Recently, Guangdong securities regulatory bureau announced that Yingda securities, as a continuous supervision and recommendation institution for Guangdong Songyang Recycle Resources Co.Ltd(603863) (hereinafter referred to as “Songyang resources”) initial public offering, failed to perform its continuous supervision duties diligently, and decided to take measures to order Yingda securities to increase the number of internal compliance inspections.
According to the announcement, Guangdong Securities Regulatory Bureau conducted on-site inspection on Songyang resources and extended inspection on the continuous supervision of Songyang resources in charge of Yingda securities. The inspection found that Yingda securities did not find that Songyang resources had not considered and disclosed related party transactions, illegally used the raised funds, and had major defects in internal control in 2019 and inconsistent with the disclosed internal control evaluation information from 2019 to 2020. Due to these circumstances, the special verification opinions on the deposit and use of raised funds in Guangdong Songyang Recycle Resources Co.Ltd(603863) 2019, the on-site inspection report on continuous supervision in Guangdong Songyang Recycle Resources Co.Ltd(603863) 2019, the annual report on continuous supervision in Guangdong Songyang Recycle Resources Co.Ltd(603863) 2019 and the on-site inspection report on continuous supervision in Guangdong Songyang Recycle Resources Co.Ltd(603863) 2020 issued by Yingda securities do not truly and accurately reflect the above-mentioned violations of Songyang resources.
Guangdong securities regulatory bureau said that Yingda securities violated Article 5 and Article 28 of the measures for the administration of securities issuance and listing recommendation business. It decided to take regulatory measures against Yingda securities to order it to increase the number of internal compliance inspections, and ordered Yingda securities to carry out internal compliance inspections every two months within six months from the date of issuance of the decision on regulatory measures, so as to comprehensively inspect the establishment of the company’s recommendation business system The implementation of the continuous training system for the sponsor representatives and the implementation of the standardized rectification of relevant problems, conduct a comprehensive evaluation of the effectiveness of the internal control of the sponsor business on a regular basis, ensure that the sponsor representatives, project coordinators and other relevant personnel of the sponsor business are diligent and responsible, strictly control risks and improve the quality of the sponsor business. Improve the management system and internal control measures according to the inspection, and submit the compliance inspection report within 10 working days after each inspection.
