Recently, securities firms have frequently been subject to administrative supervision measures or administrative penalties by regulatory authorities. On the 10th, 5 more brokerages were "named". Under the tone of strengthening the foundation and strict supervision and management, supervision presents three major characteristics: denser release, faster implementation, and heavier punishment.
5 brokerages were "named" on the same day
On May 10, regulatory authorities in many places issued 7 regulatory documents for securities firms.
Zhongxin financial reporters combed and found that the five securities companies involved Guosen Securities, CICC, Shenwan Hongyuan, CITIC Securities, and Dongguan Securities not only have a number of head brokerages, but also involve brokerage investment banking business, brokerage business, asset management business and other business areas in terms of content.
For example, in the initial public offering of Quanwei Technology, Dongguan Securities and CITIC Securities were issued warning letters due to violations in the process of continuous supervision and performance of duties.
Screenshot from Guangdong Securities Regulatory Bureau.
In carrying out its asset management business, CICC has decided to take corrective measures against CICC for problems such as liquidity gaps caused by operational risks, illegal provision of channel services, failure to specify the basis for decision-making in same-day reverse transactions, and mutual transactions between product accounts.
Screenshot from Beijing Securities Regulatory Bureau.
In addition, the reporter noticed that in the disclosed announcements, many brokerages and related personnel were both taken administrative supervision measures.
For example, Xu Yicheng, then a senior executive in charge of CICC's business, and Yu Jian, an investment manager, were also issued a warning letter by the Beijing Securities Regulatory Bureau due to the problem of providing channel services in CICC's asset management business in violation of regulations.
Publish more densely, land faster, and impose heavier penalties
Recently, under the tone of strengthening the foundation and strict supervision and management, a large number of administrative supervision measures and even fines for securities companies have come one after another.
From the perspective of time, since April, the frequency of releases has accelerated significantly. In particular, on April 30, the regulatory authorities took intensive action, involving CITIC Securities, Haitong Securities, CITIC Construction Investment Securities, Zhongtai Securities, CICC, Guodu Securities and other securities firms, including many head brokers.
On April 30, the Beijing Securities Regulatory Bureau alone issued a number of administrative supervision measures.
In addition to the high frequency of release, the punishment is also implemented faster.
On April 30, CITIC Securities and Haitong Securities received the "Administrative Penalty Decision" from the China Securities Regulatory Commission for violating laws and regulations in the process of transferring CNNC titanium dioxide's non-public issuance of shares in 2023 in violation of restrictive regulations.
The two major securities firms received the "Notice of Case Filing" from the CSRC on April 12. This also means that it takes less than 20 days from the receipt of the Notice of Case Filing to the receipt of the Administrative Penalty Decision.
In addition, the regulatory authorities have also imposed a "heavy hand" on the punishment.
Previously, due to the failure of Huaxi Securities in the practice of Jin Tongling's non-public issuance of shares in 2019 in the practice of due diligence, false records in the sponsorship of the issuance of shares to specific objects, false records in the relevant reports issued in the continuous supervision stage, and the lack of implementation of on-site inspections in continuous supervision, the Jiangsu Securities Regulatory Bureau decided to suspend the sponsorship business qualification of Huaxi Securities for 6 months.
Under strong supervision, brokerages were put on a "tight spell"
As the "gatekeeper" of the capital market, intermediaries such as securities firms are an important part of protecting the legitimate rights and interests of investors.
On May 10, the China Securities Regulatory Commission (CSRC) issued the revised Provisions on Strengthening the Supervision of Listed Securities Companies, which clearly requires listed securities companies to effectively assume the role of "leaders" and "vanguards" in leading the high-quality development of the industry. The China Securities Regulatory Commission also mentioned that it will adhere to the main line of strengthening supervision, preventing risks and promoting development, continue to strengthen the daily supervision of securities companies, and strengthen law enforcement accountability.
Previously, a number of documents issued by the State Council and the China Securities Regulatory Commission also clearly required the "gatekeeper" responsibilities of intermediaries to be consolidated.
In this regard, Tian Lihui, dean of the Financial Development Research Institute of Nankai University, told the China News Financial Reporter that for the capital market, as an important part of the capital market, the standardized operation of securities companies is of key significance to ensure market order and enhance investor confidence.
"Strict supervision by regulators helps to correct violations in a timely manner, prevent systemic risks, and promote the stability and healthy development of the market. At the same time, by strengthening supervision, the compliance awareness and internal control level of securities companies can be improved, and the industry as a whole can be promoted to develop in a more standardized and transparent direction. ”
Tian Lihui believes that in the long run, this will help improve the standardization and transparency of the entire capital market, enhance investor protection, and promote the stability and healthy development of the capital market.
Source: China News Network