DAISHIN SECURITIES is claiming compensation from employees involved in the sale of Lime Funds, and the union is opposing this. The union held a press conference claiming that "the management is shifting the responsibility for the Lime Fund situation onto employees."
On the other hand, DAISHIN SECURITIES stated that it sought compensation to hold employees accountable for the minimum responsibilities related to incomplete sales.
The DAISHIN SECURITIES union's securities industry headquarters held a press conference on the morning of the 8th in front of its headquarters in Myeongdong, Seoul, to condemn and urge the cancelation of the compensation claim against the employees who sold the Lime Fund. The purpose is to condemn DAISHIN SECURITIES for claiming nearly 2 billion won in compensation from employees who sold Lime Funds.
Earlier, DAISHIN SECURITIES claimed a total of 1.8 billion won in compensation against 12 employees (including those who have resigned) from the Banpo WM Center in Seoul who sold Lime Funds through Shinwon Insurance at the end of last year.
Insurance refers to a product that allows a company to claim an employee's liability against the insurance company. The company receives an insurance payout from the insurance company, and the insurance company exercises its right to compensation against the employees to recover the payout.
The union argued that the current compensation claim is an unprecedented measure. Oh Byung-hwa, head of the DAISHIN SECURITIES branch, said, "There has been no case in any securities firm, including banks, where compensation has been claimed against employees for funds sold under company guidelines," adding, "The fundamental cause of the damage was the lack of oversight and management from financial authorities, and financial companies also failed in verifying financial products and internal controls."
Lee Seung-hyun, a representative of sales employees at the Gubanpo Center, stated, "The commission earned by employees from selling the Lime Fund is less than 0.1% of the sales amount," explaining, "The pressure from the company to increase the sales volume of the fund and make the sales commission a primary source of revenue led to the sale of a fund that wasn’t even profitable."
The union asserts that there is a procedural flaw in the compensation claim. According to this representative, for the reason of 'insurance accident' that DAISHIN SECURITIES applied for in order to claim insurance from the insurance company to be recognized, the process of first claiming insurance payments from the employees must be preceded. However, the employees explained that they received collection notices directly from the insurance company without prior notice from the company.
Regarding the controversy over the compensation claim, DAISHIN SECURITIES stated that it is not a matter of shifting responsibility onto employees but a minimal step to share responsibility. This is in line with the recent emphasis by financial authorities on individual responsibility for incomplete sales.
DAISHIN SECURITIES stated on the same day that "the claim toward the insurance is a minimal step to raise awareness of employees' incomplete sales and strengthen the sense of responsibility toward customers."
It also clarified that the economic burden imposed on employees through the insurance is also a minimal responsibility for incomplete sales.
According to DAISHIN SECURITIES, the 12 employees who sold Lime Funds did not follow internal control procedures and used definitive terms such as '100% collateral financing' without authorization, leading to incomplete sales. DAISHIN SECURITIES received institutional warnings and had its branches closed due to incomplete sales related to Lime Funds in December 2021.
대신증권에 따르면 라임펀드를 판매한 직원 12명은 내부 통제 절차를 따르지 않고 ‘담보금융 100%’ 등 단정적 용어를 무단으로 사용해 불완전판매를 한 바 있다. 대신증권은 2021년 12월 라임펀드 관련 불완전판매로 기관경고, 영업점 폐쇄 조치를 받았다.