SEOUL, Oct. 20 (Yonhap) — South Korea’s financial regulator said Tuesday it has decided to cancel the business registration certificate of a local asset management company due to an illegal act.

The Financial Supervisory Service (FSS) said Lime Asset Management Co. has been accused of providing inaccurate information about its fund products sold to customers through banks and securities firms.

Banks and brokerages have been also under fire for selling Lime’s fund products without thoroughly vetting the information.

Cancellation of the business certificate is the strongest penalty that can be given to a financial company for any illegal acts. Four other levels of penalty are caution against institution, warning against institution, correction order and suspension of operation.

The FSS also demanded Lime Asset to dismiss detained CEO Won Jong-jun from his position.

The Financial Services Commission will determine whether to confirm the cancellation and penalize Won as early as next month, the FSS said.

Founded in 2012 as an investment advisory, Lime Asset was granted a license to operate private funds in 2015.

The company was managing a record high of 5.7 trillion won (US$4.8 billion) as of June last year. In October last year, the company froze withdrawals, citing an inability to liquidate enough assets to meet the redemption requests.