Securities code: 300033 securities abbreviation: Hithink Royalflush Information Network Co.Ltd(300033) Announcement No.: 2021-032 announcement on the receipt of the decision on administrative supervision measures by the subsidiary Zhejiang Hithink Royalflush Information Network Co.Ltd(300033) cloud Software Co., Ltd
The company and all members of the board of directors guarantee that the information disclosed is true, accurate and complete without false records, misleading statements or major omissions.
The subsidiary Zhejiang Hithink Royalflush Information Network Co.Ltd(300033) cloud Software Co., Ltd. (hereinafter referred to as “cloud software”) has received the decision on administrative supervision measures from Zhejiang regulatory bureau of China Securities Regulatory Commission (hereinafter referred to as “Zhejiang regulatory bureau”), and now announces the relevant matters as follows:
1、 Main contents of the decision on administrative supervision measures
After verification by Zhejiang regulatory bureau, the cloud software company has the following violations: first, the stock recommendation software developed and sold is dominated by personnel who are not registered as securities investment consultants; Second, some marketing and service personnel exaggerate, falsely publicize and promise income in disguise. Some personnel who provide investment advice are not registered as securities investment consultants, and some marketing personnel privately charge customers’ fees; Third, in the business promotion link, without risk assessment of customers, i.e. recommending specific software to customers, there are loopholes in investor suitability management; Fourth, it failed to report the change of the company’s principal to Zhejiang regulatory bureau on time; Fifthly, “Tongshun” is a public platform for providing investment consulting services. As the operating entity, cloud software company fails to fulfill the compliance management responsibility for the investment consulting services involved in “Tongshun”.
The above-mentioned acts violate Articles 10, 12 and 24 of the Interim Measures for the administration of securities and futures investment consulting and articles 4, 7, 13, 23, 24, 27 and 28 of the Interim Provisions on securities investment consulting business, The provisions of articles 2 and 4 of the Interim Provisions on strengthening the supervision of using “stock recommendation software” to engage in securities investment consulting business. According to Article 33 of the Interim Provisions on securities investment consulting business and Article 6 of the Interim Provisions on strengthening the supervision of using “stock recommendation software” to engage in securities investment consulting business, Zhejiang regulatory bureau decided to order cloud software company to correct the above problems. Cloud software company shall take effective measures to protect the legitimate rights and interests of investors in the first place of rectification, submit a written report to Zhejiang regulatory bureau within one month from the date of receiving the decision, and accept inspection and acceptance.
If cloud software company is not satisfied with the supervision and management measures, it may apply for administrative reconsideration to China Securities Regulatory Commission within 60 days from the date of receiving the decision, or bring a lawsuit to the people’s court with jurisdiction within 6 months from the date of receiving the decision. During the period of reconsideration and litigation, the above supervision and management measures shall not be suspended.
2、 Other relevant instructions
1. Cloud software company attaches great importance to the above problems, will complete the rectification work within the specified time limit in strict accordance with the requirements of Zhejiang regulatory bureau, and timely submit relevant materials to the regulatory authorities.
2. The cloud software company’s management and relevant business leaders will take warning, strengthen the study of relevant laws and regulations, strictly adhere to the compliance red line, improve the operation and management level, and further ensure the legal compliance of relevant business.
3、 Documents for future reference
1. Decision on administrative supervision measures ([2021] No. 147)
It is hereby announced.
Hithink Royalflush Information Network Co.Ltd(300033) board of directors
December 29, 2021
