Yupeng Investment was ordered to correct 4 violations, including not rating private equity funds

China Economic Network Beijing, March 22 Recently, the Anhui Securities Regulatory Bureau of the China Securities Regulatory Commission issued a decision on ordering corrective measures against Anhui Yupeng Investment Management Co., Ltd.

After investigation, the company has the following problems:

1. Investment operations are not carried out in strict accordance with the fund contract.

3. The risk rating of private fund products is not carried out.

4. Failure to update the information of practitioners registered for the record in a timely manner.

The above situation violated the provisions of Articles 4, 12, 17 and 25 of the Interim Measures for the Supervision and Administration of Private Equity Investment Funds, and in accordance with the provisions of Article 33 of the Interim Measures for the Supervision and Administration of Private Investment Funds, the Anhui Securities Regulatory Bureau decided to take administrative supervision measures against the company to order corrections.

According to the data, Anhui Yupeng Investment Management Co., Ltd. was established on January 21, 2016, the registered place is located in Shushan District, Hefei City, Anhui Province, and the legal representative is Hu Lingfei. The shareholders are Wang Jing and Xu Zhonglan, and the shareholding ratio is 55% and 45% respectively.

Relevant regulations:

Article 4 of the Interim Measures for the Supervision and Administration of Private Equity Investment Funds: Private fund managers and institutions engaged in private fund custody business (hereinafter referred to as private fund custodians) manage and use private fund assets, and institutions engaged in private fund sales business (hereinafter referred to as private fund sales institutions) and other private equity service institutions engaged in private fund service activities shall scrupulously perform their duties and perform the obligations of good faith, prudence and diligence.

Private fund practitioners shall abide by laws and administrative regulations, and abide by professional ethics and codes of conduct.

Article 12 of the Interim Measures for the Supervision and Administration of Private Equity Investment Funds: Qualified investors of private funds refer to units and individuals who have the corresponding risk identification ability and risk bearing capacity, invest in a single private fund with an amount of not less than 1 million yuan and meet the following relevant standards:

(1) Units with net assets of not less than 10 million yuan;

(2) Individuals whose financial assets are not less than 3 million yuan or whose average annual income in the last three years is not less than 500,000 yuan.

The financial assets referred to in the preceding paragraph include bank deposits, stocks, bonds, fund shares, asset management plans, bank wealth management products, trust plans, insurance products, futures rights and interests, etc.

Article 17 of the Interim Measures for the Supervision and Administration of Private Equity Investment Funds: A private fund manager who sells or entrusts a sales agency to sell a private fund on its own or entrusts a third-party institution shall conduct a risk rating of the private fund on its own initiative or entrust a third-party institution, and recommend the private fund to investors whose risk identification ability and risk bearing capacity match.

Article 25 of the Interim Measures for the Supervision and Administration of Private Equity Investment Funds: Private fund managers shall, in accordance with the provisions of the Asset Management Association, promptly fill in and regularly update the relevant information of the manager and its practitioners, the investment operation of the private fund under management and the use of leverage, and ensure that the content filled in is true, accurate and complete. Where major matters occur, they shall be reported to the Asset Management Association within 10 working days.

The private fund manager shall, within 4 months after the end of each fiscal year, submit to the Asset Management Association the annual financial report audited by the accounting firm and the basic information of the annual investment operation of the private fund under management.

Article 33 of the Interim Measures for the Supervision and Administration of Private Equity Investment Funds: Where private fund managers, private fund custodians, private fund sales institutions and other private equity service institutions and their practitioners violate laws, administrative regulations and the provisions of these Measures, the CSRC and its dispatched institutions may take administrative supervision measures such as ordering corrections, supervising conversations, issuing warning letters, and publicly condemning them.

The following is the original text:

Decision on ordering corrective measures against Anhui Yupeng Investment Management Co., Ltd

Anhui Yupeng Investment Management Co., Ltd.:

After investigation, your company has the following problems:

1. Investment operations are not carried out in strict accordance with the fund contract.

2. No material assessment has been made as to whether the investor meets the Criteria for Accredited Investors.

3. Private equity products are not rated at risk.

4. Failure to update the information of practitioners registered for the record in a timely manner.

The above situation violates the provisions of Articles 4, 12, 17 and 25 of the Interim Measures for the Supervision and Administration of Private Equity Investment Funds, and in accordance with the provisions of Article 33 of the Interim Measures for the Supervision and Administration of Private Equity Investment Funds, our bureau has decided to take administrative supervision measures against your company to order corrections. Your company should earnestly rectify the relevant problems and submit a written rectification report to our office within 1 month from the date of this decision. Our bureau will continue to pay attention to the implementation of your company's rectification in daily supervision.

If you are dissatisfied with these supervision and management measures, you may submit an application for administrative reconsideration to the China Securities Regulatory Commission within 60 days of receiving this decision, or you may file a lawsuit with a people's court with jurisdiction within 6 months from the date of receipt of this decision. During the period of reconsideration and litigation, the implementation of the above-mentioned supervision and management measures shall not be stopped.

Anhui Securities Regulatory Bureau

March 18, 2021