Financial Supervisory Service to Inspect Internal Controls of 30 Private Equity Firms

 
금융감독원이 국내 사모펀드(PEF) 운용사 30곳을 대상으로 내부통제 실태 점검에 나선다. 내부통제 규정 마련 여부뿐 아니라 실제 운영 과정에서 준법감시와 이해상충 방지 체계가 제대로 작동하는지를 집중적으로 살펴볼 계획이다.
 
According to the Financial Supervisory Service (FSS), starting this month, it will conduct inspections of the internal control operations of approximately 30 registered private equity fund (PEF) management firms in South Korea. These firms account for about 46.5% of the total commitments made by all domestic PEF management companies.
 
The inspections aim to verify the implementation of the 'Standard Internal Control Guidelines for Institutional Private Equity Fund General Partners (GPs)' announced in March.
 
In January, the FSS urged CEOs of PEF management firms to prioritize ethical management and social responsibility. In March, it held a workshop to introduce the standard internal control guidelines.
 
The selected firms for inspection will primarily include major GPs, but smaller firms and those identified as needing inspection during the supervisory process will also be included.
 
The FSS plans to conduct a written review by collecting internal control-related regulations and compliance records from all targeted firms. For some larger GPs, it will also conduct on-site inspections and interviews with responsible personnel.
 
The inspection will focus on five key areas: internal control organization and system, compliance officer operations, information exchange management, conflict of interest assessments, and management of employee transactions in financial investment products.
 
The FSS aims to ensure that the internal control systems are functioning effectively, rather than merely existing as formal regulations. For instance, it will assess whether appointed compliance officers can operate independently in terms of experience, position, and authority.
 
The review will also examine the systems in place to prevent information exchange between departments, measures to prevent the leakage of undisclosed information, and procedures for responding to conflicts of interest. Additionally, it will evaluate the reporting and compliance training status of employees regarding financial investment transactions.
 
Based on the inspection results, the FSS plans to share best practices and areas for improvement with the industry and provide guidance for each company. Any necessary improvements identified during the inspection will also be reflected in future standard internal control guidelines.
 
Furthermore, the FSS intends to expand the scope of future inspections and implement differentiated supervision and inspections based on the internal control levels of each management firm.
 
Through this inspection, the FSS hopes to prevent the recurrence of incidents that have caused social issues due to failures in internal controls and to enhance the self-regulatory capabilities of the PEF industry.