What action is taken if an asset manager manages a private fund improperly?

The Financial Services Commission may order a general private fund to be terminated or dissolved where, for example, the fund does not meet the requirements for establishment, has not been reported, or has been reported falsely.

It may also take measures such as business suspension, orders to transfer contracts, orders to correct or stop violations, and institutional warnings. The 2021 reform also created a route for swiftly removing unsound asset managers that fall short of registration requirements such as equity capital.