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  • Compliance
Compliance
  • Internal Control
    Overview
    Built on an advanced risk management framework and a rigorous compliance oversight system,
    BNB Asset Management places the protection of investors' assets as its foremost value and contributes to the transparent
    development of the capital markets.
    Built on an advanced risk management framework and a rigorous compliance oversight system, BNB Asset Management places the protection of investors' assets as its foremost value and contributes to the transparent development of the capital markets. In line with the purpose of the amended Act on Corporate Governance of Financial Companies, the Company has introduced a ‘Responsibilities Map’ and an ‘Accountability Management Manual,’ transparently institutionalizing each executive's areas of responsibility for internal control and risk management.
    Through this, the Company realizes an advanced accountability governance in which internal control and risk management operate organically and continuously throughout management.
    • Regulatory Compliance
      Strict adherence to relevant laws
      and internal regulations
    • Proactive Risk Management
      Systematic monitoring
      and preventive action
    • Responsible Management
      Clear definition of each
      individual's duties and authority
    • Transparent Processes
      Fair and transparent procedures
      with continuous improvement
  • Internal Control
    Structure
    By combining a pre-compliance-centered risk-blocking framework with a company-wide culture of internal control
    accountability, we build an unwavering management environment that protects client assets.
    • Prevention
      Early identification of risk
      and pre-compliance review
    • Continuous Monitoring
      Ongoing monitoring
      and regular internal audits
    • Immediate Response/Improvement
      Immediate resolution of events and
      establishment of recurrence-prevention
      management guidelines
  • Internal Control and
    Risk Management
    Framework
    With top management comprising the Board of Directors and the CEO at its apex, the Company operates an independent
    Compliance Officer—who concurrently serves as Chief Risk Officer (CRO) and Chief Privacy Officer—together with the
    Compliance Team as the executing organization.
    In addition, the Company organically combines three specialized committees by function that deliberate on and control field-
    specific risks in depth, thereby operating a seamless internal control system.
    Control and
    Decision-Making Body    		 Key Roles and Principal Matters for Deliberation and Resolution
    Investment Review Committee
    • nactment and amendment of asset management operating regulations, and approval of exceptional management
    • Formulation of asset allocation strategies for each fund and company-wide, and setting of risk limits by investment asset class
    • Determination of effective asset allocation ratios, and setting of derivatives (futures/options) trading limits and delegation of authority for each fund
    • Approval of target fund durations and of limits by investment target for bond and liquidity assets
    Risk Management
    Working Committee
    • Working-level deliberation on risk management policies and risk criteria across proprietary assets and collective investment property
    • Formulation and resolution of company-wide crisis management measures and business continuity plans (BCP) in preparation for market shocks and other events
    • Preliminary risk review and approval for new business initiatives and the development of new products such as new funds
    • Deliberation on the grounds for deferral when permitted risk limits are exceeded, and resolution of subsequent mandatory measures
    • Deliberation on matters relating to the deferral of redemptions due to the impairment of collective investment property
    • Final decision-making on whether to defer the stop-loss execution for positions with realized losses of 30% or more
    Collective Investment Property
    Valuation Committee
    • Establishment of structures to ensure the independence, consistency, and transparency of the fair valuation of collective investment property
    • Establishment of fair-value valuation methodologies for non-marketable assets (assets with no market price, such as Pre-IPO holdings)
    • Deliberation on and application of the selection and replacement of external bond valuation firms and the appropriateness of the prices they provide
    • Strict classification of impaired assets such as defaulted bonds, and determination of asset valuation amounts
    • Deliberation on the cause analysis and the official correction/disclosure procedures when valuation errors of collective investment property occur
  • Internal Control
    Process by
    Investment Stage
    Grounded in rigorous risk management and compliance adherence, BNB Asset Management manages client assets
    safely and creates trusted value.
    • Pre-Investment
    • During Investment
    • Post-Investment
    Investment Team
      • Sourcing/reviewing investment ideas
      • Company analysis and formulation of investment strategy
      • Entry of pre-compliance items
      • Trade execution and portfolio management
      • Management within risk limits
      • Performance analysis and post-investment management
      • Reporting when issues arise
    Compliance Team
      • Review of investment appropriateness
      • Advance verification of compliance with laws and internal regulations
      • Real-time monitoring
      • Periodic review of compliance items
      • Post-event monitoring
      • Internal audits and identification of improvements
    PI Team
      • Prior approval of proprietary asset management
      • Verification of conflicts of interest
      • Proprietary asset management and proprietary trading
      • Ex-ante/ex-post controls
      • Verification and reporting of transaction records
      • Management including post-event monitoring
    Committees
      • Deliberation by the Investment Review Committee
      • Risk Management Working Committee (deliberation on risk limits and issues)
      • Collective Investment Property Valuation Committee (deliberation on valuation and disclosure)
  • Five Compliance
    Principles
    • 01 Strict compliance with laws and internal regulations
    • 02 Prevention of conflicts of interest and fair dealing
    • 03 Accurate information provision and transparent reporting
    • 04 Protection of client information and confidentiality
    • 05 Continuous monitoring and improvement
  • Relevant Laws and
    Internal Regulations
    • Relevant Laws and Regulations
      • Financial Investment Services and Capital Markets Act
      • Act on Corporate Governance of Financial Companies
      • Regulations related to collective investment schemes, among others
    • Internal Regulations
      • Internal Control Standards
      • Risk Management Standards
      • Code of Ethics for Officers and Employees
      • Conflict-of-Interest Management and Information Barrier Regulations
      • Guidelines on the Prevention of Unfair Trading
      • Internal Control Standards for Financial Consumer Protection
      • Personal Information Protection Guidelines and Privacy Policy, among others