According to the statistics of Chinese reporters from securities companies, the securities industry has received 22 regulatory fines since March, including 8 securities companies such as new era securities, China Merchants Securities Co.Ltd(600999) , Shenwan Hongyuan Group Co.Ltd(000166) and 14 fines issued to practitioners in the securities industry.
Specifically, half of the fines involved in brokerage business, including investment advisers, information systems and compliance issues, have received the focus of supervision. In addition, there are up to 6 and 4 fines for asset management and investment banking respectively. During the Qingming Festival on April 2, the Shenzhen Securities Regulatory Bureau also announced the first penalty of the securities industry in the second quarter of this year, pointing to China Merchants Securities Co.Ltd(600999) ‘s information technology!
8 securities companies have been fined since 3 months
According to the statistics of Chinese reporters of securities companies, since March, a total of 8 securities companies or their branches have received regulatory fines, including new era securities, China Merchants Securities Co.Ltd(600999) , Shenwan Hongyuan Group Co.Ltd(000166) , Everbright Securities Company Limited(601788) , Zhongtai asset management and other companies, as well as the branches or business departments of Citic Securities Company Limited(600030) , Anxin securities and Northeast Securities Co.Ltd(000686) . In addition, 14 tickets were issued to practitioners in the securities industry.
by business, of the 22 tickets, 4 were related to investment banking, 6 were related to asset management, 11 were related to brokerage, and 1 was related to information disclosure
6 tickets refer to asset management business
Specifically, since March, a total of six tickets have been issued to the field of asset management. Among them, China Thailand asset management and two principals received three tickets at one time, due to unreasonable valuation methods, imperfect related party transaction system and other reasons.
On March 17, Shanghai Securities Regulatory Bureau issued three tickets to China Thailand asset management and two principals. The ticket shows that the following behaviors exist in the business process of China Thailand asset management: first, the company’s individual asset management plans still use the historical closing price valuation for a long time when the bidding trading of the invested bonds has stopped, and the valuation method is unreasonable. Second, the related party transaction system is not perfect, and the pricing method of related party transactions is not standardized in the system.
China Thailand asset management was ordered to make corrections by Shanghai Securities Regulatory Bureau, and Wang Hongyi, the company’s compliance director and member of the company’s Valuation Committee, and Xu Jiandong, the company’s general manager and member of the company’s Valuation Committee, were issued a warning letter.
It is worth mentioning that “the valuation method of asset management products is unreasonable” has become the hardest hit area for the asset management business of securities companies recently. The reporter noted that since November 2021 alone, several companies such as China International Capital Corporation Limited(601995) , Zheshang asset management and Dongxing Securities Corporation Limited(601198) have been punished for similar reasons.
In November 2021, China International Capital Corporation Limited(601995) was ordered to correct by Beijing Securities Regulatory Bureau. There are two main problems: one is to use the cost method to value some assets in the private placement asset management plan; the other is that the valuation techniques adopted for the same investment variety with the same characteristics are inconsistent. In January this year, Zhejiang securities regulatory bureau announced that it would take corrective measures against Zheshang asset management and suspend the filing of private asset management products for six months, pointing out that Zheshang asset management had five violations, such as inconsistent valuation techniques for the same investment variety with the same characteristics and unreasonable valuation of default assets held by products. In February this year, the warning letter issued by Beijing Securities Regulatory Bureau to Dongxing Securities Corporation Limited(601198) also mentioned the reasons of “non-standard investment management, failure to timely adjust the valuation of defaulted bonds for individual products” and “no clear requirement to regularly evaluate the implementation effect of the valuation policies and procedures of the collective plan”.
On March 17, Shanghai Securities Regulatory Bureau also issued a warning letter to Bai Bingyang, the fund manager of Boc International (China) Co.Ltd(601696) . According to the ticket, after investigation, Bai Bingyang, as the fund manager of Boc International (China) Co.Ltd(601696) advantage manufacturing stock securities investment fund, failed to be diligent and responsible in the process of fund management and operation, resulting in the failure of the fund to maintain cash not less than 5% of the net asset value of the fund or government bonds with a maturity date of less than one year on October 28, 2021.
In the decision, the Shanghai Securities Regulatory Bureau said that Bai Bingyang should seriously study relevant laws and regulations, strictly abide by post responsibilities, be professional, prudent, diligent and responsible, strengthen the awareness of law-abiding and compliance, and earnestly safeguard the interests of fund unitholders. In the future, Shanghai Securities Regulatory Bureau will pay close attention to the performance of Bai Bingyang’s duties in daily supervision.
On March 23, new era securities was issued a warning letter by Beijing Securities Regulatory Bureau. The ticket shows that in the process of carrying out asset management business, the company provides financing to the local government and its subordinate departments and accepts the guarantee commitment of the local government and its subordinate departments.
On March 29, the Beijing Securities Regulatory Bureau also took regulatory measures against Gao He, the head of asset management business of Huarong securities. The ticket shows that there are some problems in the asset management business of Huarong Securities Co., Ltd., such as careless investment decision-making of some products, inadequate risk control, unsound due diligence of investment objects, and non disclosure of major matters. Beijing Securities Regulatory Bureau believes that the occurrence and continuation of the above problems run through the period when Gao he served as the head of relevant departments of Huarong securities asset management business, the assistant general manager and deputy general manager in charge of asset management business, and Gao he has actually performed relevant examination and approval responsibilities and is directly responsible for it.
investment advisory business repeatedly fined
securities companies have been punished repeatedly for their investment consulting business, which is also a prominent phenomenon in the near future
On March 11, the Shenzhen Securities Regulatory Bureau issued a warning letter to the Shantou branch of Anxin securities and took regulatory measures against the investment adviser Chen NANPENG.
According to the ticket, in the event that Chen NANPENG, an investment consultant, released and forwarded the “invincible benevolence – 2022 China stock market forecast” in the company’s wechat group, Anxin securities Shantou branch did not monitor and manage the wechat group news in strict accordance with the internal system requirements, and did not effectively control the relevant professional behaviors of investment consultants. As an investment adviser, Chen NANPENG’s “invincible benevolence – 2022 China stock market forecast” produced by him and released on the company’s wechat group was forwarded and disseminated to the outside world. The relevant forecasts were not cautious about the comments on the industry and market. The stocks were classified and analyzed according to the five element attributes, and the investment suggestions did not have a reasonable basis.
On March 22, the official website of Shanghai Securities Regulatory Bureau issued a prior notice on Shenwan Hongyuan Group Co.Ltd(000166) ordering to increase the number of compliance inspections. The reason is that the company did not independently carry out appropriateness management, did not fully understand the investors, did not obtain the customer’s address, occupation, financial status, investment experience, integrity records and other information when carrying out online investment consulting business with ant wealth, and the operation of relevant information system was not under the company’s own control, resulting in the failure to save customer information, appropriateness management and relevant service records locally.
Shanghai Securities Regulatory Bureau ordered Shenwan Hongyuan Group Co.Ltd(000166) 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 within 10 working days after each inspection Shenwan Hongyuan Group Co.Ltd(000166) Zhao Yao, the project leader at that time, Fang Qingli, the member of the Executive Committee and general manager of the wealth management division at that time, and Xie Chen, the chief information officer at that time, also received fines for this.
Zhao Yao and Fang Qingli were taken regulatory talk measures, and Xie Chen was issued a warning letter.
Shenwan Hongyuan Group Co.Ltd(000166) previously responded that the company has basically completed the relevant rectification work in accordance with the regulatory requirements, and the current operation and management of the company is normal and running well.
investment bank and it were also fined
In addition, the recent ticket also involves investment banks, information disclosure, it systems and other aspects.
On March 1, Everbright Securities Company Limited(601788) announced the disciplinary decision of Shanghai Stock Exchange. The decision shows that Everbright Securities Company Limited(601788) in terms of information disclosure, the relevant responsible persons have three violations in the performance of their duties, including the untimely disclosure of major contracts, the untimely disclosure of the progress of major litigation matters and the incomplete disclosure of major transactions, which violate the relevant regulations of the Shanghai Stock Exchange. Therefore, the Shanghai Stock Exchange also criticized Xue Feng, who served as chairman and President (Acting Secretary of the board of directors) of Everbright Securities Company Limited(601788) in time.
On March 2, Citic Securities Company Limited(600030) Jiangxi Branch received a ticket from Jiangxi securities regulatory bureau and ordered to increase the number of internal compliance inspections. Zhang Xinqing, the person in charge of the branch, was also issued a warning letter.
The ticket shows that the company has many problems: first, the person in charge approved the OA system process during the forced departure, and the actual personnel performing their duties are inconsistent with the situation reported to the regulatory authorities. Second, some office computers failed to enter the CRM employee’s trading address monitoring and maintenance system in time as required, and the OA system could not provide the authorization record of performing duties on behalf of others. Third, the increase of business premises was not reported to the regulatory authorities in time. Fourth, there is a situation of sending product promotion messages to investors whose risk level is higher than their risk tolerance. Fifth, margin trading contracts, stock option brokerage contracts and investor account opening documents did not adopt collection and registration control, serial number control and cancellation control, and the custodian and user were not separated. Sixth, there are some problems in some counter businesses, such as the lack of filling in important information of customer account opening materials and the lack of power of attorney of legal representative.
In terms of investment banking, on March 28, the CSRC posted three fines on its website, involving six insurance agents of Guotai Junan Securities Co.Ltd(601211) , Haitong Securities Company Limited(600837) , and BOCI Securities, of which Guotai Junan Securities Co.Ltd(601211) two insurance agents were identified as inappropriate candidates for three months Haitong Securities Company Limited(600837) and two insurance agents of BOCI Securities were taken to temporarily reject the documents related to administrative license for three months.
From the perspective of the origin of engagement, the six insurance agents were held accountable for the performance change of the recommended convertible bonds or IPO projects. Among them, Guotai Junan Securities Co.Ltd(601211) two insurance agents recommended the convertible bond project to make losses in the year when the public securities were listed; In addition, the items recommended by the four insurance agents are that the operating profit of the issuer’s securities issuance and listing fell by more than 50% over the previous year.
On April 2, Shenzhen Securities Regulatory Bureau announced that China Merchants Securities Co.Ltd(600999) in the network security incident on March 14, 2022, there were some problems, such as imperfect change management, untimely and inadequate emergency disposal, so it decided to take administrative supervision measures to order China Merchants Securities Co.Ltd(600999) to make corrections.
In the morning trading on March 14, investors successively reported that China Merchants Securities Co.Ltd(600999) trading system failed, which was mainly reflected in the failure of transaction or cancellation China Merchants Securities Co.Ltd(600999) responded that all trading orders in its centralized trading system had been transmitted to the exchange system in real time. However, due to the delay of transaction return processing, some customers did not receive the transaction return information in time at the client, and the cancellation transaction was affected.
Shenzhen Securities Regulatory Bureau said that China Merchants Securities Co.Ltd(600999) should further strengthen the overall planning of the construction of important information systems, fully understand the system architecture and internal operation mechanism, strengthen the management of R & D, testing, launch, upgrading and change and operation and maintenance, improve the emergency response mechanism, ensure the professional ability and quantity allocation of personnel in key positions, and ensure the safe and stable operation of the information system. Meanwhile, the Shenzhen Securities Regulatory Bureau requires China Merchants Securities Co.Ltd(600999) to investigate the internal responsibility of the personnel responsible for the incident, complete the above rectification work and submit the rectification report within three months.
