Watchdog issues caution on RBS Seoul branch

SEOUL, Sept. 5 (Yonhap) -- South Korea's financial regulator said Monday it has issued an institutional caution and reprimanded employees of the Royal Bank of Scotland (RBS) Seoul branch for breaching bank and capital market rules.
"An institutional caution was imposed on the branch and four officials received penalties, including a salary cut," the Financial Supervisory Service (FSS) said in a statement.
An institutional caution, which does not lead to any business disadvantages, is the weakest level of punishment that can be imposed on a financial firm.
According to the FSS, RBS's Seoul branch illegally commissioned 135 foreign currency options and non-deliverable forward deals to its Singapore branch between April 2007 and November 2009. The deals were worth US$397 million, it added.
The local branch also brokered hybrid notes worth $60 million between its London headquarters and a local asset manager in December without a required license, the regulator said.
The FSS inspected the local branch between Feb. 22 and March 11. The regulator conducts regular inspections on the 38 branches of foreign lenders every two to three years.