The process, which previously took about an hour when enrolling in investment-type products at banks or securities firms, is expected to be reduced to 30–40 minutes. The number of handwritten signatures required will also drop from the current level to between three and six times. Financial authorities have decided to maintain core explanations for consumer protection while drastically reducing formal procedures.
The Financial Supervisory Service announced on the 3rd that it has prepared a plan titled "Rationalization and Simplification of Procedures for Enrolling in Investment-Type Products" in collaboration with the Korea Financial Investment Association and the Bankers Association.
As financial product sales regulations have been strengthened, concerns were raised that financial institutions are focusing more on fulfilling formal explanatory obligations to minimize future legal liability rather than enhancing consumer understanding. In particular, at bank or securities firm branches, consumers had to complete numerous documents to enroll in trusts, funds, and other products, taking about one hour.
The Financial Supervisory Service will first reduce the number of forms required for enrolling in investment-type products from approximately 17 types currently to 10 types. Forms with similar purposes for preparation and delivery will be merged. Transaction application forms and investor information verification forms essential for contract execution, along with contracts and enrollment applications, will be classified as basic documents. The agency recommends abolishing documents such as the Specific Monetary Trust Consultation Confirmation Form that are not directly related to contract execution or legal obligations.
The number of handwritten signatures will also be reduced from around 17 times currently to between three and six times. Under this approach, if a consumer signs once on basic documents, no separate signature will be required for supplementary documents they have already reviewed in advance. Procedures requiring repeated signatures for each item within the same document will also be minimized.
The so-called "additional writing," where consumers must personally write out investment risks and other details, will also be simplified. The current average length of about 163 characters will be reduced to around 51 characters, with content focused on core keywords that consumers must verify, such as investment risks.
It will become possible to complete investor information verification procedures online before visiting a branch. Through visit reservation systems, suitability assessments can be completed in advance, allowing branches to immediately proceed with follow-up procedures such as result notifications and account opening.
Product explanations will be restructured around core risks. Important content for investment decisions, such as possible disadvantages or differences from similar products, will be placed at the beginning of explanation documents. Improvements will allow consumers enrolling in multiple products simultaneously to receive a single explanation of common items rather than repeating them for each product.
The Financial Supervisory Service aims to reduce the time required for new investment-type product enrollments from approximately one hour currently to 30–40 minutes, a maximum reduction of 50%. The plan is to implement these measures by financial institutions starting in 2027, following revisions to industry self-regulation, development of financial institution computer systems, and amendments to internal regulations.
in FINANCE
