Pursuant to the powers granted to the Joseon Security and Exchange Commission (SEC) under the Joseon Security and Exchange Control Act of 2023, specifically under the General Provisions clause, the SEC hereby establishes the following regulations for broker-dealers operating within the jurisdiction of Joseon:

 

Definition

A broker-dealer in Joseon is defined as any Denizen that, in the ordinary course of business, engages in the activity of effecting transactions in securities for the account of others or for its own account.

 

Conduct

Broker-dealers must conduct their business activities in a manner that is fair, transparent, and consistent with the principles of minimal regulation, market-driven policies, and technology neutrality. They must also comply with all applicable laws and regulations, including anti-money laundering (AML) and counter-terrorism financing (CTF) requirements.

 

Disclosure

Broker-dealers must provide clear, accurate, and timely disclosure of material information to their clients. This includes information about the risks and costs associated with investing in securities, the broker-dealer's compensation, and any potential conflicts of interest.

 

Investor Protection

Broker-dealers have a duty to act in the best interests of their clients. They must take reasonable steps to ensure that the securities they recommend are suitable for their clients' investment objectives, financial situation, and risk tolerance.

 

Supervision

The SEC will supervise broker-dealers to ensure compliance with securities laws and regulations. This will include periodic inspections and examinations of broker-dealers' business activities and records.

 

Enforcement

The SEC will have the authority to take enforcement action against broker-dealers that violate securities laws and regulations. This may include the imposition of sanctions, fines, and other penalties.

 

These regulations shall come into effect immediately and shall apply to all activities related to broker-dealer operations within the jurisdiction of Joseon. The SEC reserves the right to amend these regulations in accordance with the established legislative processes and with the approval of the King.