The financial authorities plan to reduce the time required to enroll in investment products, such as funds and trusts, from about one hour to 30-40 minutes at bank and securities company branches. This will be achieved by streamlining enrollment documents and signatures, as well as simplifying the investor information verification process.
On September 3, the Financial Supervisory Service announced a plan for the 'rationalization and simplification of investment product enrollment procedures' in collaboration with the Korea Financial Investment Association and the Korea Banks Association.
First, the number of documents required for investment product enrollment will be reduced from approximately 17 to around 10. The basic documents will include the account opening application, investor information verification form, contract, enrollment application, and a confirmation of key details, with similar-purpose documents consolidated.
The number of required signatures will also be reduced from about 17 to between 3 and 6. A single signature on the basic documents will suffice for previously verified supplementary documents, and the process of signing the same document multiple times will be minimized.
The 'write-in' text that consumers must fill out will be reduced from an average of about 163 characters to around 51 characters. This will focus on key information such as the possibility of principal loss and investment risks, while recommending the elimination of unnecessary documents that are not directly related to contract signing or legal obligations.
Investors will be able to verify their information through non-face-to-face channels, such as mobile apps, before visiting the branch. If multiple investment products are enrolled at the same time with similar investment purposes and durations, related information can be submitted only once.
The product descriptions will be revised to focus on key factors that influence investment decisions, such as the possibility of principal loss. When enrolling in multiple products simultaneously, repetitive explanations of common aspects will also be omitted.
The Financial Supervisory Service aims to reduce the time for enrolling in new investment products from the current one hour to 30-40 minutes, potentially cutting enrollment documents by 41%, signatures by up to 82%, and write-in text by 69%. The improvements are expected to be implemented by financial companies starting in 2027 after necessary system development and internal regulation adjustments.
* This article has been translated by AI.
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