1. Reasons for Amendment

The Act on the Protection of Financial Consumers was amended to require financial product distributors and advisors who intend to sell financial products by door-to-door sales or telemarketing to prepare a list of door-to-door salespersons, etc. and verify their identity. Accordingly, this Amendment makes the necessary amendments including matters that have been delegated.

2. Major Provisions

A. Matters to be included in the list of door-to-door sales and telemarketing executives (Article 10-2 (1) newly inserted)

Prescribe that where a financial product distributor or advisor prepares a list of door-to-door sales and telemarketing executives, the list shall include such information as their name, affiliation, and telephone number.

B. Verify the identity of door-to-door sales and telemarketing executives via the website (Article 10-2 (2) newly inserted)

Prescribe that when a financial product distributor or advisor operates a website, financial consumers may verify the identity of door-to-door salespersons, etc. via the website.

C. Additional notification in writing, etc. of information on do-not-contact requests when such information is conveyed verbally (Article 16-2 (1) newly inserted)

Prescribe that when a consumer has been verbally notified of the fact that he or she may opt out of door-to-door solicitation and telemarketing calls from financial product distributors or advisors, the consumer shall also be notified in writing or by email or text message, etc.

D. Address do-not-contact requests within 1 month (Article 16-2 (2) newly inserted)

Require financial product distributors and advisors to honor do-not-contact requests from ordinary financial consumers within 1 month.

E. Prepare a compliance system for do-not-contact requests (Article 16-2 (3) newly inserted)

Allow financial product distributors and advisors to establish a system using websites, wired and wireless communication, written documents, etc. to honor any do-not-contact requests from ordinary financial consumers.

F. Prevent burdens on consumers when making do-not-contact requests (Article 16-2 (4) newly inserted)

Require measures such as email or toll free calls when establishing a do-not-contact request compliance system.

G. Prescribe standards on institutional and employee measures (subparagraphs 1-2, 11-2, and 11-3 of attached Table 1)

Prescribe standards on institutional and employee measures in accordance with the amended Act on the Protection of Financial Consumers.

H. Prescribe individual standards on administrative fines (items (b), (j), (k), and (w) of attached Table 4)

Prescribe individual standards on administrative fines in accordance with the amended Act on the Protection of Financial Consumers.