March 28, 2024 (NO COMMENTS)

Mis-selling fears see distributors pull back, leading to 40% fall in issuance in a month

Issuance of equity index-linked autocallable notes in South Korea has fallen more than 40% after a mis-selling probe prompted several distributors to freeze sales of the products. In March, an investigation by Korea’s Financial Supervisory Service (FSS) concluded that distributor banks had mis-sold popular autocallable structures linked to the worst performer of three underlying equity indexes. South Korea’s retail investors have been facing mounting losses on the products, which included the