It's a matter of whether IPO is cancelled in large quantity!
CSRC with 12 regulatory documents
The parties of Zhongde Securities and Zhongtian Guofu are required to go to the CSRC for regulatory talks next Friday
(Data picture)
//The CSRC issued 12 consecutive regulatory documents
//Decision on Taking Regulatory Conversation Measures against Liu Ping
Liu Ping:
Upon investigation, we found that the internal control opinions of the investment banking business of Sino German Securities Co., Ltd. on whether to withdraw the project were not replied to or implemented, the head of the quality control department acted as the sponsor representative of the IPO project, the sponsor work report did not fully disclose the core opinions, and the approval procedures were not re performed after the amendment of some project application documents, Moreover, some investment banking projects employ third parties who fail to strictly perform compliance review.
The above situation violates Articles 31 and 33 of the Measures for the Administration of Securities Issuance and Listing Recommendation Business (hereinafter referred to as the Measures for Recommendation), Article 6 of the Measures for the Compliance Administration of Securities Companies and Securities Investment Fund Management Companies (hereinafter referred to as the Measures for Compliance Administration), and the Regulations on the Integrity of Securities and Futures Operating Institutions and Their Staff (hereinafter referred to as the "Incorruptible Practice Regulations") Article 6, Article 10, 32, 61, 66 and 77 of the Guidelines on Internal Control of Investment Banking Business of Securities Companies.
Liu Ping, as the head of the quality control department, is responsible for the relevant violations. In accordance with the provisions of Article 64 of the Recommendation Measures, Article 32 of the Compliance Management Measures and Article 18 of the Incorruptible Employment Regulations, we will decide to take administrative supervision measures for your supervision interview. Now we request you to bring your valid ID card to our club (address: 17/F, Block A, Fukai Building, No. 19, Financial Street, Xicheng District, Beijing) at 10:00 on September 15, 2023 for a regulatory talk.
If you are not satisfied with this supervision and management measure, you can apply for administrative reconsideration to the Commission within 60 days from the date of receiving this decision, or you can file a lawsuit to the people's court with jurisdiction within 6 months from the date of receiving this decision. During the period of reconsideration and litigation, the above supervision and management measures shall not be suspended.
//Decision on Taking Regulatory Conversation Measures against Zhongtian Guofu Securities Co., Ltd
Zhongtian Guofu Securities Co., Ltd.:
After investigation, I will find that your company has the following violations: First, the internal control department lacks the effectiveness of supervision and the independence of performance, the tracking and implementation of some project core opinions are not in place, the sponsor work report has significantly reduced the concerns, the core does not pay attention to the major risks of whether to cancel the project, the salary assessment system is unreasonable, and there is excessive incentive. Second, the risk prevention and control mechanism for honest employment is not perfect, and the review system of third-party service agencies is not implemented in place.
The above situation violates Articles 31, 32 and 34 of the Measures for the Administration of Securities Issuance and Listing Recommendation Business (hereinafter referred to as the "Recommendation Measures"), Article 6 of the Measures for the Compliance Administration of Securities Companies and Securities Investment Fund Management Companies (hereinafter referred to as the "Compliance Management Measures"), and the Regulations on the Integrity of Securities and Futures Operating Institutions and Their Staff (hereinafter referred to as "Incorruptible Practice Regulations") Article 6, Articles 5, 14, 28, 57 and 61 of the Guidelines on Internal Control of Investment Banking Business of Securities Companies. In accordance with the provisions of Article 64 of the Recommendation Measures, Article 32 of the Compliance Management Measures and Article 18 of the Incorruptible Practice Regulations, we have decided to take administrative supervision and management measures for regulatory interviews with your company. It is hereby requested that the compliance principal and the investment banking business principal of your company carry valid identity documents to our council (address: 17th floor, Block A, Fukai Building, No. 19, Financial Street, Xicheng District, Beijing) at 15:00 on September 15, 2023 for a regulatory talk.
Your company should take a warning, carefully find out and rectify problems, establish, improve and strictly implement the internal control system, workflow and operation specifications of investment banking business, be honest, trustworthy, diligent and responsible, and effectively improve the quality of investment banking business. Your company shall carry out internal accountability for responsible personnel in strict accordance with the internal accountability system and submit a written accountability report to Guizhou Securities Regulatory Bureau.
If you are not satisfied with this supervision and management measure, you can apply for administrative reconsideration to the Commission within 60 days from the date of receiving this decision, or you can file a lawsuit to the people's court with jurisdiction within 6 months from the date of receiving this decision. During the period of reconsideration and litigation, the above supervision and management measures shall not be suspended.
China Securities Regulatory Commission
September 1, 2023
