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In the "two strong and two strict" regulatory tone, the securities industry fines one after another.
On May 21, Hebei Branch of CIC Securities received a warning letter issued by Hebei Securities Regulatory Bureau, pointing out the four problems existing in the branch.
Specifically, it involves the lack of effective compliance management for employees' professional behavior, inadequate investor appropriateness management, special assessment and incentive policies for some public offering fund products during the subscription period, incomplete information publicity content, and so on.
According to incomplete statistics, under strict supervision, securities firms have received more than 100 fines so far this year. Since May this year, more than 10 brokerages and their branches have been fined, including the head brokerage.
A warning letter was issued by the first branch of CIC Securities.
Hebei Securities Regulatory Bureau pointed out that after investigation, the Hebei branch of CIC Securities has the following problems:
(1) failure to implement effective compliance management for employees' professional behavior. Individual employees illegally entrust third parties to conduct investor solicitation activities; some employees sell financial products and provide investment advisory services without trace management; the mobile phone numbers actually used by some employees are not included in the compliance monitoring system; investment consultants provide investment advice to investors without reasonable basis and have not been examined by compliance personnel.
Second, the management of investor appropriateness is not in place. Take the initiative to introduce medium-and high-risk fund products to ordinary investors whose expected investment objectives, investment duration and risk levels are uncertain; some public fund products mislead investors in the sales process, and there is no risk reminder.
Third, implement special assessment and incentive policies for some public offering fund products during the subscription period.
Fourth, the content of information publicity is incomplete. The branch does not publicize the interest rates and rates of margin trading at the place of business.
Hebei Securities Regulatory Bureau said, the above acts violate the relevant provisions such as the measures for the Administration of Securities Brokerage Business, the interim provisions on the Administration of Securities Brokers (revised in 2020), and the Compliance Management measures for Securities companies and Securities Investment Fund Management companies (revised in 2020).
In the end, the Hebei Securities Regulatory Bureau decided to take the administrative supervision measure of issuing a warning letter to the Hebei branch of CIC Securities, and said that the branch should attach great importance to it, seriously study laws and regulations, take effective measures to remedy and actively rectify it, and submit a written report to the supervision.
Intensive collection of fines by securities firms
Chinese reporters from brokerages have noticed that since the beginning of this year, regulators have issued more than 100 fines to securities firms, their branches and relevant responsible persons, covering almost all of them, far exceeding the number of penalties imposed on head brokerages.
At the same time, the scope of punishment business imposed by supervision on securities firms includes brokerage, investment bank, asset management, financing, proprietorship and other business areas; in terms of punishment measures, including a number of institutions and responsible persons have been taken to issue warning letters, ordered to correct and other administrative regulatory measures, sponsor business qualifications have been suspended for half a year, and so on.
According to incomplete statistics, more than a dozen brokerages and their branches have received fines since May this year.
Take May 10 as an example, on the same day, Beijing Securities Supervision Bureau, Zhejiang Securities Supervision Bureau, Guangdong Securities Supervision Bureau, Anhui Securities Supervision Bureau and Shaanxi Securities Supervision Bureau disclosed nine tickets. The subject of punishment involves Guoxin Securities, China International Capital Corporation, Shen Wanhongyuan, CITIC Securities, Dongguan Securities, Open Source Securities and other six securities firms.
On May 14, Jiangsu Securities Regulatory Bureau announced several fines, all related to Jin Tongling (rights protection) project. In this incident, Everbright Securities (rights protection), Guohai Securities and Soochow Securities all issued warning letters, while Huaxi Securities was suspended for half a year. At the same time, on May 14, Jiangxi Securities Regulatory Bureau took administrative supervision measures to issue warning letters to Societe Generale Securities Jiangxi Branch and its employees Li Xiaolin.
On May 17, the Shanghai Securities Regulatory Bureau disclosed three fines for asset management of securities firms. Zhu Qian, an executive in charge of Huatai Capital Management and related business, was taken to issue a warning letter, and Haitong Capital Management was also issued a warning letter.
Editor-in-chief: Yang Yucheng