South Korea’s financial regulator has completed an inspection of Goldman Sachs Group Inc. (GS:US)’s local operations and is now analyzing the results.
The Financial Supervisory Service hasn’t decided what actions will be taken as a result of the probe, Cho Gook Hwan, director-general at the FSS said by phone. The Korea Economic Daily earlier today reported the regulator plans to ask local prosecutors to investigate the U.S. firm’s Hong Kong unit, alleging the company offered investments to Korean clients without a license, citing unidentified FSS officials.
The regulator is reviewing derivative sales and other operations at three foreign brokerages for compliance with South Korean rules, it said last month. The FSS began reviewing Credit Suisse Group AG, Goldman Sachs and Royal Bank of Scotland Plc’s local units in late August, MoneyToday reported at the time, citing unidentified financial industry officials.
Goldman Sachs is “cooperating fully with regulator’s ongoing inspection and is unaware of any conclusion stemming from it,” Christoper Jun, a spokesman for the Wall Street firm, said in an e-mailed statement.
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