South Korea proposes penalties related to analyst reports from UBS Warburg and Merrill Lynch
boston.com
By Associated Press, 8/13/2002 13:34
SEOUL, South Korea (AP) South Korea's financial watchdog proposed penalties against local branches of UBS Warburg and Merrill Lynch on Tuesday for allegedly giving some investors an early look at research reports.
After monthlong investigations, the Financial Supervisory Service said it will issue a ''severe disciplinary warning'' against British securities firm UBS Warburg's Seoul office for ''unlawful business conduct,'' including leaking analyst reports on such companies as Samsung Electronics Co.
The proposal is subject to approval by the Financial Supervisory Commission, which is the financial watchdog's decision-making body. The commission will make its decision Friday.
A firm that had received a ''severe disciplinary warning'' may have its business suspended if such a violation is repeated, the agency said in a news release.
The Seoul office of U.S. securities firm Merrill Lynch will receive a ''disciplinary warning'' a penalty one notch lower than that imposed on UBS Warburg for similar charges, the release said.
Fifteen UBS Warburg staffers and six at Merrill Lynch will separately receive penalties including suspension from work and salary cuts, it said.
''We note that it was unintentional, and accept the penalties. We regret the incident,'' said Kim Hye-kyong, a spokesman at UBS Warburg's Seoul office.
''Merrill Lynch is cooperating fully with the Financial Supervisory Service on this matter,'' said Joshua Goldman-Brown, a Merrill Lynch spokesman in Hong Kong. |
