Reasons for Proposal
The current Act provides that in cases where there is a change in investment operation personnel, deferment or resumption of repurchase, or an occurrence of non-performing assets as prescribed by Presidential Decree, a collective investment business entity affiliated with investment trust or undisclosed investment association shall publicly disclose the fact without delay.
However, the regulations currently in force require that frequent disclosures should follow all three procedures such as disclosure on the Internet homepage, sending emails to investors, and posting at the business offices including the head office/branch of a collective investment business entity, an investment trader or an investment broker who sold collective investment securities. It has been pointed out, however, that public disclosure to investors only by email is overly limiting the scope of disclosure, and posting at business offices such as the head office is less effective.
Accordingly, the Act aims to make public disclosures to investors possible using text messages as well as emails, while allowing the method of posting at the business offices including the head office/branch of a collective investment business entity, an investment trader or an investment broker who sold collective investment securities to be used as an additional method of public disclosure rather than an essential method of disclosure, thereby improving the system of frequent public disclosure (Article 89, paragraph 2).
Frequent public disclosure (Article 89)