ACT ON THE PROTECTION OF FINANCIAL CONSUMERS
CHAPTER VIII PENALTY PROVISIONS
조문단위인쇄
| Article 69 (Administrative Fines) |
| (1) | Any of the following persons shall be subject to an administrative fine not exceeding 100 million won: |
| 1. | A person who fails to prepare internal control standards, in violation of Article 16 (2); |
| 2. | A person who fails to explain an important matter, in violation of Article 19 (1), or who fails to deliver a written explanation or obtain confirmation, in violation of paragraph (2) of that Article; |
| 3. | A person who commits an act falling under any subparagraph of Article 20 (1); |
| 4. | A person who commits an act falling under any subparagraph of Article 21; |
| 5. | A person who makes an advertisement of a financial product or other matter, in violation of Article 22 (1), (3), or (4); |
| 6. | Where a financial product distribution agent or broker who is engaged by another financial product distribution agent or broker as an agent or a broker for the conclusion of a contract for a financial product or other relevant transactions commits any of the following acts, the latter financial product distribution agent or broker who engages the former financial product distribution agent or broker as an agent or broker for such transactions: Provided, That the financial product distribution agents and brokers who engaged other persons as brokers or agents but have not neglected exercising due care and supervising such persons with respect to the transactions concerned in order to prevent their violations shall be excluded: |
| (a) | Where a financial product distribution agent or broker fails to explain an important matter, in violation of Article 19 (1), or fails to deliver a written explanation or obtain confirmation, in violation of paragraph (2) of that Article; |
| (b) | Where a financial product distribution agent or broker commits an act falling under any subparagraph of Article 20 (1); |
| (c) | Where a financial product distribution agent or broker commits an act falling under any subparagraph of Article 21; |
| (d) | Where a financial product distribution agent or broker makes an advertisement of a financial product or other matter, in violation of Article 22 (3) or (4); |
| 7. | A person who fails to deliver contract documents to a financial consumer, in violation of Article 23 (1); |
| 8. | Where a financial product distribution agent or broker who is engaged by a financial product direct seller as an agent or a broker for the conclusion of a contract for a financial product or other relevant transactions commits an act falling under Article 25 (1) 2, the financial product direct seller who engages the financial product distribution agent or broker as an agent or broker for such transactions: Provided, That the financial product direct sellers who engaged other persons as brokers or agents but have not neglected exercising due care and supervising such persons with respect to the transactions concerned in order to prevent their violations: |
| 9. | A person who fails to inform financial consumers of the matters referred to in any subparagraph of Article 27 (3) or who fails to post a mark or present the relevant certificate to financial consumers, in violation of that paragraph; |
| 10. | A person who uses characters with the meaning of ‘independent’ in a name or an advertisement, in violation of Article 27 (4); |
| 11. | A person who commits an act falling under any subparagraph of Article 27 (5); |
| 12. | A person who fails to record data or maintain and manage data by types, in violation of Article 28 (1); |
| 13. | A person who refuses, obstructs, or evades an inspection conducted under Article 50 (1), without good cause. |
| (2) | Any of the following persons shall be subject to an administrative fine not exceeding 30 million won: |
| 1. | A person who fails to identify information, to obtain confirmation, to maintain and manage information, or to provide the confirmed information without delay, in violation of Article 17 (2); |
| 2. | A person who solicits the conclusion of a contract, in violation of Article 17 (3); |
| 3. | A person who fails to identify information, in violation of Article 18 (1); |
| 4. | A person who fails to give notice of the fact that the financial product concerned is not appropriate or to obtain confirmation, in violation of Article 18 (2); |
| 5. | A person who commits an act falling under any subparagraph of Article 25 (1); |
| 6. | A person who demands or accepts money, goods, or any other economic benefit, in violation of Article 25 (2); |
| 7. | A person who fails to notify a financial consumer of the information falling under any subparagraph of Article 26 (1), in violation of that paragraph, or a person who fails to post a mark or present a certificate, in violation of paragraph (2) of that Article. |
| (3) | Any person who fails to report a change in the requirements for registration, in violation of Article 48 (3), shall be subject to an administrative fine not exceeding 10 million won. |
| (4) | The administrative fines under paragraphs (1) through (3) shall be imposed and collected by the Financial Services Commission in accordance with Presidential Decree. |
[Enforcement Date: Sep. 25, 2021] Provisions relevant to financial product advisors in Article 69 (1) 1, 2, 3, 4, 5, 7, 9, 10, 11, 12, and 13 and Article 69 (2) 1 and 2, and (3)