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Beijing Business Daily (Reporter Hao Yan) On August 6, the Beijing Securities Regulatory Bureau issued an announcement stating that Beijing Zhongfang Xinfu Investment Management Consulting Co., Ltd. (hereinafter referred to as "Zhongfang Xinfu") had the following violations: failure to handle business location change procedures on time; the company's compliance management and internal control were not in place; customer marketing service records were not fully preserved, the risk disclosure form provided by the electronic signing system lacked customer signatures, the customers of the compliance management system were not registered with real names, the compliance management system and the customer management database were separated and unrelated to each other, and compliance management and risk control were difficult to effectively embed into business processes.

In addition, some marketing personnel do not have the qualifications to engage in securities business; some employees who do not have the qualifications to practice securities investment advisors provide securities investment advice to clients; the information disclosed at business premises is incomplete; some employees engage in false and misleading marketing propaganda and promise of returns during the marketing and promotion process; and there are many issues with the source of data and information used in the stock recommendation software not being explained.

The Beijing Securities Regulatory Bureau stated that the above behavior violated many regulations and decided to take administrative supervision measures against Zhongfang Xinfu, ordering it to suspend adding new customers for 12 months. During the suspension period, the company's headquarters and branches are not allowed to sign new customers, renew contracts with old customers after the service period ends, and conduct investment consulting business in disguised names such as "investor education". After the suspension period expires, Zhongfang Xinfu shall report the rectification in writing, and the Beijing Securities Regulatory Bureau will organize an acceptance inspection based on the rectification situation. Before the acceptance is completed, no new customers shall be added.

At the same time, the Beijing Securities Regulatory Bureau pointed out that Xue Qingxin, as the person in charge of the company's compliance management, was responsible for the above-mentioned violations during his tenure. The Beijing Securities Regulatory Bureau took administrative supervision measures such as issuing a warning letter. Zhang Song, as the then chairman, was primarily responsible for the above-mentioned violations during his tenure and was also subject to administrative supervision measures such as issuing a warning letter by the Beijing Securities Regulatory Bureau.