On September 8, the official website of the CSRC released 13 tickets for investment banking business of securities firms at one time, involving six securities firms including West China Securities, West China Securities, Huachuang Securities, Zhongde Securities, Zhongtian Guofu Securities and Guosen Securities, and 13 relevant executives.
The picture is from the official website of CSRC
From the point of view of the problems pointed out by the supervision, they mainly focus on the problems such as the implementation of the internal control opinions of the investment bank's withdrawal or not project is not in place, the person in charge of quality control acts as the representative of IPO recommendation, the investment bank project employs a third party to review the anomie, the core members fail to perform their duties, the incorruptible practice inspection becomes a mere formality, and the salary assessment is excessively motivated.
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The identities of these 13 senior executives include the person in charge of investment banking business, the person in charge of the regional headquarters of investment banking, the then senior manager in charge of investment banking business, the person in charge of the core department, the senior manager in charge of investment banking business, the person in charge of the quality control department, the senior manager in charge of the quality control department, and the person in charge of compliance. All of them have received administrative supervision measures from the CSRC's regulatory talks and warning letters.
After investigation, the CSRC found that the quality control of some projects and the tracking of core opinions of Western Securities were not well implemented, the assessment system for investment banking business personnel was unreasonable, and the internal accountability was not in place, and some investment banking projects employed third parties did not strictly perform compliance review, so it decided to take administrative supervision and management measures to order them to correct.
At present, only Western Securities has responded to this announcement. Western Securities said that the company attaches great importance to the above problems, will actively implement rectification in accordance with regulatory requirements, and submit a written report to Shaanxi Securities Regulatory Bureau in a timely manner. At present, the operation of the company is normal. Please pay attention to the investment risks.
China Securities Regulatory Commission (CSRC) took regulatory measures for the supervision talk of Zhongtian Guofu, requiring relevant responsible persons to carry valid identity documents to the CSRC to accept the supervision talk in the morning of September 15. The investment banking problem is that 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 recommendation work report has significantly deleted 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. Secondly, the risk prevention and control mechanism of honest employment is not perfect, and the review system of third-party service institutions is not implemented in place.
The internal control opinions on whether to withdraw the part of Sino German securities investment banking business were not replied or implemented, the head of the quality control department acted as the sponsor representative of IPO projects, the sponsor work report did not fully disclose the core opinions, the approval procedures were not re performed after the amendment of some project application documents, and some investment banking projects employed third parties that did not strictly perform compliance review and other issues. The CSRC takes regulatory measures to issue a warning letter.
Huachuang Securities has some problems, such as the internal control opinions of some cancellation projects have not been effectively implemented, the sponsor work report has not fully disclosed the quality control and core concerns, the core members are not responsible for their duties, and the scope of salary deferred personnel is small. The CSRC takes regulatory measures to issue a warning letter.
Huaxi Securities has insufficient independence of internal control. The executive in charge of the quality control department acts as the sponsor representative of the IPO project and participates in the quality control approval. Some internal control opinions are not replied, not implemented or submitted to the outside without the core after modification. The on-site quality control inspection is insufficient, and some investment banking projects employ a third party that does not strictly perform the compliance review. The CSRC shall take supervisory measures to order them to make corrections.
Guosen Securities has unreasonable salary assessment for investment banking businesses, failed to strictly implement the requirements for deferred payment of income, some bond contractors' salary income is directly linked to the project, the internal accountability mechanism is not sound, the tracking of internal control of individual projects is not in place, some core employees are not independent enough, and some employees have integrity risks, Incorruptible employment inspection is a formality. The CSRC shall take supervisory measures to order them to make corrections.
The CSRC requires the above securities companies to take a warning, carefully find out and rectify problems, establish, improve and strictly implement the internal control system, workflow and operating specifications of investment banking business, be honest, trustworthy, diligent and responsible, and effectively improve the quality of investment banking business; The internal accountability system shall be strictly followed for the responsible personnel, and the written accountability report shall be submitted to the local securities regulatory bureau.
It is reported that the CSRC once stated at the end of 2022 that a fully compliant and effective internal control mechanism for investment banking is the basis for the quality of investment banking practice. It adheres to the principle of "penetrating supervision, full chain accountability" and the principle of "double punishment" for institutions and personnel. At the same time, measures are taken according to the severity of the problem.
(Source: interface news)
