Strengthening Investor Protection in High-Risk Overseas Products
Financial authorities are ramping up protection measures for individual investors in overseas derivatives and leveraged ETF/ETN markets. From December, individual investors will be required to complete pre-investment education and simulation trading before investing in high-risk products. Such measures are designed to keep individual investors from incurring significant losses due to indiscriminate investments. Recently, overseas derivatives trading volume has surged, yet the corresponding losses for individual investors have also increased, accentuating the need for investor protection.
The new regulations, jointly initiated by the Financial Supervisory Service (FSS) and the Korea Financial Investment Association, aim to foster a healthy investment culture and enhance risk awareness among investors. The FSS plans to provide comprehensive information through educational programs to prevent investors from being overly exposed to market volatility and to enable stable investment practices. This initiative is expected to make investors more prudent in their investment decisions. Central to this plan is the discouragement of excessive trend chasing or irrational investment behaviors.
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Mandatory Pre-Education for Investing in Overseas Derivatives and Leveraged ETFs Starting December - Kukmin DailyFrom December, individual investors must complete a certain number of hours of pre-education to invest in high-risk products like overseas exchange-traded derivatives and leveraged ETFs (Exchange-Traded Funds) and ETNs (Exchange-Traded Notes).
Financial Supervisory Service, "Increased Entry Barriers for Foreign Derivatives & Leverage ETFs"... Pre-education Mandatory from December - Metro NewspaperFrom December, individual investors looking to newly invest in high-risk exchange-traded products (ETPs) such as overseas listed derivatives, U.S. leverage exchange-traded funds (ETFs), and exchange-traded notes (ETNs) must complete pre-education and simulation trading. The Financial Supervisory Service announced on the 25th the details in the 'Foreign High-Risk Product Investment' policy.
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Mandatory Pre-Education for Overseas Derivative and Leverage ETF Trading: Implemented in December - Whitepaper[Whitepaper=Reporter Go Su-a] Individual investors aiming to trade overseas derivatives and leveraged ETPs (ETFs, ETNs) will be required to complete pre-education before placing orders. The Financial Supervisory Service and the Korea Financial Investment Association announced these investor protection measures on the 25th, and plan to implement them starting December. The regulation will apply to new entrants as well as existing holders making additional purchases after the implementation date. Derivatives require at least 1 hour of education and over 3 hours of simulated trading, while leverage ETPs require 1 hour of education. The education will be provided by the Korea Financial Investment Association (Korea Institute of Financial Investment) or securities and futures companies.
'Pre-Education Mandatory' to Invest in Overseas Derivatives and Leverage ETFs from December - SBS BizFrom this December, individual investors who want to invest in aggressive products such as overseas exchange-traded derivatives and leverage ETFs and ETNs must complete pre-education exceeding normal time and practice trading. The Financial Supervisory Service announced today (25th) that it has prepared measures to protect investors in high-risk overseas products in cooperation with the Korea Financial Investment Association. According to the Financial Supervisory Service, recently overseas derivatives…
Investors in Overseas Derivatives and Leveraged ETFs Also Required Pre-Education... FSS to Implement from December - Financial News(Seoul=News1) Reporter Kang Soo-ryun = The Financial Supervisory Service will require pre-education and mock trading courses for high-risk overseas derivative products to protect investors. The FSS announced on the 25th that 'investors in overseas derivatives and leveraged exchange-traded products (ETP, ETF, ETN)...
"Prevent Uninformed Investments"… Pre-Education Mandated for Overseas Derivatives, Leverage ETF, and ETN Investments - E-DailyRecently, as individual investors have increased their investments in overseas listed derivatives and leveraged Exchange Traded Funds (ETF) and Exchange Traded Notes (ETN), with growing concerns over potential losses, financial authorities have prepared measures to protect investors. This ensures that investors can invest in these products with sufficient knowledge and experience.
"You Might Lose Everything If Done Wrong, Attend a Class First"…You Can't Just Buy S&P500 3x ETF - Money TodayIndividual investors must attend a mandatory one-hour investment education session to purchase leveraged ETFs (Exchange Traded Funds) listed on overseas markets. For overseas derivatives, they must complete an additional three-hour simulated trading, along with the one-hour investment education, to be eligible to invest. On the 25th, the Financial Supervisory Service and the Korea Financial Investment Association announced these overseas derivatives and leveraged ETP (Exchange Traded Products) investor protection measures. ...