Regulatory action! Guangdong Securities Regulatory Bureau issues six "penalty tickets" for a securities institution in one day for management | related | penalty tickets

On August 1st, the official website of Guangdong Securities Regulatory Bureau showed that six administrative supervision and management measures were issued to the Guangdong branch of Everbright Securities and its affiliated business departments, as well as relevant responsible persons, targeting multiple violations such as assisting customers in lending securities accounts, promising to bear losses to customers in violation of regulations, and demanding customer securities account passwords.

Specifically, according to the disclosure of Guangdong Securities Regulatory Bureau, the Yunfu Xinxing Liyuan Road Securities Business Department of Everbright Securities has engaged in the following three violations:

Firstly, the original person in charge Zhang, employees Li Xin, Ye Hua, and others assisted clients in lending securities accounts to provide intermediaries and convenience for financing to others, and promised to bear losses to clients in violation of regulations.

Secondly, some employees have situations such as providing answers to the Science and Technology Innovation Board test questions to customers, requesting securities account passwords from customers, sending follow-up questions to customers, and providing response criteria.

Thirdly, failure to timely report major issues such as customer collective complaints to Guangdong Securities Regulatory Bureau in accordance with regulations.

The Guangdong Securities Regulatory Bureau pointed out that the relevant violations reflect the inadequate compliance management and imperfect internal controls of the business department. The Guangdong Securities Regulatory Bureau ordered the business department to conduct internal compliance inspections every 6 months within 1 year and submit compliance inspection reports.

For the three employees who assist clients in lending accounts and promise to bear losses in violation of regulations, the Guangdong Securities Regulatory Bureau has determined that they are inappropriate candidates. Among them, Zhang is not allowed to serve as a director, supervisor, senior management, or branch manager of a securities company for two years, and Li and Ye are not allowed to serve as customer development services related positions in a securities company for one year. In addition, employee Ye Mousheng, who provided answers to the Science and Technology Innovation Board test questions to customers, was also issued a warning letter.

At the same time, the Guangdong Securities Regulatory Bureau directly pointed out that Everbright Securities Guangdong Branch bears direct management responsibility for the failure of internal control over compliance management and integrity in its business operations.

Everbright Securities response: has immediately ordered self inspection and rectification

Everbright Securities responded to reporters that the company attaches great importance to the above-mentioned issues and has immediately ordered the Guangdong branch and relevant business departments to conduct self inspection and rectification of business development and compliance management, and initiated investigations and accountability of relevant personnel. At the same time, the company will take this as a warning and continue to strengthen special self inspection and rectification throughout the company, as well as strengthen compliance training for practitioners, continuously improve the construction of internal control compliance systems and control of professional behavior.

According to public information, Everbright Securities was established in 1996 and is one of the first three innovative pilot securities companies approved by the China Securities Regulatory Commission. From its performance, the recent performance report released by Everbright Securities shows that in the first half of this year, the company achieved a revenue of 6.184 billion yuan and a net profit attributable to shareholders of the listed company of 2.396 billion yuan, an increase of 15.09% and 13.67% compared to the same period last year, respectively.

Everbright Securities faces consecutive fines

Recently, Everbright Securities has been issuing numerous fines.

In June of this year, the Jiangsu Securities Regulatory Bureau stated that Everbright Securities, as the sponsor institution for the initial public offering of Naxin Micro and Dike Shares, failed to strictly comply with relevant regulations and requirements for continuous supervision during the continuous supervision process, and was therefore subject to administrative supervision measures such as issuing warning letters. The Jiangsu Securities Regulatory Bureau will continue to monitor the continuous supervision work of Everbright Securities on listed companies within the jurisdiction of Jiangsu.

In February of this year, the Shanghai Securities Regulatory Bureau also took administrative regulatory measures against Everbright Securities by issuing warning letters. The Shanghai Securities Regulatory Bureau found that Everbright Securities, as the host securities firm of Yingding Education, failed to diligently and responsibly fulfill its prudent verification obligations during the continuous supervision period, and failed to discover the situation where Yingding Education falsely increased its business income through fictitious business.