Samsung Securities should face partial suspension -watchdog (updated)

Samsung Securities Co

21/06/2018 13:50

(Adds details, background)
    SEOUL, June 21 (Reuters) - South Korea's financial watchdog
said on Thursday that it recommended suspending some of Samsung
Securities'  016360.KS  operations for six months after a "fat
finger" trading error by the brokerage prompted a public outcry.
    One of South Korea's largest stock brokers, Samsung
Securities in April accidentally issued 2.8 billion shares to
employees - more than 30 times the number of its outstanding
shares and theoretically worth some $100 billion - some of which
were quickly sold off by workers.  urn:newsml:reuters.com:*:nL3N1RN1GV    
    The Financial Supervisory Service (FSS) said in a text to
reporters that it had called for partially suspending the
broker's services for new investors in a recommendation to the
Financial Services Commission (FSC), which makes the final
decision.
    After the reviewing the case, the country’s watchdog said it
advised that the firm's chief executive should be suspended from
his post. 
    The input error by Samsung Securities, an affiliate of the
country's top conglomerate Samsung Group, prompted a prosecutors
raid.
    The company promised to rebuild its internal control process
and set up a fund to support investors damaged by financial
accidents.  urn:newsml:reuters.com:*:nL3N1SE1Z6

 (Reporting by Haejin Choi and Yuna Park; editing by Adrian
Croft and Jason Neely)
 ((Haejin.Choi@thomsonreuters.com;))