With investment losses from equity-linked securities(ELS) products tracking Hong Kong's H Index expected to be close to six trillion won, or over four-point-five billion U.S. dollars, the Financial Supervisory Service on Monday announced a set of plans that advise banks and brokerages to compensate losses up to 100 percent of the investment losses.

The compensation package requires sellers of ELS products to compensate between 20 to 60 percent of the losses incurred by investors, while the rate may rise to a maximum 100 percent, depending on the seriousness and number of violations and unfair practices committed by the financial institutions.

The current standard allows for a basic compensation ratio of 20 to 40 percent, depending on the violations committed by the financial institutions, 10 percentage points from the bank and five percentage points from securities firms for poor internal control, while up to 45 percentage points can be added for each person, depending on whether the investor is in the financially vulnerable group, such as the elderly or a first-time ELS subscriber.

However, up to 45 percentage points can be deducted from the ratio for investor negligence, depending on ELS investment experience or level of financial knowledge.