Fund management staff cannot work for 5 years… Preparation of ‘internal control improvement plan’ for women’s full-time business

/Photo provided by Financial Supervisory Service

In the future, internal control standards for credit-specialized financial companies, including credit card companies, will be strengthened. The responsibilities of the board of directors, CEO, etc. are specified, and employees in charge of fund management should not work in one department for a long period of time. Control measures in credit services such as PF (project financing) have also been established. The selection and management process for affiliated service providers also becomes more complicated.

The Financial Supervisory Service announced on the 25th that it has prepared and completed the enactment and revision of a ‘plan to improve internal control in the industry.’ Last July, a breach of trust occurred in which two Lotte Card employees conspired with the CEO of a partner company to sign a 10.5 billion won partnership agreement. After the accident, the financial authorities and the credit association worked together to consider internal control measures and came up with this improvement plan.

First, the ‘Financial Accident Prevention Guidelines Standard Draft’ was prepared. The established guidelines stipulate high-risk work that requires separation of duties, such as fund management, from full-time work. When changing the division of work, a strengthened approval process of three or more stages was applied. Fund management employees must not work in the same department for more than five consecutive years. If it is unavoidable for human resources management, the approval process must be completed by the human resources executive. A command leave system will be introduced for high-risk workers and employees who have worked in the same department for more than 5 years.

According to the guidelines, when conducting a PF loan business through a real estate land trust, the loan must be remitted only to the initially registered trust company management account or customer account. When remitting a loan, the borrower must be notified of the remittance details via text message or phone. The appropriateness of changes to withdrawal information, such as designated accounts and user seals, is also regularly inspected.

Control of credit operations will also be strengthened. When handling loans in the future, supporting documents must be materials that can be verified for authenticity. When executing (remitting) a loan, it is necessary to check whether there have been any changes in the borrower’s loan history since the time of loan application.

Standard internal control standards for all industries are also established. The authority and roles of the board of directors, CEO, internal control committee, and compliance officer were defined. The grounds for processing such as appointment and dismissal of compliance officers, status, term of office, guarantee of independence, and correction/improvement in case of violation of internal control standards are specified. In addition, full-time businesses must comply with the following measures: △ periodic management of the status of concurrent positions of executives and employees, △ prevention of money laundering and public intimidation financing activities, and △ management of work that may cause conflicts of interest.

Guidelines for improving used car finance sales practices will also be revised. In the future, when loan money is deposited with a third party, the business must inform customers of the main details of the loan through text messages, etc. In principle, the loan amount must be deposited into the customer’s own account, but as an exception, it can be deposited into the account of a used car dealer, etc. When executing a loan, you must make a phone call (Happy Call) with the customer or check the vehicle photo submitted by the customer.

The Financial Supervisory Service established industry standard regulations to strengthen the selection and management of affiliated service companies. This is to prevent consumer damage due to the suspension or closure of affiliated companies. In the future, when selecting an affiliate service company in the industry, support departments such as the General Affairs Department and the Compliance Support Department must reach an agreement and proceed with approval. Basic qualification criteria for affiliated companies (credit rating, experience, sales, etc.) are prepared in advance and qualification criteria evaluation is also conducted. When concluding a contract, you must check the soundness and reputation of the affiliated company. Even after signing a contract, you must check whether the affiliated service company is operating normally.

The Financial Supervisory Service said, “Each female company plans to develop a computer system related to the implementation of best practices and revise internal regulations as soon as possible,” and added, “We will strengthen internal control training through the Credit Finance Association and inspect the reflection and implementation of internal regulations for each female company.”

[저작권자 @머니투데이, 무단전재 및 재배포 금지]