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Cailianshe News, July 17 (Reporter Gao Yanyun)As a high-incidence area for penalties, wealth management business hasTicketStatistics show that as of July 16, brokerage wealth management businesses have received as many as 75 fines this year, involving 32 brokerages and 48 practitioners.

It should be pointed out that among the 75 fines, many were multiple fines for one case, involving both corporate legal entities and relevant responsible persons.

There are four securities firms that received five fines, namely, GuorongSecurities、Everbright Securities, Zhongtai Securities, and China Merchants Securities;

There are two brokerage firms that received four fines, namely Galaxy Securities and Guotai Junan Securities;

There are four brokerage firms that received three fines, namely Caixin Securities, CICC Wealth, Guosen Securities, and Minsheng Securities;

There are 11 securities firms that received two fines, namely Century Securities, Guotou Securities, Founder Securities, Caida Securities, Caitong Securities, Guodu Securities, Industrial Securities, Huaan Securities, Huatai Securities, Tianfeng Securities, and Guosheng Securities;

There are also 11 securities firms that received one fine, namely, Changjiang Securities, Donghai Securities, Southwest Securities, Guotai Junan Securities, CICC, Haitong Securities, Kaiyuan Securities, Shenwan Hongyuan Securities, Ping An Securities, AVIC Securities, and Guangdong Securities.

Looking at the reasons for penalties for securities firms’ wealth management business violations this year, there are three main categories: illegal operation of stock accounts, illegal agency sales of financial products, and illegal conduct of investment advisory business, with 17, 12, and 19 tickets issued respectively.

Judging from the reasons involved in the fines, there has been almost no major change. Therefore, it is necessary to strengthen the management of the professional behavior of securities practitioners, compliance personnel should have a strong sense of compliance, and securities firms should always have their own monitoring methods, such as maintaining normal prevention and control of practitioners' illegal stock speculation. Internal accountability and compliance case publicity also need to keep up in a timely manner to form a virtuous circle of compliance culture.

4 brokerage headquarters, 19 business departments and 48 employees were fined

According to the data compiled by Yidong, four brokerage headquarters were fined, namely Zhongtai Securities, Kaiyuan Securities, Everbright Securities and Guosheng Securities; five brokerage branches were fined, namely Century Securities Xiamen Branch, Guotou Securities Hebei Branch, Everbright Securities Nanjing Branch, CICC Fortune Xiamen Branch and Minsheng Securities Shantou Branch.

19 brokerage branches were fined: including GuoRong Securities Fuzhou East Street Securities Branch, Caixin Securities Chongqing Xingai Avenue Securities Branch, Everbright Securities Shenzhen Xinyuan Road Securities Branch, GuoRong Securities Ulanhot Xing'an North Road Securities Branch, Founder Securities Shanghai Fengxian District Jinhai Highway Securities Branch, Caida Securities Tianjin Jiangdu Road Securities Branch, Caitong Securities Kunming Beijing Road Securities Branch, Guosen Securities Shanghai East Changzhi Road Securities Branch, Guodu Securities Dezhou Jiefang Middle Avenue Securities Branch, Haitong Securities Urumqi Youhao North Road Securities Branch, China Merchants Securities Shanghai Zhaojiabang Road Securities Branch, Huaan Securities Zhengzhou Shangdu Road Securities Branch, Huatai Securities Shenzhen Shennan Avenue Securities Branch, China Galaxy Securities Nanjing Yanshan Road Securities Branch, Tianfeng Securities Shanghai Longhua Middle Road Securities Branch, China Galaxy Securities Qingdao Haikou Road Securities Branch, Zhongtai Securities Zhangzhou Yan'an North Road Securities Branch, China Merchants Securities Shenzhen Nanshan Nanyou Avenue Securities Branch, and Guotai Junan Securities Jinan Shengli Street Securities Branch.

In terms of specific penalties imposed on individuals, as many as 48 securities practitioners were fined.

Wealth management business violations focus on three aspects

Violations in wealth management business mainly involve three aspects: illegal operation of securities accounts, illegal agency sales of financial products, and illegal conduct of investment advisory business.

There are about 17 similar types of fines for illegal operation of securities accounts, securities trading in the name of others, privately accepting investors' commissions to buy and sell securities, etc.

There were 4 fines for illegal agency sales of financial products and improper marketing and promotion, and 8 fines for agreeing to share profits and losses and illegally promising to protect principal and profits, totaling 12.

There were 19 fines for violating regulations in conducting investment advisory business.

In addition, there were 2 fines for business personnel practicing beyond the scope of their profession, 1 fine for violating the securities industry practitioner qualification examination regulations, 3 fines for providing convenience for entrusted financial management and financing between clients in violation of regulations, 1 fine for irregular securities account opening, and 1 fine for failure to fulfill the obligation to inform about risks.

"Irregularities in investor suitability management" was mentioned frequently, as well as failure to effectively perform investment management duties, with as many as 14 related fines.

Issuing a warning letter is the main type of penalty, with as many as 64 related fines, 4 administrative penalties, 1 supervisory talk and 1 suspension of practice, and 5 orders to correct.

The regulators that issue fines are mainly the China Securities Regulatory Commission and localSecurities Regulatory Bureau、China Securities AssociationAmong them, Shandong Securities Regulatory Bureau issued the most tickets, 10 tickets, Shanghai and Shenzhen Securities Regulatory Bureau issued 9 and 7 tickets respectively, Fujian and Guangdong Securities Regulatory Bureau issued 5 tickets respectively, Chongqing, Xiamen, Henan and Jiangsu Securities Regulatory Bureau issued 4 tickets each, Tianjin Securities Regulatory Bureau issued 3 tickets, Inner Mongolia, Yunnan, Jiangxi, Ningxia and Guangxi Securities Regulatory Bureau issued 2 tickets each, Sichuan, Hebei, Beijing, Xinjiang, Shaanxi, Anhui, Qingdao, Ningbo and the China Securities Regulatory Commission and China Securities Association issued 1 ticket each.

Regulators and brokerage firms crack down on illegal stock speculation by practitioners

Judging from multiple systems and measures, regulators have strengthened control over the professional conduct of securities practitioners in many aspects.

Recently, regulators and securities firms have generally stepped up their crackdowns on stock speculation by practitioners. A practitioner at a leading securities firm said that his firm recently launched a three-year retrospective investigation of the stock accounts of employees and their relatives to maximize the discovery of illegal stock speculation. The Qinghai Securities Regulatory Bureau said that it is necessary to realize the seriousness of the problem of illegal stock speculation by practitioners and build a long-term mechanism to ensure that they "dare not, cannot, and do not want" to engage in illegal stock speculation. The Hebei Securities Regulatory Bureau said that it is necessary to prevent and severely crack down on illegal stock speculation by practitioners. The Tianjin Securities Regulatory Bureau said that it is determined to curb illegal stock speculation by practitioners.

In May this year, in order to strengthen the professional ethics of securities practitioners, the China Securities Association issued the "Code of Professional Ethics for Securities Practitioners" for soliciting opinions, and formulated six principles for the practice of securities practitioners: honesty and trustworthiness, professional due diligence, making profits for justice, cherishing reputation, being steady and prudent, committed to the long-term, adhering to integrity and innovation, benefiting the country and the people, complying with laws and regulations, integrity and self-discipline, respect and tolerance, and common development.

At the same time, the Code emphasizes the importance of strengthening the management of practitioners, urging industry institutions to strictly control the "entry gate" of appointments, highlighting social morality, professional ethics and personal morality, and promoting the cultivation of a team of financial talents with both moral integrity and ability. It also mentions the improvement of the basic norms and ethics of practitioners' professional behavior, and the establishment of a sound practitioner classification list system and a professional reputation management mechanism.

In April, the cultural construction evaluation system was adjusted again. It was newly added that if there are cases where practitioners engage in illegal stock speculation and the regulatory authorities determine that there are problems with compliance management or that compliance supervision measures should be strengthened and a penalty document should be issued, they should deduct points in their self-evaluation.