Regulatory crackdown puts Korea autocalls in deep freeze
Mis-selling fears see distributors pull back, leading to 40% issuance fall in a month
Issuance of equity index-linked autocallable notes in South Korea has fallen more than 40% after a mis-selling probe prompted several distributors to freeze sales of the products.
In March, an investigation by Korea’s Financial Supervisory Service (FSS) concluded that distributor banks had mis-sold popular autocallable structures linked to the worst performer of three underlying equity indexes. South Korea’s retail investors have been facing mounting losses on the products, which included the
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