original title:
The China Securities Regulatory Commission announced on New Year’s Eve three-dimensional punishment of China Merchants Securities: many people illegally speculated in stocks, and a warning letter was issued to the chairman
The Paper reporter Qi Yeyun
China Merchants Securities (600999.SH) was dealt with by the China Securities Regulatory Commission due to violations of laws and regulations such as the trading of stocks by multiple employees.
On February 9, the official website of the China Securities Regulatory Commission issued an announcement stating that recently, the China Securities Regulatory Commission organized inspections and law enforcement and daily supervision forces to investigate and deal with illegal activities such as stock trading by many employees of China Merchants Securities; it also emphasized that it must rely on criminal accountability, administrative penalties, Administrative supervision measures and internal accountability will implement three-dimensional punishment for China Merchants Securities.
Faced with the serious accountability of the regulatory authorities, China Merchants Securities responded that China Merchants Securities actively cooperated with the regulatory authorities during the investigation, expressed firm support for the above-mentioned penalty decision, and will seriously hold the employees involved accountable.
China Merchants Securities stated that in order to implement the requirements of laws and company systems that prohibit employees from buying and selling stocks, China Merchants Securities has started with the education of new employees, requiring all employees not to open securities accounts to buy and sell stocks in violation of regulations, and also monitor and audit securities accounts on a daily basis. Strengthen management and control. “The illegal and irregular behaviors of the employees involved were concentrated before 2021, and they were held under pseudonyms, which reflects that the company’s daily education was still not in place in the past, the management system was still deficient, and the supervision and accountability was not strong enough. We will learn from it deeply. Learn a lesson and make resolute and thorough corrections.”
The chairman was issued a warning letter
The announcement shows that the CSRC’s punishments include five major aspects. First, administrative penalties were imposed on 63 people, with a total fine of 81.73 million yuan, and one person was banned from the securities market for life; second, one person was transferred to the judicial authority for suspected insider trading. ; The third is to take administrative supervision measures against 46 people, of which it is planned to identify 3 people as inappropriate candidates, 5 people to be subject to supervisory interviews, and 38 people to be issued warning letters; the fourth is to China Merchants Securities, which is responsible for the management of employees. Administrative regulatory measures were taken to increase the number of compliance inspections, issue a warning letter to the company’s chairman, and conduct supervisory interviews with the two then-compliance directors, and urge China Merchants Securities to initiate internal accountability, interview relevant violators, and implement Full coverage of accountability.
The Paper noted that on the same day, the Shenzhen Securities Regulatory Bureau also issued more than 15 “Decisions on Administrative Supervision Measures” (referred to as “Decisions”), many of which involved China Merchants Securities and disclosed more details. The “Decision Letter” pointed out that after investigation, many employees of China Merchants Securities had engaged in illegal activities such as borrowing other people’s securities accounts to trade stocks for a long time, privately accepting clients’ entrustment to trade stocks, and entrusting others to trade stocks. Among them, Huo Da, as the chairman of China Merchants Securities, had Zhao Bin, as the then Compliance Director of China Merchants Securities, and Hu Yu, as the current Compliance Director, bear management responsibility for the relevant violations. In the end, the Shenzhen Securities Regulatory Bureau decided to take administrative supervision measures by issuing a warning letter to Huo Da, and to take administrative supervision measures of supervisory talks against Zhao Bin and Hu Yu.
The Shenzhen Securities Regulatory Bureau also issued a “Decision on Taking Measures to Order China Merchants Securities to Increase the Number of Internal Compliance Inspections.” After investigation, many employees of China Merchants Securities had engaged in illegal and illegal activities such as borrowing other people’s securities accounts to trade stocks for a long time, privately accepting clients’ entrustment to trade stocks, and entrusting others to trade stocks. The illegal activities were mainly concentrated before 2021.
The Shenzhen Securities Regulatory Bureau believes that during the aforementioned period, China Merchants Securities had the following problems in the management of employee behavior: First, it did not attach enough importance to and hold employees accountable for their stock buying and selling behavior; second, the monitoring and management of employee behavior was not in place; third, supporting facilities Information technology system construction is insufficient.
The Shenzhen Securities Regulatory Bureau further pointed out that the above problems reflected the inadequate compliance and internal control management of China Merchants Securities, and the Shenzhen Securities Regulatory Bureau decided to take administrative regulatory measures against China Merchants Securities by ordering an increase in the number of internal compliance inspections. From January 2024 to December 2024, an internal compliance inspection will be conducted every quarter, and a compliance inspection report will be submitted to the Shenzhen Securities Regulatory Bureau within 10 working days after each inspection.
“Punch on violations” if they show up
The China Securities Regulatory Commission emphasized that it is a basic requirement of the Securities Law that securities practitioners are not allowed to buy or sell stocks.
“In recent years, we have severely cracked down on illegal stock trading by securities practitioners. From 2019 to 2023, a total of 67 cases of illegal stock trading by practitioners were investigated and administrative penalties were imposed on 139 people. We strive to build a system of ‘dare not, cannot, and do not want’ to violate regulations A long-term mechanism for stock trading.” The China Securities Regulatory Commission said that in the next step, it will adhere to systematic thinking, draw inferences from one example, continue to strengthen institutional supervision, behavioral supervision, functional supervision, penetrating supervision, and continuous supervision, and continue to carry out in-depth work in collaboration with industry associations.
The first is to improve the system and mechanism. Formulate a special rectification work plan to severely crack down on illegal stock trading by securities practitioners in accordance with the law, consolidate the responsibilities of institutional entities, urge securities companies to strengthen internal monitoring, self-examination, self-correction and accountability mechanisms, implement compliance management for all employees, and achieve control over all branches Integrated vertical management of institutions and practitioners, each securities regulatory bureau will carry out special on-site inspections. Improve the investment behavior management rules for practitioners, urge institutions to improve internal control systems such as investment declaration, review, monitoring, and punishment, improve the investment behavior management mechanism, and further plug loopholes in the supervision system and implementation of securities practitioners.
The second is to strengthen supervision and law enforcement. We will punish violations as soon as they appear, strictly hold institutions with poor management and control accountable, strengthen a three-dimensional punishment system for violators, build a punishment mechanism that “violates one place, and is restricted everywhere”, strengthens notifications and warnings of violations, and carries out Special governance actions.
The third is to continue to purify the industry ecology. Adhere to the “two combinations”, carry out in-depth comprehensive management of industry culture construction, and urge institutions to “not cross the bottom line, not be mercenary, not eager for quick success, not deviate from reality, and not act recklessly”, adhere to honesty and trustworthiness, make profits with justice, and Be prudent, upright and innovative, and comply with laws and regulations. Improve the basic norms and codes of conduct for practitioners, establish and improve a classification list system for practitioners and a professional reputation management mechanism, and accelerate the formation of a “strict” atmosphere for practitioner management.
2024-02-11 06:45:00
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