China Fund News reporter Li Zhi
Regulatory action, the private equity industry "support the good and limit the inferior" trend continues unabated.
Shenzhen Zhaolifeng was ordered to make corrections
On May 13, the Shenzhen Securities Regulatory Bureau issued a decision on ordering corrective measures against Shenzhen Zhaolifeng Private Securities Fund Management Co., Ltd.
After investigation, Zhaolifeng engaged in private equity fund business activities in the following circumstances:
First, the company failed to carry out investment operations in accordance with the relevant private fund contracts and treated different investors of the same private fund unfairly, indicating that the company failed to fulfill its duty of prudence and diligence. Second, the management system for related-party transactions has not been established and improved. Third, there are false records in the information submitted. Fourth, there are major omissions in the information provided to investors, and material information that may affect the legitimate rights and interests of investors is not truthfully disclosed to investors in accordance with the contract. Fifth, the relevant information on investor suitability management is not properly kept.
The above situation violates the third paragraph of Article 3, the first paragraph of Article 28 and the first paragraph of Article 32 of the Regulations on the Supervision and Administration of Private Investment Funds (Decree No. 762 of the State Council, hereinafter referred to as the "Private Placement Regulations"), as well as the relevant provisions of Articles 24 and 26 of the Interim Measures for the Supervision and Administration of Private Investment Funds (Decree No. 105 of the CSRC). In accordance with the provisions of Article 42, Paragraph 1 of the Private Placement Regulations, the Shenzhen Securities Regulatory Bureau decided to take administrative supervision measures against Zhaolifeng to order corrections.
According to the Shenzhen Securities Regulatory Bureau, Zhaolifeng should improve the awareness of standardized operation, strengthen compliance risk management, and carry out in-depth and serious rectification of the above-mentioned violations. Zhaolifeng shall complete the rectification within 90 working days from the date of delivery of this administrative supervision measure and submit a rectification report to our bureau. If the correction is not made within the time limit, the Shenzhen Securities Regulatory Bureau will take further measures in accordance with the provisions of Article 42, Paragraph 1 of the Private Placement Regulations.
In addition, Wang Yanwei, as the legal representative, general manager and executive director of Zhaolifeng at the time, was responsible for the company's above-mentioned violations. In accordance with the provisions of Article 33 of the Measures for the Administration of Private Placements, administrative supervision measures such as issuing a warning letter were taken.
It is understood that Shenzhen Zhaolifeng Private Securities Fund Management Co., Ltd. was established in 2015 with a registered capital of 50 million yuan, and the institutional type is a private securities investment fund manager, with 6 full-time employees and a management scale ranging from 000 million to 500 million yuan.
Wang Yanwei, the legal representative, general manager and executive director of Zhaolifeng, worked in the securities business department of Guangfa Securities Handan Lingyuan Road from 2010 to 2016; In November 2016, Wang Yanwei joined the securities business department of Guodu Securities Handan Cong Taipei Road and served as the general manager of the business department; Since May 2019, he has worked in Hebei Branch of Zhongtai Securities Co., Ltd. as marketing director; He joined Mega Fortune in 2022.
Intensive regulatory action
On May 10, AMAC issued a number of disciplinary decisions, and three private equity firms, Northern Assets, Jiangsu Ruigu and Linling Assets, were punished.
According to the administrative penalty decision of the regulatory authority, Northern Assets conveyed improper benefits to public officials by providing equity holding facilitation. In December 2021, the People's Court made a criminal judgment, finding that Wang Xing, the person directly in charge of Northern Assets, had offered bribes on behalf of the company in order to seek improper benefits, and the circumstances were serious, constituting the crime of offering bribes by a unit. In addition, the irregularities of Northern Assets also include the failure of relevant practitioners to meet the registration requirements and the failure to update or report major matters in a timely manner.
Jiangsu Ruigu Private Equity Fund Management Co., Ltd. was revoked from its registration as a manager for failing to fully fulfill its investor suitability obligations, inaccurate fund filing information, failing to fulfill information disclosure obligations as required, misappropriating settlement funds raised by private equity funds in violation of regulations, and failing to fully cooperate with self-discipline inspections.
Shanghai Linling Asset Management Co., Ltd. was warned and suspended for three months for failing to truthfully disclose the leveraged operation of the fund and not having an independent office space.
In addition, on May 10, the AMAC announced that 9 private equity fund managers including Suzhou Shanyi Investment Management Co., Ltd. had abnormal business conditions and failed to submit special legal opinions that met the requirements within 3 months after the written notice was issued, and the association would cancel the registration of private equity fund managers of the 9 institutions. The deregistered private fund manager and relevant parties shall, in accordance with laws and regulations, the provisions of the China Securities Regulatory Commission, the relevant self-discipline rules of the association, and the fund contract, properly dispose of the assets of the fund under management, and protect the legitimate interests of investors in accordance with the law.
The Association reminds investors to continue to pay attention to the integrity and compliance of private fund managers, make fund investment decisions prudently, and safeguard their legitimate rights and interests through the dispute resolution mechanism and relevant legal channels agreed in the fund contract.
In the future, the Association will continue to uphold the basic policy of "supporting the good and limiting the inferior", continuously improve the integrity information recording mechanism of the private equity industry, and promote the compliance and healthy development of the industry.
Editor: Joey
Review: Chen Mo