Under the constant improvement of various systems, Chinese reporters of securities companies have found that since this year, practitioners have been punished for their integrity problems. From the perspective of discipline violations, including the disclosure of regulatory investigation information by the employees of the business department, the promise of new share earnings, and the customer disputes caused by the integrity of investment banking employees, etc., related companies also encountered regulatory roll call due to various behaviors of employees.
In fact, in the aspect of honest employment, the judgment scale of securities industry is more and more strict. From the perspective of the industrys most easily touched transmission of illegitimate interests, each company is different. Recently, some securities companies have announced the latest integrity management system. For example, offering a gift with a single value of more than 300 yuan to public officials, customers, potential customers under negotiation or other stakeholders constitutes the transmission of improper interests. Securities practitioners should also pay attention to it to guard against violations.
Frequent punishment for the integrity of the securities industry
The word incorruptible seems to be a moral code that constrains the superiors. In essence, it is a self-discipline standard that all walks of life should abide by in the new era. For securities practitioners, the same applies.
In the decision, Fujian securities regulatory bureau pointed out that industrial securities should seriously study the relevant laws and regulations and self-discipline rules, strengthen the internal control of investment banking business, strictly regulate the employees practice behavior, take effective measures to prevent employees moral hazard, and urge employees to practice in accordance with the law and abide by the bottom line of honesty.
At the beginning of November, Huaan securities was also under supervision due to employees practice behavior. On November 6, Anhui Securities Regulatory Bureau ordered Huaan securities to correct and increase the number of internal compliance inspections. The causes of the violations show that, firstly, due diligence of Huaan securities in the listing application and continuous supervision work of OSHA power are not sufficient, the core control is not strict enough, and the continuous supervision is not responsible enough; secondly, the construction of risk control mechanism of Honest Employment of Huaan securities is not perfect, and there is no effective constraint on the standardization of employees professional behavior.
For example, in May this year, song Da, the former person in charge of Inner Mongolia Branch of Pacific Securities, was identified as inappropriate by the Inner Mongolia securities regulatory bureau, and he was not allowed to serve as the director, supervisor, or head of a branch of a securities company for five years. In terms of specific reasons, song Da actually controlled and operated an investment company and engaged in other profit-making activities when he was in charge. He was suspected of committing a crime and was taken compulsory measures by the judicial department. In the same month, Pacific Securities was ordered by Yunnan securities regulatory bureau to correct and increase the number of internal compliance inspections due to problems in the management of Inner Mongolia Branch.
In June this year, Zhejiang Securities Regulatory Bureau found that Wang Weidong, an employee of Zhejiang securities business department, during his term of office, provided convenience such as introducing customers, transferring securities account numbers and passwords, calculating profits and losses, and collecting remuneration for clients to entrust others to buy and sell stocks, and leaked regulatory investigation information. In this regard, Zhejiang Securities Regulatory Bureau issued a warning letter to Wang Weidong, which was recorded in the integrity file of the securities and futures market.
The red line of honest and clean work should not be touched
With more and more strict supervision of capital market, financial anti-corruption and rectification of chaos have become the basis for the steady development of securities and futures industry. At a time when various regulatory systems are constantly in place, the red line of honest employment must not be trampled on.
As early as June 2018, China Securities Regulatory Commission (CSRC) officially issued the Regulations on the integrity of securities and futures business institutions and their staff and opinions on strengthening the risk prevention and control of securities companies engaging third parties in investment banking business. At that time, Chang depeng, a spokesman for the CSRC, said that the SFC would comprehensively promote financial anti-corruption, make every effort to rectify the chaos in the industry, and reshape the environment of the securities and futures industry with a clean atmosphere.
Specifically, the Regulations on clean and honest employment includes five aspects: first, to clarify the scope of application and basic requirements; second, to strengthen the main responsibility of institutional control; third, to clarify specific requirements and establish the red line of practice; fourth, to highlight the key norms of investment banking business; fifth, to increase accountability and formulate specific penalties for violations.
From the above violation cases, most of the relevant practitioners have violated Article 10 of the regulations on Incorruptible employment, which states that the staff of securities and futures operating institutions shall not seek illegitimate interests, including the following situations:
uff081uff09 Directly or indirectly receiving or demanding property or interests from others in the form specified in Article 9;
uff082uff09 Directly or indirectly use the inside information, unpublished information, trade secrets and customer information provided or obtained by others to seek benefits;
uff083uff09 To seek profits by inducing customers to engage in unnecessary transactions and using clients entrusted assets for unnecessary transactions;
uff085uff09 Illegal use of power to provide convenient conditions for close relatives or other interested parties to engage in profit-making business activities;
In March this year, the China Securities Association also issued the implementation rules for the integrity of securities business institutions and their staff, which clarifies the main responsibilities for the prevention and control of the risks in the Honest Employment of securities business institutions, requires the securities business institutions to sort out the risk points of the Honest Employment of all major business lines, clarify the punishment mechanism, and distinguish between reasonable marketing activities according to law and the behavior of seeking or delivering improper interests, institutional responsibilities and Personal responsibility.
Integrity and self-discipline written into the cultural construction initiative
Looking back on the past, the most well-known case of discipline violation in the securities industry in recent years is Bian Xiaolei, director of the business department of the former fixed income financing headquarters of Shenwan Hongyuan securities. Bian Xiaolei was sentenced to two years and six months imprisonment in August 2017 because he illegally received a benefit fee of 1.5 million yuan in zhonghengtongs private debt project, which constituted the crime of bribery of non-state personnel.
Since then, Shenwan Hongyuan securities has expelled Bian Xiaolei from the party and administratively, and deducted the performance salary and other deferred salary in 2017. The China Securities Association has also taken disciplinary action against Bian Xiaolei by canceling the practice certificate, which is also the first handling notice under the new regulations on clean employment.
Bribery, of course, is absolutely prohibited in the culture of honesty and self-discipline. The provision of tourism, banquets, entertainment, fitness and work arrangements to stakeholders is also a violation of the integrity provisions. The indecent dinner incident of Founder Securities, which once caused a great stir in the industry, is the confirmation of this clause. At that time, Hunan securities regulatory bureau pointed out that Ma Jun, as the candidate of the 16th new wealth best analyst, paid for the dinner party expenses, and the dinner party members had the right to vote, which constituted the fact that he delivered unfair interests to other stakeholders, and violated the regulations on honest employment, and took regulatory interview measures against him.
In November 2019, the China Securities Association issued a proposal on the cultural construction of the securities industry, including integrity and self-discipline into the scope of cultural construction. China Securities Association proposes that we should adhere to integrity and self-discipline, and carry forward the clean and healthy atmosphere. Efforts should be made to cultivate a clean and honest culture in the industry, maintain a clean and cool working relationship and customer relationship, build a new pro and Qing government business relationship, and promote the formation of a good market ecology. We should consciously resist the improper behaviors such as offering and accepting bribes, abusing power for personal gain, and transferring interests. We should have discipline and rules, cherish the reputation of the industry, and always maintain the fine tradition of hard work, diligence and thrift.
uff081uff09 Provide cash gifts, gifts, real estate, automobiles, securities, equity, commission return and other properties, or provide convenience for holding on behalf of the above-mentioned acts;
uff082uff09 Provide tourism, banquets, entertainment and fitness, work arrangements and other benefits;
uff084uff09 Provide insider information, unpublished information, trade secrets and customer information directly or indirectly to others, and express or imply others to engage in relevant trading activities;
When it comes to gift money and gift, how to grasp the scale? In this regard, each company is different. According to a survey conducted by Chinas securities companies, a large securities firm in Beijing will take 2000 yuan as the standard of discipline violation. If the amount exceeds this amount, it will be seriously dealt with, two Chinese will be investigated.. Similarly, some securities practitioners say that the standard set by their company is 1000 yuan. In addition, recently, Guoyuan securities also announced the latest incorruptible management system. According to the content of the disclosure, offering a single gift worth more than 300 yuan to public officials, customers, potential customers under negotiation or other stakeholders constitutes the transmission of improper interests. In the industry culture construction in full swing, integrity and self-discipline has become the foundation of securities companies. @All securities practitioners need to do and cherish it. Source of this article: Yang Bin, responsible editor of securities companies in China_ NF4368
When it comes to gift money and gift, how to grasp the scale? In this regard, each company is different. According to a survey conducted by Chinas securities companies, a large securities firm in Beijing will take 2000 yuan as the standard of discipline violation. If the amount exceeds this amount, it will be seriously dealt with, two Chinese will be investigated.. Similarly, some securities practitioners say that the standard set by their company is 1000 yuan.
In addition, recently, Guoyuan securities also announced the latest incorruptible management system. According to the content of the disclosure, offering a single gift worth more than 300 yuan to public officials, customers, potential customers under negotiation or other stakeholders constitutes the transmission of improper interests.
In the industry culture construction in full swing, integrity and self-discipline has become the foundation of securities companies. @All securities practitioners need to do and cherish it.