Self-Regulatory Rules
The Korea Securities Dealers Association(KSDA), first formed in November, 1953, is a special legal entity and self-regulatory organization (SRO). KSDA was established under the Securities and Exchange Act and its principle function is to promote self-regulation in Korea's securities industry.

The articles of KSDA contain following objectives:

To protect the interest of investors / To maintain fair commercial practice among its members / To ensure fair securities transactions / To strive for the sound development of the securities industry
KSDA enforces self-regulatory rules to maintain fairness and raise public and institutional confidence in the securities market.

The rules include:

Fair practice rules (covering investment solicitation, customer management and advertising by member firms and securities employees) / Regulations on Securities Underwriting Business / Regulations on Agreements Management of Securities Companies / Regulations on Disclosure of OTC Bond Trading / Regulations on the KOSDAQ Market Operation / Regulations on Securities Listing / Regulations on the KOSDAQ Market Business / Regulations on Disclosure in the KOSDAQ Market and others
KSDA maintains ongoing communication with the government, which, regards highly the recommendations forwarded by KSDA.
These include constructive comments or suggestions on policy issues or other matters of concern that may improve various rules and regulations related to the securities market.
KSDA operates the Investor Protection Center to provide investors with materials, education and advice on rules and regulations related to investments.
Furthermore, the Center provides consultations services to assist in the resolution of a variety of problems investors may encounter and prompts the local securities market through the official KSDA website (www.ksda.or.kr). Comprehensive, up-to-date information provided by the IPC is published on this website in English and Korean.
KSDA has commenced a new service involving financial transaction inquiries. As it is time consuming to confirm the existence of securities accounts of those deceased, incompetent or missing, this service allows the heirs of such accounts the convenience of KSDA to conduct on their behalf a comprehensive check with the member brokerage firms.
KSDA manages and administers OTC bond transactions. It also posts mark-to-market base yields, representative bond yields and the final bond yield quotations on the different types on its website.
Over-the-counter stocks not listed on KSE or KOSDAQ are eligible for listing on KSDA's Over-the-Counter Bulletin Board.
KSDA is responsible for the listing and delisting of these OTC stocks.
In addition, KSDA administers the rules and regulations related to the operation of OTCBB and disclosures.
Under the Act, KSDA oversees the testing, registering and sanctioning of investment consultant and financial planners.
Under KSDA's Regulation on Business Practice of Securities Companies, two types of license for investment consultant are offered: Certified Futures Consultant(Type I) allows the handling of all types of financial instruments, including stocks, bonds, mutual funds, futures, options and OTC derivatives. Certified Securities Investment Consultant(Type II) is limited to the handling of stocks, bonds, mutual funds and beneficiary certificates.
KSDA also offers a license for Financial Planners who provide a comprehensive asset management strategy for clients through analysis of their personal financial planning and their investment scope and preference.
KSDA also oversees the testing and registering of financial Risk Managers (FRM) and Certified Investment Analysts (CIA). nw