|
|
|
|
|
Newsletter | November 2015, Issue 3
|
|
|
|
|
|
|
SECURITIES
|
|
|
|
Financial Investigators May Now Hold Judicial Police Powers
|
|
|
|
Effective August 11, 2015, Korean financial regulatory officials may be appointed as special judicial police officers during the course of an investigation for unfair trading in the capital markets. They are now allowed to execute compulsory investigatory functions, including search and seizure, and making an arrest. Previously, since they did not have investigative authority, the financial officials had to refer such cases to the police or to the prosecutors.
|
|
|
|
This change reflects lawmakers’ recognition that complex financial transactions and investigations are better suited for those with actual field experience. Experts expect such a change to have a substantial impact on the audit and investigation practices of the Financial Services Commission (“FSC”) and the Financial Supervisory Service (“FSS”).
|
|
|
|
On July 24, 2015, the National Assembly passed an amendment to the ″Act on Persons Performing the Duties of Judicial Police Officer and the Scope of Their Duties.″ This grants special investigatory powers to the FSC and FSS investigators-in-charge. Under the revised law, the FSC chairman can request that a financial official be designated as a special judicial police officer. The chief prosecutor of the corresponding district is to review the FSC Chairman’s request, and make a final decision. The specially appointed officials may then obtain a court warrant to search and seize, and make arrests.
|
|
|
|
Back to Main Page
|
|
|
|
|
|
If you have any questions regarding this article, please contact below:
|
|
|
|
|
|
|
|
For more information, please visit our website:
|
|
|
|
|
|
|
|