It is worth noting that the stock pledge business has always attracted the attention of the market, and the regulatory measures for this kind of securities industry violating the rules and regulations have also been upgraded. During the year, Fortune Securities, China Post Securities and Wanlian Securities have been eaten because of the non-standard stock pledge business.
Wealth Securities Year
Three tickets for eating
Fortune Securities has been issued a regulatory warning letter, mainly due to the fact that Fortune Securities failed to track the operation, finance, external guarantees and litigation of the integrator continuously and effectively during the period of repurchase in the course of carrying out the stock pledge business.
Hence, the Hunan Securities Regulatory Bureau formally issued a regulatory warning letter to Fortune Securities on September 9.
In response, the reporter of the Securities Daily learned that the relevant provisions of the Regulations on Compliance Management of Securities Companies and Securities Investment Fund Management Companies violated by Fortune Securities are as follows: Securities Fund operating agencies should operate in compliance, diligently and conscientiously, adhere to the principle of customer interests first, and abide by the following basic requirements Fully understand customers basic information, financial status, investment experience, investment objectives, risk preferences, integrity records and other information and timely update.
Securities Daily reporter found that since this year, Fortune Securities has received frequent regulatory fines. On March 14, 2019, the Securities Business Department of Beijing Chaoyang East Third Ring Road was ordered by the Beijing Securities Regulatory Bureau to correct its supervision measures because of the abnormal trading behavior entrusted by different clients under the same brokers name at the same IP and MAC address on the same day.
On May 14, Fortune Securities was ordered by Hunan Securities Regulatory Bureau to increase the number of internal compliance checks due to irregularities in directional asset management operations. In addition, the regulatory warning letter decided that Fortune Securities has received three fines in this year, including brokerage business, asset management business and credit trading business.
According to the data of the Securities Industry Association, the operating income of Fortune Securities in 2018 was 575 million yuan, a decrease of 42.12% compared with the previous year, and the net profit was -233 million yuan, a decrease of 324.25% compared with the previous year. The net profit ranked second among 131 securities firms.
Supervision of Stock Right Pledge Business of Securities Firms
In fact, since this year, the regulatory authorities have continued to hit hard and severely punish intermediaries for violations of laws and regulations. Since this year, there have been many cases of securities firms that have been investigated or punished for the irregularity of stock pledge exhibition or wind control.
According to incomplete statistics from the Journal of Securities, in the second half of the year, three securities firms have been punished by the regulatory authorities for the stock pledge business.
In August, Shaanxi Securities Regulatory Bureau adopted a regulatory penalty decision ordering China Post Securities to rectify because it did not formulate the corresponding internal system for the specific pledge rate adjustment criteria of each project, and the specific pledge rate estimation was arbitrary, and the clients financing purposes were not tracked and checked. In August, Shaanxi Securities Regulatory Bureau adopted a regulatory penalty decision ordering the rectification of China Post Securities.
The decision on administrative penalty issued by the SFC shows that there are some problems in the internal control of China Post Securities, such as equity pledge repurchase business, asset management and bond trading business.
In addition, Wanlian Securities received a warning letter from Guangdong Securities Regulatory Bureau in August this year. It points out that there are some defects in due diligence of the integrator in the course of carrying out stock pledge repurchase transactions in Wanlian Securities.
Since this year, the regulatory authorities have strengthened supervision and management of securities companiesstock pledge business. Recent on-site verification shows that there are still some problems in securities companies stock pledge business, such as unclear business positioning, weak risk awareness, lax audit control, incomplete due diligence and formality of risk management after loan. Supervisory authorities stressed that in the next step, the Securities Regulatory Commission and the Securities Regulatory Bureau will continue to strengthen the supervision and on-site inspection of stock pledge business in securities companies, and the existing problems will be dealt with strictly according to law.
Source: Liable Editor of Securities Daily: Yang Qian_NF4425