Perspective on January securities industry penalties: 40 fines involving 17 securities companies, these 3 are "many people punished for one violation"

Per reporter: Chen Chen Per editor: Wu Yongyong

According to the statistics of the "Daily Economic News" reporter, in January 2022, the regulator issued a total of 40 fines to the securities industry, involving 17 securities companies. Among them, 10 involved Zheshang Asset Management, 8 involving Essence Securities and 5 involving Ping An Securities. In addition, there are 2 pieces each involving Haitong Securities, Everbright Securities, Cinda Securities and Guangdong Kai Securities. From the perspective of attribution business types, there are 14 investment banking business and brokerage business, and 10 asset management business.

The number of fines from 3 brokers ranked first

Based on the date of payment, in January this year, the Zhejiang Securities Regulatory Bureau issued fines to 10 people of Zhejiang Commercial Asset Management, which in turn led to the number of fines involving Zhejiang Commercial Asset Management ranking first. The "Daily Economic News" reporter learned that there were the following violations in Zhejiang Commercial Asset Management: the valuation technology used for the same investment variety with the same characteristics was inconsistent; the valuation of the defaulted assets held by the product was unreasonable; there was a lack of investment transaction management; the investor appropriateness management system was not perfect; and the compliance staffing was insufficient.

Therefore, after the Zhejiang Securities Regulatory Bureau had already punished Zhejiang Commercial Asset Management at the end of last year, it punished 10 relevant responsible personnel of Zhejiang Commercial Asset Management in January.

Similar to Zheshang Asset Management, Anxin Securities has also been punished by many people for violations of related matters. According to the reporter's statistics, there were 8 penalties involving Anxin Securities in January, and the number of fines ranked second. The reporter learned that Anxin Securities did not exercise due diligence in carrying out the major asset purchase project of Asia-Pacific Pharmaceutical in 2015 and the public issuance of convertible corporate bonds in 2019, failed to fully verify and verify the authenticity and accuracy of the information disclosure documents of Asia-Pacific Pharmaceutical, did not conduct adequate due diligence, failed to perform continuous supervision obligations in accordance with regulations, and imperfect internal quality control.

Therefore, in January this year, while Essence Securities was asked to make corrections, 7 relevant responsible personnel were also punished.

In addition, in January this year, there were five fines involving Ping An Securities, ranking third in the penalty list. According to the Chongqing Securities Regulatory Bureau, Ping An Securities Chongqing Branch had the following problems: First, in the process of selling the Pioneer Futures Xinyue No. 6 Phase 1 Collective Asset Management Plan (which was established in May 2019 and terminated in May 2021), it did not exercise due diligence and did not fully understand the investor situation; second, it did not report to our bureau when a major incident occurred; third, it took the form of gifting physical goods to attract customers to open accounts.

Therefore, after Ping An Securities Chongqing Branch was punished, 4 relevant responsible personnel were also punished.

Fourteen fines involved investment banking

Continuing to strengthen the responsibility of intermediary institutions as "gatekeepers" is first reflected in the investment banking business, and in the January penalties, a total of 14 fines involved investment banking business, as seen above, Anxin Securities investment banking business violations involved 8 fines.

In addition, the share transfer company issued a circular criticism and public reprimand to Haitong Securities and 3 people. According to the share transfer company, Haitong Securities did not establish, improve and effectively implement the continuous supervision work system in accordance with the provisions of the Guidelines for the Continuous Supervision of Securities Companies Sponsored by the National Small and Medium-sized Enterprise Share Transfer System and relevant business rules, and lacked an effective internal control mechanism. The relevant responsible persons have not been honest, trustworthy, diligent and conscientious in the process of continuous supervision.

The CSRC issued a warning letter to Guotai Junan and 2 people to punish them. According to the CSRC, guotai Junan failed to perform sufficient verification procedures and jointly disclose relevant information on the relationship between the issuer's main customer, Global Jiamei, and the customer Fa Liying in the process of the initial public offering and listing of the initial public offering and listing of the sponsor Litong Technology Co., Ltd. (hereinafter referred to as the issuer), and the disclosure of the amount of products involved in the lawsuit was inconsistent and varied, and there was a situation of relying on the issuer to provide information for the relevant flow verification of the issuer.

The CSRC also issued a penalty of 6 months for wanlian securities to temporarily not accept documents related to administrative licensing. In the process of serving as the initial public offering and listing sponsor representative of Jiangxi Hulk Ecological Environment Co., Ltd., the two people failed to exercise due diligence, did not adequately verify the issuer's monetary funds, related parties and related party transactions, and failed to find that the issuer had made a large number of changes in bank flows, incomplete disclosures of related parties and related party transactions, and defects in the accounting basis and internal control.

Zhongde Securities was investigated for suspected violations of laws and regulations in the sponsorship business in LeTV's 2016 non-public offering of shares. As the trustee of Shengtong Group's non-public issuance of corporate bonds "17 Lusheng 01", "18 Lusheng 01" and "18 Lusheng 02", Yuekai Securities and 3 people were punished by warning letters for failing to maintain professional prudence in the process of entrusted management.

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