Korea autocallables under threat from draft rules

Autocallable volumes could suffer as mis-selling fallout spreads to equity-linked structures

Do-Not-Enter---Korea's-regulators-to-restrict-sale-of-high-risk-products

South Korea’s structured products market faces disruption over a mooted rule change that could slash volumes of equity autocallables by a predicted 30–40%.

Dealers say local regulators are planning to ban the sale of autocallables in trust format and force issuers to repackage the instruments as funds, following a mis-selling scandal that caused heavy losses for retail investors in rates-linked products.

Such a move would hit revenues for Korea’s securities houses and private banks, which are

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

To continue reading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: