Shidi Securities Regulatory Bureau fined 40 private equity firms in one month of operation

category:Finance
 Shidi Securities Regulatory Bureau fined 40 private equity firms in one month of operation


On the evening of August 23, the official website of the Securities Regulatory Commission (SFC) published an article disclosing that it had recently organized a special activity for private equity investorseducation.

According to the introduction of the Securities Regulatory Commission, in order to help investors correctly understand private equity funds, strengthen risk awareness and improve their self-protection ability, recently, with the theme of distinguishing truth from falsehood, recognizing risk? Being a rational private equity investor, the Commission has organized a nationwide special education campaign on private equity funds.

Special Education for Private Fund Investors

It is understood that the activities mainly include three aspects.

Strengthen Private Equity Supervision

Chinese journalists from securities firms have combed the official websites of various securities regulatory bureaus and found that in less than a month since August, 10 securities regulatory bureaus have taken regulatory measures against a total of 40 private equity funds in their jurisdictions.

In addition to the above three areas, the other areas of private equity institutions are regulated by four in Hunan, four in Chongqing, three in Heilongjiang and Anhui, one in Ningxia, and one in Jiangsu and Qingdao.

Chinese journalists from securities firms found that the violations involved at least five types, including failure to implement the requirements of investor appropriateness management, staff not qualified to practise, failure to assess the risk of private equity funds, violations of information disclosure, and non-filing of private equity funds.

Violation 1: Failure to implement investor appropriateness management requirements

Investor appropriateness is the key requirement of financial institutionsexhibition industry in recent years, but some private equity institutions have not been well implemented, and the identity of investors has not been verified in the process of fund raising. It is difficult to judge whether the final investor is a qualified investor, or whether the sales target clearly does not qualify for purchasing the products of private equity funds. Such violations have been common in the recent batch of penalized private equity firms.

For example, the Anhui Securities Regulatory Bureau disclosed on August 22 that the amount of financial assets in the asset certificates of individual investors of Zhuohui Shengjing Investment Management Center (Limited Partnership) in Wuhu did not meet the eligible investor standard. This means that the private sales customer is not a qualified investor.

On August 21, Anhui Saiberoke Creative Equity Investment Management Co., Ltd. received the decision on regulatory measures. There is a lack of asset certification documents for institutional investors in the archives, which also exists this problem.

The decision issued by Hunan Securities Regulatory Bureau on August 13 shows that there is a lack of implementation of the appropriate management system in Hunan Ruiqi Hui Asset Management Co., Ltd. Specific issues include:

Quanzhou Fengchuang No. 1 Venture Capital Partnership (Limited Partnership) managed by Quanzhou Fengqiao Investment Management Co., Ltd. raised funds from two non-qualified investors.

Violations II: Staff members do not qualify for employment

On August 23, Heilongjiang Securities Regulatory Bureau disclosed that some fund practitioners in the private futures trading department, the stock investment and research department, the fund department and the wind control department did not qualify as fund practitioners and violated relevant regulations during the on-site inspection of Harbin St. Linkage Investment Management Co., Ltd.

Violation 3: Failure to Rating Private Equity Funds

On August 5, Fujian Securities Regulatory Bureau issued a decision on supervision measures to Quanzhou Fengqiao Investment Management Co., Ltd. which stated that the company did not sell two private equity funds, such as Yongchun Fengqiao Shared Equity Investment Center (Limited Partnership), Quanzhou Fengchuang No. 1 Venture Capital Partnership (Limited Partnership), by itself or by itself. Third-party agencies are entrusted with the risk rating of the above two private equity funds.

Violations 4: Violations of Information Disclosure

The Jiangsu Securities Regulatory Bureau announced on August 19 that the partnership of Changzhou Yongxuan Resources Equity Investment Fund Management (Limited Partnership) has the following problems in its private equity fund business: First, it fails to disclose important information about fund investment to investors as stipulated in the contract, which violates the Interim Measures for Supervision and Management of Private Investment Funds. u300b Article 24. Second, failing to timely fill in and regularly update relevant information about managers and their employees in accordance with the provisions of the Fund Industry Association violates Article 25 of the Interim Measures for the Supervision and Management of Private Investment Funds.

Violations 5: Private Funds Not Recorded

Fujian Securities Regulatory Bureau issued a paper on August 6 that it was found that the private equity fund managed by Quanzhou Dishan Equity Investment Management Partnership (Limited Partnership) was not filed by Shenzhen Kaixin Oriental Investment Partnership (Limited Partnership) in the China Securities Investment Fund Association, violating Article 8, paragraph 1, of the Interim Measures for the Supervision and Management of Private Investment Funds. The provisions of the paragraph.

Two other private equity firms in Fujian have the same problem.

Private fund managed by private Yuntong Star (China) Wealth Management Co., Ltd., Fuzhou Yuntong Star Auspicious Investment Partnership (Limited Partnership), and private fund Quanzhou Fengchuang No. 1 Venture Capital Partnership (Limited Partnership) managed by Quanzhou Fengqiao Investment Management Co., Ltd., are not in Chinas securities investment fund industry. Association for the record.

Source: Liu Song_NBJ9949, China Responsible Editor of Securities Dealers