[Background]
1. The investment and operation of real estate investment company assets are mostly entrusted to and performed by Asset Management Companies, while the advisory and appraisal tasks of real estate investment companies are mostly entrusted to and performed by Real Estate Investment Advisory Companies.
2. Under the current Real Estate Investment Company Act (hereinafter referred to as 'the Act'), certain illegal acts are subject to penalties imposed on the Asset Management Company. However, the Regulations on Inspections of Real Estate Investment Companies, etc. (hereinafter referred to as 'Inspection Regulations') only prescribe warnings and cautions for the Real Estate Investment Company, which causes controversy in interpretation and results in a mismatch between the violating entity and the target of the warning/caution.
3. Furthermore, in the case of Asset Management Companies and Advisory Companies, there is a need to reorganize the regulatory framework due to the inadequate legal basis (such as warnings/cautions) for reducing sanctions even for minor violations.
[Main Points]
Expanding the scope of entities subject to warnings/cautions—currently limited to Real Estate Investment Companies—to include Real Estate Investment Companies, etc. (including Asset Management Companies and Real Estate Investment Advisory Companies).
