Daishin Securities is asked to compensate investors up to 80% of losses after it missold funds managed by Lime Asset Management.
South Korea’s FSS (Financial Supervisory Service) has ordered Daishin Securities to compensate an investor up to 80 percent of losses due to the brokerage’s misselling of funds that were managed by Lime Asset Management.
If Daishin Securities accepts the FSS recommendation, it will have to compensate about KRW 183 billion (USD 159 million) worth of customer losses.
Lime Asset was once Korea’s biggest hedge fund, but it froze withdrawals from its funds in 2019 citing a cash crunch. The firm has been under investigation since July 2020 for covering up hedge fund losses, inflating investment returns and operating a Ponzi scheme.
Fund redemptions have been suspended worth an estimated KRW 1.6 trillion. A total of 723 dispute settlement cases were reportedly registered with the FSS over…