CFIC Introduction
The China Securities Association reported six typical cases of bribery and seven cases of illegal participation in stock trading. The China Securities Association requires all companies to take the case as a reference, give full play to the warning and deterrent effect of the case, continue to strengthen the conduct requirements of employees, urge practitioners to adhere to the bottom line of compliance, practice in good faith and compliance, and promote the construction of a clean and upright securities industry ecology.
Original title: Bribery crimes, illegal stock speculation! Here comes the briefing
A reporter from the China Securities Journal learned from the industry that the Securities Association of China has collected and sorted out the relevant cases of bribery and illegal stock speculation by securities practitioners in recent years, and recently notified it in the industry to implement the comprehensive punishment mechanism for bribery in the capital market of the China Securities Regulatory Commission and strictly crack down on the illegal stock speculation of securities practitioners in accordance with the law, and strengthen the management of practitioners.
It is reported that the China Securities Association reported six typical cases of bribery and seven cases of illegal participation in stock trading. The China Securities Association requires all companies to take the case as a reference, give full play to the warning and deterrent effect of the case, continue to strengthen the conduct requirements of employees, urge practitioners to adhere to the bottom line of compliance, practice in good faith and compliance, and promote the construction of a clean and upright securities industry ecology.
Industry insiders believe that this measure reflects the strong commitment of the regulatory level to maintaining market fairness, transparency and the spirit of the rule of law. The notification of the case is a wake-up call for the entire industry, reminding every practitioner that regardless of their position, they must adhere to the bottom line of professional ethics and laws and regulations. This approach will help create a culture of compliance and integrity in the industry, and promote the long-term healthy and stable development of the securities market.
Six cases of bribery and seven cases of illegal stock speculation were reported
The China Securities Association reported six typical cases of bribery. Such cases reflect the existence of bribery within the securities industry, involving securities issuance, listing advisory, bond distribution and other links, and the relevant personnel are subject to legal sanctions.
Six typical cases of bribery include:
In the process of undertaking bond issuance business, Liu Moumou1 offered a bribe of 3 million yuan to the financial director of a group in T City in order to obtain an improper competitive advantage, and was sentenced to five years in prison and fined;
In the process of bond underwriting, Liu XX2 clearly knew and assisted others to obtain illegal benefits through state employee relations, constituting the crime of bribery, but because of his accomplice status and good attitude in admitting guilt, he was exempted from criminal punishment;
In order to contract IPO business, Wang Moumou offered a bribe of 2.45 million yuan to the then general manager of the company to be listed, and was sentenced to three years in prison with a four-year probation;
Chen Moumou and others offered bribes to bank insiders and non-state employees through the establishment of wealth management products, involving huge amounts, and many people were sentenced to fixed-term imprisonment and fines;
In the process of issuing urban investment bonds, Guan Moumou paid bribes many times in order to thank the relevant personnel for their help, and was finally sentenced and fined;
As the person in charge of the business department of a securities company and the actual controller of a number of investment companies, Dai XX sought improper benefits for a number of companies under his control, and offered millions of yuan in bribes to a number of state employees in the name of a company or an individual, and both his individuals and the company were severely punished by law.
The China Securities Association also disclosed in detail seven typical cases of illegal stock speculation by securities practitioners, highlighting the strict situation of industry supervision.
Seven typical cases of securities practitioners trading stocks in violation of regulations include:
He illegally borrowed other people's accounts to conduct stock transactions and privately accepted the entrustment of customers to buy and sell securities, and was given a warning, fined and confiscated illegal gains;
Sun Mouchun was also warned and fined by the local securities regulatory bureau for accepting the client's entrustment to manipulate the stock account transaction;
During his employment in securities and funds, Zhu bought and sold stocks without authorization and failed to declare his investment in accordance with the law, and his illegal gains were confiscated and a fine was added;
Zhou Moujie took advantage of his position to leak undisclosed information to imply that others were trading and personally borrowed other people's accounts to speculate in stocks in violation of regulations, and was fined by the local securities regulatory bureau;
Hu borrowed other people's accounts for stock trading for a long time, and was confiscated by the China Securities Regulatory Commission and fined for illegal gains;
Zhao Moujun used other people's accounts to buy and sell stocks without permission, and was also fined;
As an executive of a securities company, Xiong Moutao directly and indirectly manipulated multiple accounts to conduct large stock transactions to seek huge profits, seriously violated securities laws and regulations, and was finally banned from the securities market for life.
Industry insiders believe that the above-mentioned cases not only reveal the various methods used by securities practitioners to speculate in stocks in violation of regulations, but also demonstrate the firm determination of the regulatory authorities to maintain market order and crack down on illegal acts.
"Zero tolerance" for violations of laws and regulations in the securities market
It should be noted that in recent years, the illegal participation of securities practitioners in stock trading has become the focus and target of severe crackdown by the regulatory authorities, and it is also the core issue of self-examination and self-correction of securities firms. In early July, some media disclosed that in order to further strengthen compliance management, a leading brokerage firm in the industry has launched a three-year in-depth retrospective review plan, focusing on the stock trading accounts of its internal employees and their immediate family members, aiming to comprehensively investigate and curb any potential illegal stock speculation. It is understood that the brokerage has made full use of advanced scientific and technological means, including but not limited to high-precision technologies such as trading equipment locking and IP address tracking, to achieve accurate identification and tracking of the actual controller of the account, demonstrating the brokerage's firm determination to maintain market fairness and promote compliant transactions.
In recent years, the regulator has adopted a series of strict regulatory measures against illegal stock speculation by practitioners, reflecting a zero-tolerance attitude towards violations of laws and regulations in the securities market, and effectively deterring potential violations and maintaining the fairness, justice and transparency of the market through severe penalties and comprehensive regulatory measures.
According to the official website of the China Securities Regulatory Commission, at the beginning of this year, the China Securities Regulatory Commission organized inspection and law enforcement, and daily regulatory forces focused on investigating and prosecuting violations of laws and regulations such as stock trading by a number of employees of China Merchants Securities. Rely on criminal accountability, administrative punishments, administrative supervision measures, and internal accountability to carry out three-dimensional punishments. First, administrative penalties were imposed on 63 people, with a total fine of 81.73 million yuan, and 1 person was banned from the securities market for life. The second is to transfer one person suspected of insider trading to the judicial authorities for handling. The third is to take administrative supervision measures against 46 people, of which 3 people are to be identified as inappropriate persons, 5 people will be subject to supervision talks, and 38 people will be issued warning letters. Fourth, China Merchants Securities, which is responsible for the management of employees, will take administrative supervision measures such as ordering an increase in the number of compliance inspections, issuing a warning letter to the chairman of the company and taking regulatory talks with the two then compliance directors, and urging China Merchants Securities to initiate internal accountability, interview relevant violators, and implement full accountability coverage.
Source of this article: China Securities Journal
Author: Zhao Zhonghao
WeChat editor: Wang Qian
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