On 3 February 2025, the Financial Services Commission (FSC) proposed rule changes including establishing legal grounds for fractional investment and allowing alternative trading systems (ATS) to trade exchange-traded funds (ETFs). The changes aim to enhance regulations for fractional investment platforms and securities lending intermediary services, streamline the process for IPO bookrunners, expand bond transaction limits for retail investors, and introduce new rules for backdoor listings and trading on ATS. These proposals are open for public comment until 17 March and are expected to take effect from 16 June after legislative review and approval. For more information, please click here.

On 18 February 2025, the FSC announced that the government approved the revision bill for the Enforcement Decree of the Financial Investment Services and Capital Markets Act (FSCMA). This revision is aimed at upgrading rules on short sale practices. For more information, please click here.

On 26 February 2025, the FSC and Financial Supervisory Service introduced a set of measures intended to prevent mis-selling of highly complex financial investment products. For more information, please click here.