South Korea's Financial Supervisory Service (FSS) is reportedly set to review Morgan Stanley's recent large-scale sale of SK Hynix shares, an insider told Yonhap on Sunday.
A source familiar with the matter indicated that the financial regulator aims to determine whether Morgan Stanley potentially violated its obligations under the Capital Markets Act related to the handling of research and analysis reports.
Last week, the Korea Exchange initiated an investigation into Morgan Stanley's sale of SK Hynix shares, following the bank's downgrade of the chipmaker's rating. Should any suspicious transactions be identified, details of the investigation will be forwarded to the FSS for further review.