1. Reasons for Amendment

These changes aim to complement shortcomings that have emerged in the operation of the system so far, such as making it compulsory for managing underwriters to check the ability to pay for shares to prevent bogus subscriptions.

2. Major Provisions

A. Internal control standards for the consignment of derivative-linked securities sales business (Article 2-24)

Allow the consignment of sales of derivative-linked securities, but supplement the internal control standards to reflect matters necessary for investor protection.

B. Lower the credit risk value of carbon credits (Article 3-20)

Set the credit risk value of carbon credits at 18%, the same as for financial products related to general products.

C. Managing underwriters’ obligation to confirm the ability to pay for shares in the event of an initial public offering (IPO) (Article 4-19)

Prevent bogus subscriptions by requiring the managing underwriter to verify that participants in demand forecasting are actually able to pay for the shares they subscribed for prior to the time of the IPO.

D. Clarify the duty to explain the Depositor Protection Act (Article 4-44)

Although investors’ deposits are subject to protection under the Depositor Protection Act, they are explained as not subject to the protection. The amendment makes it clear.

E. Reorganize matters subject to deliberations by the Securities and Futures Commission (Article 9-3)

Have the Securities and Futures Commission deliberate on the imposition of administrative fines and penalty surcharges for violations of the Act on the Protection of Financial Consumers regarding financial investment products, etc.

F. Alleviate the major shareholder requirements for business transfer approval when changing the organizational form of a foreign financial investment business entity (Attached Table 3 No. 3)

Alleviate major shareholder requirements even when approving a business transfer due to a change in the organizational form of a foreign financial investment business entity.