DISPOSITIONS
조문단위인쇄
| Article 57 (Penalty Surcharges) |
| (1) | If a financial product distributor or advisor falls under any of the following subparagraphs, the Financial Services Commission may impose a penalty surcharge within a maximum of 50/100 of the revenue that it gained from contracts relating to such violation or an amount equivalent to such earnings (hereafter referred to as “revenue” in this Article): Provided, That in cases specified by Presidential Decree as cases where the person who committed such violation has no revenue gained from contracts relating to the violation or where it is impracticable to calculate such revenue, a penalty charge not exceeding one billion won may be imposed: |
| 1. | Where a financial product distributor or advisor omits to explain any important matter, in violation of Article 19 (1), or omits to provide a written explanation or obtains confirmation, in violation of paragraph (2) of that Article; |
| 2. | Where a financial product distributor or advisor commits an act falling under any subparagraph of Article 20 (1); |
| 3. | Where a financial product distributor or advisor commits an act falling under any subparagraph of Article 21; |
| 4. | Where a financial product distributor or advisor makes an advertisement of a financial product or other matter, in violation of Article 22 (3) or (4). |
| (2) | If a financial product distribution agent or broker whom a financial product direct seller authorized to act as his or her agent or broker for the conclusion of a contract for a financial product or the conduct of other relevant transaction (limited to financial product distribution agents and brokers acting as agents only for one financial product direct seller under this Act or any other finance-related statute or regulation) or an executive officer or employee of a financial product direct seller commits an act falling under any subparagraph of paragraph (1), the Financial Services Commission may impose a penalty surcharge on the financial product direct seller within a maximum of 50/100 of the revenue that he or she gained from contracts relating to such violation: Provided, That the amount may be reduced or exempted if the financial product direct seller has not neglected due care and supervision over relevant business activities to prevent such violation. |
| (3) | Where the Financial Services Commission may order a financial product distributor or advisor to suspend its business operation under Article 51 (2) 1 but suspending business operations is likely to seriously affect interested persons or undermine public interest, the Financial Services Commission may impose a penalty surcharge within a maximum of the profit that the financial product distributor or advisor is expected to gain during the period of suspension of business operations, in lieu of the suspension of business operation, in accordance with Presidential Decree. |
| (4) | Matters concerning the determination of the revenue gained from contracts relating to a violation under paragraph (1) shall be prescribed by Presidential Decree in consideration of the causes of change according to environmental changes, characteristics of each type of financial product, the size of business of financial product distributors and advisors, etc. |
[Enforcement Date: Sep. 25, 2021] Provisions relevant to financial product advisors in Article 57 (1), (3), and (4)