Source: Du Chuang
On the evening of April 19, Jiangsu Securities Regulatory Bureau issued a document saying that Huatai Securities On site inspection was carried out, Many problems were found in its own business, investment follow-up business, customer suitability management, etc And decide to take supervision measures to order them to make corrections.
In the past week, the fines of securities companies have continued, and the trend of "strict supervision and control" has continued. Industry insiders pointed out that the increase in penalties for violations of laws and regulations by securities companies reflects the determination of the regulators to maintain market order and protect the rights and interests of investors.
Four problems found during on-site inspection
Jiangsu Securities Regulatory Bureau said that after investigation, Huatai Securities had the following problems:
First, the compliance risk control of some proprietary businesses is not in place 。 In the bond market making business, lax control over related transactions and lack of effective control over risk hedging of bond investment led to expansion of losses.
Second, the appropriateness management and supervision obligations of some customers were not fulfilled in place. Issuance of non breakeven floating income vouchers linked to individual stock prices to enterprises without risk management needs such as hedging; Issue non breakeven floating income certificates to private funds that reach the specified investment threshold through multi-level nesting; Failing to fully urge shareholders of listed companies to truthfully disclose shareholding reduction information.
Third, the qualification management of employees is not in place. It is found that some of the in-service staff of Huatai Securities who should have the fund practice qualification failed to pass the fund practice qualification examination.
Fourth, the internal control of investment follow-up business is not perfect. The employee investment tracking platform of Huatai Securities subsidiary failed to follow all investment projects, which did not comply with the internal investment tracking regulations of Huatai Securities subsidiary. The above behaviors reflected that the company's internal control was imperfect.
The above issues violate the relevant provisions. According to the relevant provisions of the Measures for Compliance Management of Securities Companies and Securities Investment Fund Management Companies, the Measures for the Supervision and Administration of Publicly Offered Securities Investment Fund Sales Agencies, and the Regulations on the Supervision and Administration of Securities Companies, Jiangsu Securities Regulatory Bureau decided to take regulatory measures to order Huatai Securities to correct, and required it to submit a written report on the implementation of the rectification within 30 days from the date of receiving the letter of decision.
From the performance data of 2023, Huatai Securities' revenue and net profit rank second in the industry, only second to citic securities , ranking firmly at the top of the industry.
It should be noted that according to incomplete statistics, since April, Jiangsu Securities Regulatory Bureau has West China Securities Donghai Securities and Huatai Securities have taken administrative supervision measures.
Supervision storm comes
In the past week, the fines of securities companies have appeared frequently. Haitong Securities , CITIC Securities Soochow Securities Three securities firms were successively investigated by the CSRC, Huaxi Securities was suspended for six months, Huatai Securities and Donghai Securities were ordered to correct, Guosen Securities Galaxy Securities was issued a warning letter.
Only in the evening of April 19, except that Jiangsu Securities Regulatory Bureau disclosed the punishment decision on Huatai Securities, Shenzhen Securities Regulatory Bureau also disclosed the punishment decision on Guosen Securities. Shenzhen Securities Regulatory Bureau said that after investigation, Guosen Securities' compliance internal control had the following problems: the management of the blacklist of individual subject matter of the stock pledge style repurchase business was not in place, the due diligence of individual subject matter was not sufficient, and the conditional postponement of several times after the risk of the business financier caused large losses; The management of rescue products is insufficient, and the funds invested in some rescue asset management products for rescue purposes do not reach the specified proportion; The management of private equity subsidiaries is not in place, some products are not recorded for business development, and some investment funds of some funds are misappropriated by partners; There are problems such as providing convenience for financial institutions and their management products to evade supervision, providing outsourcing services for private placement products that have not been filed, and the implementation of the information barrier system is not in place.
Shenzhen Securities Regulatory Bureau has decided to take administrative supervision measures to issue a warning letter to Guosen Securities according to law. In addition, Du Haijiang, a senior manager of Guosen Securities who was in charge of the stock pledge repurchase business from 2019 to 2022, was also issued a warning letter because of his inadequate management of the blacklist of individual objects, inadequate due diligence on individual objects, and repeated conditional delays after the risk of the business financier, causing large losses.
Also on the evening of April 19, due to involvement Medium nuclear titanium dioxide (Rights protection) CITIC Securities and Haitong Securities, which were put on file for investigation on the illegal share reduction case of the controller, successively announced that they had received the advance notice of administrative punishment from the CSRC. From the total amount of fines and confiscations, the actual controllers of CNNC Titanium Dioxide, Wang Zelong, Hong Haowei (friends of Wang Zelong), CITIC Securities Capital, CITIC Securities, Haitong Securities, and Han Yuchen, are expected to total 235 million yuan of fines and confiscations, including 157 million yuan of fines and 77.532 million yuan of confiscations, which is equivalent to two penalties for each. Both securities companies expressed that they sincerely accepted the punishment, and would reflect deeply, earnestly implement the rectification and improve the compliance management level.
Since the beginning of this year, against the background of sharp fluctuations in the market, regulators have frequently stepped up their efforts to punish violations of laws and regulations. Analysts pointed out that, in the medium and long term, the primary consideration of supervision is to continuously improve the sense of gain and earning effect of A-share investors, continuously improve the cohesion and credibility of the A-share market, and then continue to return to the popularity of the stock market. Only short-term and long-term funds can continue to enter the market, and can continue to promote the virtuous cycle and steady upward trend of the A-share market.
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