1. Reasons for Amendment
The Amendment prescribes matters delegated to the subordinate regulations by the Act in accordance with the amended Asset-backed Securitization Act and makes improvements that have been highlighted during system operation.
2. Major Provisions
A. Prescribe the scope of originators (Article 2 of the Decree, Article 2 of the Supervision Regulations)
- Prescribe the scope of originators including the credit business division of the National Agricultural/Fisheries/Forestry Cooperatives Federation and the cooperatives/regional credit cooperatives of credit unions, forestry cooperatives, and community credit cooperatives
B. Exemption from change registration (Article 2-2 of the Decree, Article 6 of the Supervision Regulations)
- Prescribe that any minor rephrasing, etc. shall be exempt from change registration and shall be reported as a correction
C. Administrator eligibility requirements (Article 5-2 of the Decree, Article 16 of the Supervision Regulations)
- Prescribe eligibility requirements for administrators
D. Disclosure of the issuance history of asset-backed securities, etc. (Article 5-3 of the Decree, Article 18-2 of the Supervision Regulations)
- Prescribe additional information to be disclosed by special purpose companies, etc. in relation to the issuance of and changes to asset-backed securities, and prescribe that such information shall be published via the Korea Securities Depository website
E. Compulsory retention of asset-backed securities (Article 5-4 of the Decree, Article 18-3 of the Supervision Regulations)
- Prescribe additional compulsory retention entities, stipulate that the compulsory retention ratio shall be 5/100, make an exemption for asset-backed securities, etc. acquired by the state, local governments, public institutions, etc., and prescribe the retention method
F. Measures taken in accordance with investigation results, entrusting of affairs (Article 5-5 and Article 5-8 of the Decree, Article 7 and Article 23 of the Supervision Regulations)
- Allow warnings, cautions, prosecution, notification of investigation agencies, and other measures to be taken against violations of the Act, and entrust the Governor of the Financial Supervisory Service with power over registrations/acceptances and investigations in relation to asset-backed securities
G. Reporting by special purpose companies, etc. (Article 5-6 of the Decree, Article 19 of the Supervision Regulations)
- Require special purpose companies, etc. to file a report in the event of dissolution, insolvency, etc.
H. Prescribe provisions concerning penalty surcharges and administrative fines (Article 5-7 and Table of the Decree, Article 23-4, Article 23-5, Table 1, and Table 2 of the Supervision Regulations)
- Prescribe specific criteria and entrusted power concerning penalty surcharges (in relation to compulsory retention) and administrative fines (issuance history disclosure, reporting obligation violations, etc.)
