FSC fines Goldman Sachs affiliate for naked short selling
12 April 2019 Seoul
Image: Shutterstock
South Korea’s financial authority, The Securities & Futures Commission (SFC), has fined a Goldman Sachs affiliate 72 million won ($63,000) for naked short selling, it has been confirmed.
This marks the third case of the US-based investment bank’s affiliates facing financial sanctions in Seoul.
It was also confirmed that the fined company is said to have cited “human error” as the reason for its disputed tactic, which was not taken into account in the sanctioning decision.
Meanwhile, earlier this year, the SFC of the Financial Services Commission (FSC) judged that Singapore-based Goldman Sachs India Investments conducted short selling without securing underlying assets.
Additionally, the FSC’s investigative body handed down a fine of 7.5 billion Won on Goldman Sachs International in November last year for a case of naked short selling.
Another affiliate of the investment banking group had been caught for similar violations in 2015 but was issued only a warning.
This marks the third case of the US-based investment bank’s affiliates facing financial sanctions in Seoul.
It was also confirmed that the fined company is said to have cited “human error” as the reason for its disputed tactic, which was not taken into account in the sanctioning decision.
Meanwhile, earlier this year, the SFC of the Financial Services Commission (FSC) judged that Singapore-based Goldman Sachs India Investments conducted short selling without securing underlying assets.
Additionally, the FSC’s investigative body handed down a fine of 7.5 billion Won on Goldman Sachs International in November last year for a case of naked short selling.
Another affiliate of the investment banking group had been caught for similar violations in 2015 but was issued only a warning.
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