S.Korean bank smacked for breaches of Securities Act

South Korea's Kookmin Bank has been smacked on the hand by the Securities Commission for offering securities in New Zealand without a proper prospectus.

The commission said today it had accepted "enforceable undertakings" from Kookmin and its directors. An enforceable undertaking is an acknowlegement of a transgression and agreement to rectify that. If not complied with, the commission can get a court order to ensure compliance.

Kookmin Bank is a South Korean bank with a branch office in New Zealand and is a registered bank here.

"Kookmin had been offering term investments to the public without investment statements," the commission said.

It stopped offering the debt securities to the public when it became aware of the breach.

Banks that offer securities to the public needed to be fully aware of their obligations under securities law, commission chairman Jane Diplock said.

She said overseas banks with branches in New Zealand had to comply with all of the local securities law requirements.

Kookmin is the eighth company to have offered enforceable undertakings to the Securities Commission this year.

- NZPA