Two tickets in two months! Southwest Securities Shenzhen old business department punished

category:Finance
 Two tickets in two months! Southwest Securities Shenzhen old business department punished


Article 4 of the Interim Provisions on securities investment consulting business stipulates that securities companies, securities investment consulting institutions and their personnel shall abide by the principle of good faith and provide securities investment consulting services to customers diligently and prudently. Lu Hongjun is being punished for violating this rule.

A securities firm compliance officer told the associated press that the investment adviser was punished for his lack of diligence, which is likely to be due to his improper or too absolute investment opinions when providing investment advisory services to customers, resulting in misleading marketing leading to customer losses.

The securities firms compliance officer said that in recent years, there have been many cases of punishment due to violations of regulations by investment advisers, and their professional ability is essential. If there is any violation, the supervision will first check whether it has the corresponding investment advisory qualification, which is also the necessary prerequisite for recommending shares to customers. In the business process, the investment consulting practitioners should avoid publishing such absolute investment opinions as 100% profit, which is also the protection for investors and practitioners themselves. In order to avoid compliance risks, many brokers have stopped their recruitment expansion, and some brokers have almost fully cleared. If the company is unable to develop due to the violation of investment regulations, the performance of the company will be damaged, and the career of the individual practitioners will also be affected.

This year, the regulator will pay more attention to investor education, improve the awareness of investor risk prevention, and let investors control the risk within their own tolerance, the compliance officer told reporters

A securities business department employee said that his securities business department only has the marketing personnel who are mainly responsible for opening accounts for customers and introducing assets. Most of his job titles are financial planner or customer manager. The investment consulting service is provided by the headquarters investment consultant, but the marketing personnel must also have the investment consulting qualification. In doing so, he said, he was responsible for investors and practitioners. Professional things should be done by professional people..

According to the analysis of several tickets issued by China Securities Regulatory Commission (CSRC) since 2020, the associated press of Finance found that the company was carrying out the activities of recommending shares without license, failing to report the major information of the companys operation to CSRC in time, failing to evaluate the appropriateness of investors, misleading marketing, inconsistency between the platform disclosure of investors and the actual situation, imperfect customer information, insufficient effectiveness of trace management, and weak compliance The red line often touched in the process of securities investment consulting business.

In 2020, the senior business department of Southwest Securities has been fined twice for the violation of investment consulting regulations

The reporter noted that this is the second ticket that Southwest Securities Business Department received from Shenzhen Securities Regulatory Bureau for violation of regulations since 2020.

On March 17, Shenzhen Securities Regulatory Bureau issued the decision on ordering Southwest Securities Co., Ltd. Shenzhen Shennan Avenue Securities Business Department to take corrective measures, which showed that the business department had the behavior of private investment consultants handling securities transactions on behalf of customers, the business department failed to effectively implement compliance management, and there were problems such as imperfect internal control. Shenzhen Securities Regulatory Bureau decided to take measures against the business department Supervision and management measures for ordering correction. This is the first ticket issued by Southwest Securities Regulatory Bureau since the new securities law came into effect on March 1. The companys internal control system has encountered challenges.

According to the public information, the securities business department of Shenzhen Shennan Avenue of Southwest Securities Co., Ltd. was established on February 10, 1995, and its business scope includes securities brokerage, securities investment consulting, financial consulting related to securities trading and securities investment activities, securities investment fund sales on a commission basis, financial products on a commission basis, financing and securities, and providing intermediate introduction services for futures companies.

The reporter noted that the securities business department of Shenzhen Shennan Avenue of Southwest Securities Co., Ltd. was one of the earliest established business departments of Southwest Securities and one of the two business departments established by the company in Shenzhen.

According to the analysis of several tickets issued by China Securities Regulatory Commission (CSRC) since 2020, the associated press of Finance found that the company was carrying out the activities of recommending shares without license, failing to report the major information of the companys operation to CSRC in time, failing to evaluate the appropriateness of investors, misleading marketing, inconsistency between the platform disclosure of investors and the actual situation, imperfect customer information, insufficient effectiveness of trace management, and weak compliance The red line often touched in the process of securities investment consulting business.

In 2020, Shenzhen Securities Regulatory Bureau has issued six penalties for violation of regulations by investment consultants, and two companies have suspended new customers for three months

According to the official website of the Shenzhen regulatory bureau, since 2020, the Shenzhen Securities Regulatory Bureau has issued six penalties for the violation of investment consultants regulations. Among them, Shenzhen Shennan Avenue Securities Business Department of Southwest Securities accounted for two, and four of the six penalties occurred in March after the implementation of the new securities law.

In addition to the two tickets issued by Southwest Securities Business Department, the owners of the other four tickets are: Shenzhen Luojia Investment Consulting Co., Ltd., Shenzhen YOUPIN Investment Consulting Co., Ltd., Shenzhen xinrand Securities Investment Consulting Co., Ltd. and Shenzhen Qifu Securities Investment Consulting Co., Ltd. Shenzhen Securities Regulatory Bureau has taken measures to suspend Luojia investment and Qifu securities from adding new customers for three months, and has taken measures to order the superior investment adviser and shenxinrand to make corrections.

The reporter noted that the violations in the investment consulting business of four companies mainly include: the introduction of the service account to the personal information of the operators is inconsistent with the actual situation, internal control defects, unlicensed stock recommendation, misleading marketing, inadequate investor appropriateness management, imperfect customer information, and insufficient effectiveness of trace management.

On March 11, Shenzhen Securities Regulatory Bureau took supervision and management measures to order Shenzhen Luojia Investment Consulting Co., Ltd. to suspend new customers for three months. The illegal behaviors of Luojia investment include the following six items: the company established Diwang branch in November 2018 and failed to report as required; in the electronic contract for investment advisory products signed by some clients, the conditions and methods for termination or cancellation of the agreement stipulated in Article 14 of the Interim Provisions on securities investment advisory business and within 5 working days from the date of signing the agreement are missing, The customer may propose the necessary terms such as terminate the agreement by written notice; the customers identity has not been fully verified, the service fee has actually been transferred from anothers bank account, the contract signed name and communication record are inconsistent, etc.; the employee information has not been disclosed on the business site and the companys website; the company has not completely kept the chat record of communication with the customer in the marketing process, No spot check has been conducted on the marketing and customer service of employees, no audit record has been made for the use of the companys official seal, no audit record has been made for the investment proposal and the published securities review articles; there are inaccurate and incomplete daily regulatory information reporting.

On March 6, Shenzhen securities regulatory bureau continuously took supervision and management measures to order Shenzhen YOUPIN Investment Consulting Co., Ltd. and Shenzhen xinrand Securities Investment Consulting Co., Ltd. to make corrections. There are three aspects of violations of superior product investment: on the Internet investment consulting platform operated by the company, the introduction of individual investment consulting service accounts to operators personal information is inconsistent with the actual situation; the control over the signing of the electronic agreement of the securities investment consulting service agreement is insufficient, and the signing time of the partial agreement is later than the time when the investors pay the consulting fees to the company; individual publicity materials There is a lack of prudence in the propaganda of past investment performance.

On January 15, Shenzhen Securities Regulatory Bureau took supervision and management measures to order Shenzhen Qifu Securities Investment Consulting Co., Ltd. to suspend new customers for three months. The main violations include the following four aspects: the marketing personnel of the company mentions the product income in the process of communication with customers; the staff who do not have the qualification of investment consultant practice recommend individual shares to customers; the number management of the securities investment consultant service agreement signed with customers is not carried out, and individual customers pay first, then carry out risk assessment and agreement signing The management of wechat and telephone communication records between marketing personnel and customers is insufficient, the management of wechat records and telephone records is imperfect, the companys investment consultants did not have a review in the process of publishing the stock recommendation articles on the compound interest master app developed by the company, the customers complaint handling management is imperfect, and the data is not filed and managed.

Many local securities regulatory bureaus have taken measures to suspend new customers for up to one year

The regulatory authorities are also increasing the penalties for violations in the process of investment advisory business.

On February 25, Shanghai Securities Regulatory Bureau took supervision and management measures to order Hainan Hong Kong Macao Information Industry Co., Ltd. Shanghai branch to make corrections and suspend nine months of new customers. In the process of developing securities investment consulting business, Hainan Hong Kong and Macao Information Industry Co., Ltd. has the following violations: first, it has not formulated an internal management system for investors appropriateness and has not evaluated the appropriateness of investors; second, it has not reported the changes of business places and securities investment consulting practitioners on time; third, it has imperfect business system and internal control management and compliance management The fourth is to provide securities investment advisory services without signing a securities investment advisory service agreement with customers; the fifth is to leave the mark management effectiveness is insufficient; the sixth is to not carry out information publicity as required.

On February 20, Shanghai Securities Regulatory Bureau took the supervision and management measures of ordering Shanghai Asian Business Investment Consulting Co., Ltd. to make corrections and suspending new clients for six months. In the process of carrying out securities investment consulting business, Shanghai Asian business has the following illegal behaviors: first, conducting false, untrue and misleading marketing publicity to customers and promising to guarantee profits; second, some marketing personnel provide securities investment suggestions to customers without securities investment consulting qualification; third, quoting information or materials when providing investment consulting services without indicating Office and copyright owner, did not state the issuer and time of issuing the quoted Securities Research Report; fourth, did not report the change of business place in time; fifth, did not inform the customer of the name of the securities investment consultant and its securities investment consulting qualification code and other information in the process of providing the securities investment consulting service; sixth, there are defects in internal control, the securities investment consulting business management system and compliance The regulation management and risk control mechanism are not perfect; seventh, the business promotion, service provision and other links are not completely marked, some marketing marks do not correspond to product types, and the effectiveness of mark management is insufficient.

On February 20, Sichuan Securities Regulatory Bureau took the regulatory measures of ordering Hunan Jujing Securities Investment Consulting Co., Ltd. Tianfu New Area branch to suspend the new customers for six months. The violations include: some staff in the provision of securities investment consulting services do not have the qualification for securities investment consulting practice; there are false, untrue and misleading marketing publicity in the industry; securities investment The consultant did not carry out the mark management as required in the provision of services.

On May 15, China Securities Investor Protection Fund Corporation issued the blue book on investor protection in Chinas capital market in 2019, which shows that in terms of investor protection in securities companies, the security protection of investors securities assets by securities companies in 2019 remains stable, but some securities companies still have many problems in the operation and maintenance of trading system, and the level of compliance management Further improvement is needed. With the increasing protection of investors, the investment supervision of securities companies and securities investment consulting companies will be strengthened in the future. Laws and regulations will become more and more strict, a financial industry practitioner told reporters for many years.

Source: CFA editor in charge: Guo Chenqi, nbj9931