Posted June. 18, 2005 04:32,
Starting the second half of this year, the government will introduce a fund sale recommendation system which authorizes individuals such as insurance planners to sell funds to investors. A fund supermarket, a specialized fund sales broker, will also start operation next year in which people can select from a variety of funds.
Also, not only asset management firms but also individuals will be allowed to establish small-size movie and cultural product funds which can invest in many cultural sectors at the same time.
The government convened a policy meeting on the morning of June 17 at the Central Government Complex in Sejong-ro, Seoul. At the meeting presided over by Han Duck-soo, deputy prime minister and minister of Finance and Economy, officials concluded plans on the deregulation of the asset management sector and decided to implement the plans in phase starting the second half of this year.
Under the plans, the government is expected to introduce specialized fund sales agents that independently arrange, broker and recommend fund sales, and push ahead with the revision of the asset management law the first half of next year.
If the revised bill is approved, funds sales experts will be allowed to break free from securities firms, banks, and insurance companies and set up a specialized fund sales brokerage to offer a variety of funds to investors.
Furthermore, it is also planning to entitle anyone to establish and manage small-size private equity funds (PEFs) worth one to two billion won.
Lim Young-rok, director-general of the Financial Policy Group of the ministry, said, We expect a large number of small-sized film funds and culture funds, adding, Unlike current funds which are dissolved after investing in particular movies, these small-size film funds will continue to make investments in various movies.
As part of an effort to encourage the establishment of PEFs, the government has also announced its decision to slash the minimum capital requirement for establishing a PEF from the current two billion won to one billion won for individuals, and from five billion won to two billion won for corporations.