On April 30, the Financial Services Commission (FSC) designated two new innovative financial services: △Trading and distribution service for aircraft engine trust income securities based on blockchain technology
△Deposit product comparison and recommendation service through an online platform
Is the era of ABS (Asset-Backed Securities) approaching? The FSC granted a special exemption under the Capital Markets Act to Galaxia Money Tree, Shinhan Investment Corp., and Eugene Investment & Securities, who applied for aircraft engine-based fractional investment products.
On April 30, the Financial Services Commission (FSC) announced that during its regular meeting, it designated two new innovative financial services. The FSC granted a special exemption under the Capital Markets Act to Galaxia Money Tree, Shinhan Investment Corp., and Eugene Investment & Securities regarding the issuance and distribution of trust income securities. This allows Galaxia Money Tree to securitize aircraft engine assets into trust income securities and distribute them on the platform.
Currently, aircraft funds are mostly in the form of private equity funds targeting institutional investors, but this opens up opportunities for individual investors to invest in aircraft-related financial products. Galaxia Money Tree will establish a special purpose company (SPC) to purchase aircraft engines, then entrust the physical engines to a trust company (Eugene Investment & Securities) and issue trust income securities through electronic registration based on a trust agreement with the entruster, the special purpose company (SPC). Galaxia Money Tree plans to launch the service in the second quarter of 2025 after developing a distribution platform.
In addition, the FSC granted a special exemption under financial consumer protection laws to CB Financial Solutions, enabling it to register as a financial product seller and have exclusive obligation for one company, allowing it to provide deposit product comparison and recommendation services through an online platform. Agents and intermediaries in financial product sales cannot perform brokerage services for more than one financial company of the same type, and this regulation has been lifted.
The FSC expects that through this measure, consumers will be able to compare various savings and deposit products from different financial companies at a glance, receive recommendations for suitable products, and expand their product selection rights, thereby promoting competition among financial companies. CB Financial Solutions plans to launch deposit product comparison and recommendation services by the middle of this year.
