South Koreas New Product Approval (NPA) bill that will
force banks to seek approval before selling new types of
over-the-counter (OTC) derivatives has passed through the
legislation and judiciary committee.
The bill received initial approval on February 16. It is
expected to be passed on February 26 in the assembly plenary
If passed, the law will have a dramatic effect on
institutions selling derivatives in the country. Any new credit
derivatives will have to be reviewed by the newly established
Korea Financial Investment Association (Kofia), regardless of
the counterparty. And...