On March 22, Shanghai Securities Regulatory Bureau issued a prior notice ordering Shenwan Hongyuan Group Co.Ltd(000166) securities to increase the number of compliance inspections. According to the Shanghai Securities Regulatory Bureau, Shenwan Hongyuan Group Co.Ltd(000166) securities and ant wealth (Shanghai) Financial Information Service Co., Ltd. had a number of violations when they cooperated to carry out online investment consulting business. For example, the operation of relevant information systems was not under the control of the company itself.
At the same time, Shanghai Securities Regulatory Bureau also took corresponding regulatory measures for three relevant personnel of Shenwan Hongyuan Group Co.Ltd(000166) securities, including regulatory interview measures for Fang Qingli, then member of the Executive Committee of Shenwan Hongyuan Group Co.Ltd(000166) securities and general manager of wealth management division.
In response, Shenwan Hongyuan Group Co.Ltd(000166) securities responded that the company has basically completed the relevant rectification work in accordance with the regulatory requirements.
did not independently carry out appropriateness Management
On March 22, Shanghai Securities Regulatory Bureau issued a prior notice ordering Shenwan Hongyuan Group Co.Ltd(000166) securities to increase the number of compliance inspections. According to the Shanghai Securities Regulatory Bureau, upon investigation, Shenwan Hongyuan Group Co.Ltd(000166) securities and ant wealth (Shanghai) Financial Information Service Co., Ltd. did not independently carry out appropriateness management, fully understand the situation of investors, obtain the customer’s address, occupation, financial status, investment experience, integrity records and other information, and the operation of relevant information systems was not under the company’s own control and failed to save the customer’s information locally Appropriateness management and relevant service records.
The reporter of the daily economic news noted that the compliance management measures for securities companies and securities investment fund management companies stipulates that securities fund operating institutions should fully understand the basic information, financial status, investment experience, investment objectives, risk preference, integrity records and other information of customers in carrying out various businesses and update them in a timely manner. In addition, the information technology management measures for securities fund operating institutions stipulates that securities fund operating institutions should clearly, accurately and completely master the technical structure, business logic and operation process of important information systems to ensure that the operation of important information systems is always under their own control.
Therefore, Shanghai Securities Regulatory Bureau plans to order Shenwan Hongyuan Group Co.Ltd(000166) securities to carry out internal compliance inspection every three months within one year from the date of making the decision on supervision and management measures, and submit the compliance inspection report to the Bureau within 10 working days after each inspection.
At the same time, the Shanghai Securities Regulatory Bureau also said that as a member of the company’s Executive Committee and general manager of the wealth management division at that time, Fang Qingli was responsible for the part of the company’s above violations involving the appropriateness of investors, and decided to take regulatory measures against Fang Qingli; Zhao Yao, as the project leader of the company at that time, was directly responsible for the part of the above violations involving the appropriateness of investors, and decided to take regulatory measures against Zhao Yao; As the then chief information officer of the company, Xie Chen was responsible for leading the information system involved in the above violations of the company, and decided to take administrative supervision measures to issue a warning letter to Xie Chen.
basically completed relevant rectification work
For the above-mentioned violations, Shenwan Hongyuan Group Co.Ltd(000166) securities related persons responded to the reporter of the daily economic news, saying that this regulatory letter is a routine regulatory measure taken by the Shanghai Securities Regulatory Bureau for the company and relevant responsible persons. The letter pointed out the problems existing in the appropriateness of investors, management independence, local preservation of customer information and data in the process of relevant business cooperation. At present, the company has basically completed the relevant rectification work in accordance with the regulatory requirements. At present, the operation and management of the company is normal and running well.
“The company has always attached great importance to compliance risk control, and has always adhered to the business philosophy of steady operation and stable development. The company will further understand the guidance of regulatory policies, comprehensively implement rectification, constantly improve internal management, strengthen cooperative project management, adhere to operation in accordance with laws and regulations, focus on customers, and better serve the development of the real economy.” The aforementioned Shenwan Hongyuan Group Co.Ltd(000166) securities person further said.
In addition, in response to the punishment of Shenwan Hongyuan Group Co.Ltd(000166) securities, ant wealth said that the matter involved was the online personal investment consulting business carried out by Shenwan Hongyuan Group Co.Ltd(000166) securities on ant wealth platform. Ant wealth will fully assist and cooperate with Shenwan Hongyuan Group Co.Ltd(000166) securities in the compliance industry to ensure its full compliance and continuous optimization.
At the beginning of 2020, it became one of the first batch of public fund investors to understand the business of securities. By the end of 2021, Shenwan Hongyuan Group Co.Ltd(000166) securities fund investment consulting business had launched a number of strategic portfolios, with risk levels ranging from R1 to R3, a cumulative contracted scale of more than 6 billion yuan, more than 32000 contracted customers and a customer retention rate of nearly 55%.
The data show that in 2021, the Shanghai stock index, CSI 300 and gem index increased by 4.80%, – 5.20% and 12.02% respectively. The structural market is prominent. Affected by this, the differentiation of fund performance is intensified. From the performance of Shenwan Hongyuan Group Co.Ltd(000166) securities fund investment advisory portfolio, the portfolio strategy established for one year in 2021 has achieved excess return compared with the performance benchmark, and the maximum excess return rate is 7.73%.
