Financial Supervisory Service to Inspect ETF Management by Major Asset Management Companies
The Financial Supervisory Service (FSS) plans to inspect major asset management firms, including Samsung Asset Management and Mirae Asset Global Investments, from next month concerning their management of Exchange-Traded Funds (ETFs). This inspection follows recent controversies in the market and aims to assess risks in ETF management, transparency in fee structures, and the heated competitive fee reduction among asset management firms.
The on-site inspections will comprehensively check whether asset management companies are properly managing ETF product structures and synthetic ETF collaterals, and if they have adequate responses to fund price errors. Earlier this month, the FSS requested extensive data submissions from asset management firms, considered a preliminary measure for this inspection.
Industry insiders expect this inspection to curb excessive competition among asset management firms and to enhance the transparency and reliability of these companies. Simultaneously, any issues uncovered during the inspections are expected to contribute to investor protection and market stability in the long run.
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