[Alpha Biz= Paul Lee] Daishin Securities’ Japanese subsidiary has received a managerial caution notice from the Financial Supervisory Service (FSS) of Korea after failing to engage in investment advisory activities despite having obtained a license.



According to financial industry sources on June 18, the FSS issued a managerial advisory following a special inspection conducted last year. The FSS stated that the subsidiary should actively pursue operations under its investment advisory license, which is equivalent to Korea’s “investment advisory business” under the Capital Markets Act.



Under Japan’s Financial Instruments and Exchange Act—the counterpart to Korea’s Capital Markets Act—licensed investment advisors must begin operations within three months of registration and are not permitted to suspend business for more than three months.



Daishin Securities established its local subsidiary in Tokyo in 2020 and registered as an investment advisor in December 2022. However, as of the conclusion of the FSS inspection, the subsidiary had yet to commence any advisory business activities.



According to Japanese regulations, maintaining a valid registration requires the license holder to continuously engage in relevant business operations. The FSS has instructed the subsidiary to report its corrective measures within six months.

 

 

 

[ⓒ 알파경제. 무단전재-재배포 금지]