According to the content, Guoxin Securities Beijing Branch failed to perform its duties prudently to understand the information and situation of investors, fully revealed the risks to investors, and failed to fully implement the obligations of investors appropriateness management during the return visit to investors. According to the relevant laws and regulations, it is decided to take the administrative supervision measures of issuing warning letters.
The compliance problems of branches of securities companies are continuously exposed. According to public information, since 2020, 10 branches of securities companies have received punishment announcements from CSRC and local CSRC, including 10 business department tickets and 3 branch tickets.
In addition to Guoxin Securities, there are three securities companies, including Dongfang wealth securities, Xiangcai securities and Aijian securities, who have been punished for the appropriateness of investors.
Penalty for investors appropriateness violation
On June 19, the staff of Guoxin Securities Beijing Branch told time weekly that they had not received the notice of warning letter at present and did not know the relevant situation for the time being.
Previously, the 2019 annual report of Guosen Securities showed that the company carried out multiple compliance inspections on investor suitability management and other aspects in order to discover and resolve risks in time. He also said that it will continue to improve the level of investor suitability management, and continue to improve the anti money laundering mechanism.
On May 19, Jiangsu securities regulatory bureau took supervision and management measures for three business parts of Aijian securities, one of which was punished that employees provided securities investment advisory services through wechat group without signing Investment Advisory Service Agreement and risk disclosure letter with customers, and the business department did not fully understand customers in the process of sales companys asset management plan , did not carefully assess the appropriateness of investors.
Previously, on April 30, Xiangcai securities Harbin Zhongshan Road Securities Business Department was ordered by Heilongjiang securities regulatory bureau to take administrative supervision measures.
After investigation, the business department failed to prudently evaluate and audit the compliance and accuracy of the relevant materials and information provided by the customer in the process of suitability evaluation of QFII when recommending the collective trust plan to the customer, and sold the product without fully understanding the customer information.
In addition, when introducing the collective trust plan to customers through wechat, the employees of the sales department have improper statements such as there is no problem in cashing the product, the only risk is to end it ahead of time, and if it ends ahead of time, it will also calculate interest at 8% per annum and cash it.
The warning letter from Shenzhen Securities Regulatory Bureau received by the securities business department of Shenzhen Shennan Avenue of Dongfang wealth securities on March 17 shows that the business department fails to prudently check the appropriateness conditions of individual investors who have opened the trading authority of science and technology innovation board.
On June 21, a securities trader in Shanghai told the times weekly that Article 88 of the new securities law stipulates the relevant content of investor suitability management, which is also the first time that investor suitability management has appeared in the securities law, with legal level system guarantee.
On the same day, a securities trader in Shanghai explained to the times weekly that the management of investor appropriateness mainly includes the following aspects: first, requiring securities companies to comprehensively evaluate investors; second, requiring securities companies to evaluate the potential risks of investment products and services and inform investors as they are; third, requiring securities companies to provide appropriate products and services to appropriate investors Otherwise, it will bear adverse consequences; fourth, investors should also provide real information.
The reporter learned that according to the new securities law, if a securities company violates the regulations and causes losses to investors, it should bear the corresponding liability for compensation.
Hong Kong subsidiary is in constant turmoil
Recently, the news that the managing director of Guoxin Securities Hong Kong Investment Banking Department insulted her subordinates in the middle of the night was also widely spread in the industry.
Public information shows that Guoxin Hong Kong Financial Holding Co., Ltd. was established in November 2008. It is a wholly-owned subsidiary of Guoxin Securities incorporated in Hong Kong. It has three wholly-owned brand holding companies, namely, Guoxin Hong Kong brokerage, Guoxin Hong Kong financing and Guoxin Hong Kong asset management, which are engaged in brokerage, investment banking and asset management respectively.
According to a reporter from time weekly, the news said that a Hong Kong IPO project of Hong Kong investment banking department will be issued recently. The underwritten IPO company is Wing Tai bio, and Guoxin Hong Kong is one of the two sponsors of Wing Tai bio.
Previously, Guo Zhouwu, a former fund manager of Guoxin Hong Kong asset management, was banned from business for nine months, according to the SFCs announcement on May 28.
According to the announcement, during his tenure in Guoxin Hong Kong asset management, he concealed from his employer his actual interests and direct control or influence in two securities trading accounts held by one of his friends and one of his acquaintances in another brokerage firm. Guo Zhouwus trading activities in the two accounts violate the trading policy of Guoxin Hong Kong asset management.
As early as April 2019, the former head of brokerage business of Guoxin Hong Kong was also banned by the Hong Kong Securities Regulatory Commission from re investing in the industry by Su Xiqiang, the former head and head of retail brokerage business of Guoxin Hong Kong, for a period of 10 months due to the anti money laundering problem.
On February 18, 2019, the Hong Kong Securities Regulatory Commission announced that due to the violation of regulatory provisions on anti money laundering and terrorist fund raising by Guoxin Hong Kong brokers, it was publicly condemned by the Hong Kong Securities Regulatory Commission and fined HK $15.2 million.
Guoxin Hong Kong is the main platform for overseas business of Guoxin Securities, and its performance is not outstanding in recent years.
According to the data of Dongfang wealth choice, overseas revenue of Guosen Securities was 188 million yuan in 2018 and 169 million yuan in 2019.
However, in spite of the continuous turmoil in recent years, Guosen Securities has provided financial support for Hong Kong business in the latest fixed increase plan of 15 billion yuan. According to the fixed increase plan disclosed by the company in March this year, the investment direction of the raised funds will increase 900 million yuan to Guoxin Hong Kong Financial Holding Co., Ltd. One belt, one road, is used to supplement the capital of brokerage business, to support the capital contribution of the related projects of one way and one side related bonds and equity financing, and to expand the scale of the margin business and the input of information system construction. Guoxin Securities also said, the capital increase of Guoxin Hong Kong with the raised funds will help to further meet the needs of its H-share full circulation business, securities placement and underwriting business, expansion of margin business scale and other business, effectively break through the bottleneck of the development of Guoxin Hong Kong, further enhance the strength of the companys international business, and promote the rational layout and rapid development of international business. Source: responsible editor of times weekly: Wang Xiaowu_ NF
However, in spite of the continuous turmoil in recent years, Guosen Securities has provided financial support for Hong Kong business in the latest fixed increase plan of 15 billion yuan.
Guoxin Securities also said, the capital increase of Guoxin Hong Kong with the raised funds will help to further meet the needs of its H-share full circulation business, securities placement and underwriting business, expansion of margin business scale and other business, effectively break through the bottleneck of the development of Guoxin Hong Kong, further enhance the strength of the companys international business, and promote the rational layout and rapid development of international business.