@article{ART001880201},
author={김희석},
title={A study of standards for disputes regarding suitability and the duty of explanation on transaction of derivatives},
journal={DONG-A LAW REVIEW},
issn={1225-3405},
year={2014},
number={63},
pages={121-158}
TY - JOUR
AU - 김희석
TI - A study of standards for disputes regarding suitability and the duty of explanation on transaction of derivatives
JO - DONG-A LAW REVIEW
PY - 2014
VL - null
IS - 63
PB - The Institute for Legal Studies Dong-A University
SP - 121
EP - 158
SN - 1225-3405
AB - This study is about standards for disputes, suitability and a duty of explanation of derivatives transactions, according to Korean cases of derivatives transactions.
The financial crisis in the United State of America made the exchange rate of Won/US dollar high and the companies buying KIKO derivatives (knock-in and knock-out forwards) lost a lot of money in these tradings. Disputes of derivatives transactions like KIKO cases are increasing by the expansion of financial markets. Investors are responsible for trading of derivatives when they have made their own decisions whether to enter into a deal or not to. But if the investors lose in their derivatives transactions, they may sue the financial company selling those financial products. Main issues in these disputes are the violation of principle of suitability and a duty to explain, etc, and I reviewed standards for disputes of derivatives transactionsThere are several standards for suitability in derivatives transactions in disputes. First, the structures of OTC derivatives shall be fair between investors and financial companies. Second, suitability shall apply to the investment strategy. Third, the valuation of derivatives shall be fair and correct. If the valuation of derivatives is not fair or the difference of valuation of derivatives is vast, it is a violation of suitability.
Also, there are several standards for the duty of explanation of financial products like derivatives in disputes. First, each financial investment business entity shall explain the essential factors of derivatives, and receive written confirmation that the investors understand the explanation of derivatives. Second, the business margin is not included in the essential factors to explain. Third, in case that unfair dealing linked underlying assets could be involved, so that, conditions for early termination, termination of contracts, ets, are explained exactly and understandable. Finally, it is not good to explain only good views on the products. It shall be both good and bad points in derivatives.
KW - Derivatives;Principle of suitability;Duty of explanation;Financial investment services and capital markets act;Investors protection;Financial investment products;KIKO OTC derivatives.
DO -
UR -
ER -
김희석. (2014). A study of standards for disputes regarding suitability and the duty of explanation on transaction of derivatives. DONG-A LAW REVIEW, 63, 121-158.
김희석. 2014, "A study of standards for disputes regarding suitability and the duty of explanation on transaction of derivatives", DONG-A LAW REVIEW, no.63, pp.121-158.
김희석 "A study of standards for disputes regarding suitability and the duty of explanation on transaction of derivatives" DONG-A LAW REVIEW 63 pp.121-158 (2014) : 121.
김희석. A study of standards for disputes regarding suitability and the duty of explanation on transaction of derivatives. 2014; 63 : 121-158.
김희석. "A study of standards for disputes regarding suitability and the duty of explanation on transaction of derivatives" DONG-A LAW REVIEW no.63(2014) : 121-158.
김희석. A study of standards for disputes regarding suitability and the duty of explanation on transaction of derivatives. DONG-A LAW REVIEW, 63, 121-158.
김희석. A study of standards for disputes regarding suitability and the duty of explanation on transaction of derivatives. DONG-A LAW REVIEW. 2014; 63 121-158.
김희석. A study of standards for disputes regarding suitability and the duty of explanation on transaction of derivatives. 2014; 63 : 121-158.
김희석. "A study of standards for disputes regarding suitability and the duty of explanation on transaction of derivatives" DONG-A LAW REVIEW no.63(2014) : 121-158.
