news

cailianshe reported on september 23 (reporters lin jian, zhao xinrui and chen junlan)the "battle to defend" the reputation of insurance agents has officially begun. after the china securities association used the revised "securities company sponsorship business rules" on september 20, the newly added category list d (suspended business category) has been presented on the official website of the china securities association. according to the first batch of public information, 16 insurance agents are on the list.

china securities association official website sponsor representative classification list d (suspended business category)

the specific list is as follows:liu nengqing, qiu ronghui and wang jiasheng from citic securities; wang xin from gf securities; yang leijie from cicc; zhang xudong from northeast securities; zheng keguo from zhongtian securities; yang lijun from shanxi securities; li jiyuan and zhao hongzhi from hualong securities; jia wenjing and li chun from haitong securities; he kuanhua, xiao jin, xu gewen and zhu baoli from gf qianhe investment co., ltd.

the dates of punishment for the 16 sponsors range from 2020 to 2024, and the sponsorship projects involved include zijing storage, meishang ecological landscape, diamond, letv, blue mountain technology, kangmei pharmaceutical, etc. cailianshe reporters noted that these projects are all sensational cases and are typical. the relevant companies and their responsible personnel, sponsors and sponsors have all been severely punished by the regulatory authorities, including administrative penalties, market bans, criminal prosecution, etc.

which insurance agents will be publicly announced? two major situations will be clarified

the industry is very concerned about which insurance agents will appear on the category d list. according to the original text of the latest version of the "securities company sponsorship business rules" and industry interviews, the reporter learned that there are mainly two situations:

the first is the insurance agents who have been subject to administrative penalties by the csrc in the past three years. two situations are emphasized here, namely the time scope of "the past three years" and the insurance agents who have been "administratively punished".

second, the list of sponsor representatives who have been identified as inappropriate candidates by the csrc, identified as unsuitable for relevant business by industry self-regulatory organizations, or whose signatures are temporarily not accepted, or whose relevant business documents are temporarily not accepted, and who are in the execution period. here, the main focus is on the "suspension of business" situation, including inappropriate candidates, temporary non-acceptance of relevant business documents, and other detailed situations.the insurance agents whose information will be made public must still be in the "suspension of business" period. if the deadline is over, they will no longer appear in category d and will be removed from the list.

overall, the d-list is dynamically adjusted, mainly linked to the specific regulatory measures taken against the insurance agents and their duration, and is not a fixed list. as the first batch of insurance agents are made public, more insurance agents are expected to be added. as the regulatory measures progress over time, some insurance agents will leave the d-list, especially those who have only been suspended for 4-5 years in the past three years.the industry is concerned about why some insurance agents who have been fined in recent years did not appear in the scope of class d public announcement. the main reason is that they do not meet the conditions for administrative penalties in the past three years, and the measures to suspend business have ended.

through further sorting out of the publicized situations, it can be found that the adjusted classification list aims to promote insurance agents to have a clearer understanding of their own responsibility boundaries and professional risks, to carry out their work more diligently and conscientiously, and to strengthen self-discipline.

there are currently about 6 insurance agents still in effect

data from yi dong’s penalty notices show that among the class d insurance agents, there are a total of four who have been subject to business suspension measures by regulators, and the measures are still in effect, including cicc and west china securities.

on august 30, 2024, two sponsor representatives of citic construction investment, liu nengqing and qiu ronghui, were identified as inappropriate candidates by the guangdong regulatory bureau for failing to supervise transactions and related transactions and failing to perform due diligence obligations in the sponsorship and underwriting projects of zijing storage's application for public issuance of shares and listing on the science and technology innovation board. they are not allowed to hold or actually perform positions related to the sponsorship business within three years from the date of the decision on administrative supervision measures.

on may 14 of the same year, two sponsors of west china securities, zhang ran and liu jingfang, were deemed inappropriate candidates by the jiangsu securities regulatory bureau for failing to perform their duties diligently as sponsors of jintongling's 2019 private stock project and were directly responsible for the violations committed by west china securities during the sponsorship stage. they are not allowed to hold or actually perform any duties related to the sponsorship business within two years from the date when the regulatory measures are decided.

on the same day, two sponsors of west china securities, zhang ran and liu jingfang, were also punished by the shenzhen stock exchange for the above-mentioned violations, and were prohibited from accepting their signed application documents for issuance and listing and information disclosure documents for two years, from may 14, 2024 to may 13, 2026.

on june 24, 2022, the shenzhen securities regulatory bureau disclosed two fines. luan peiqiang, the sponsor representative of citic securities, and wang jiasheng, the then sponsor representative of ping an securities, failed to perform their duties diligently and conscientiously in the course of their service as sponsor representatives for letv's initial public offering and listing on the growth enterprise market. they lacked due professional prudence, failed to perform due diligence procedures, failed to effectively feedback and implement the requirements of the internal core meeting opinions, and the issuer's financial data in the signed and confirmed issuance underwriting letter did not match the actual situation. the shenzhen securities regulatory commission determined that wang jiasheng was an inappropriate candidate and was not allowed to hold any position related to the securities issuance and listing sponsorship business of a securities company or actually perform the above duties within 10 years from the date of the decision on regulatory measures.

it is worth noting that wang jiasheng's basic information disclosure on the china securities association shows that on july 4, 2022, wang jiasheng's latest position at citic construction investment securities was "general securities business", and his previous record showed that his position at citic construction investment securities on august 6, 2014 was "sponsor representative". wang jiasheng's previous registration status at hualin securities and ping an securities was also alternating between "general securities business" and "sponsor representative". the china securities association's official website no longer has the registration information for luan peiqiang and xue rongnian.

in addition to the sponsor representative, the same regulatory measures were also taken against the heads of investment banks. on february 9, 2024, zong changyu of china merchants securities was identified as an inappropriate person by the shenzhen regulatory bureau for controlling the use of the securities account of "zong mouyan" to trade stocks while serving as the project leader of the company's investment banking department and the head of the investment banking business department 10. he was not allowed to serve as the head of the investment banking business team within one year from the date of the regulatory measures decision.

on june 22, 2022, ping an securities failed to perform due diligence diligently and responsibly, failed to implement internal control mechanisms in place, and issued a sponsorship letter that did not match the issuer's financial data with the actual situation. the shenzhen securities regulatory bureau determined that xue rongnian, then head of ping an securities' investment bank, was an inappropriate candidate and was prohibited from holding any position related to securities issuance and listing sponsorship business or actually performing the above-mentioned duties within 5 years from the date of the decision on regulatory measures.

a total of 15 insurance agents have been subject to administrative penalties in the past three years

in addition to the insurance agents whose business has been suspended and the measures are still in effect, the class d list also includes those who have been subject to administrative penalties by the csrc in the past three years. according to director yi, a total of 15 insurance agents meet this condition.

on september 23, 2023, gf securities failed to comply with business rules and industry norms and diligently and responsibly conduct a prudent review of meishang ecology's issuance application documents during its service in the process of sponsoring meishang ecology's 2018 private placement of stocks. the sponsorship letter and other documents issued by the csrc contained false records. the csrc ordered gf securities to make corrections, issued a warning, confiscated 943,400 yuan of sponsorship business income, and imposed a fine of 933,400 yuan; confiscated 7.8302 million yuan of illegal income from underwriting stocks, and imposed a fine of 500,000 yuan. wang xin and yang leijie were given a warning and fined 250,000 yuan each.

on june 26, 2023, northeast securities, as the sponsor of henan diamond's 2016 private placement project, failed to prudently check the source of funds of beijing tianzheng yuanyang fund management center, one of the targets of this private placement, as required. tianzheng yuanyang's actual investment did not match its commitment. the "listing sponsorship letter for private placement of stocks" and "report on the compliance of the public offering of stocks and subscription objects" issued by the company contained false records; and during the continuous supervision period, it did not prudently check the replacement of pre-investment funds with raised funds, did not fully check the situation of the projects invested with raised funds, did not pay enough attention to the use and procedures of the working capital of the investment projects, and did not maintain reasonable professional suspicion of the matters involved in the lawsuit. during this period, the company's sponsor representatives for the project were yu guoqing, ge jianwei, fu tan, zheng keguo, and zhang xudong.

ultimately, the csrc decided to order northeast securities to correct its mistakes, give it a warning, confiscate its underwriting business income of 1.8868 million yuan, and impose a fine of 5.6604 million yuan; to give a warning to guo qing and ge jianwei, and impose a fine of 200,000 yuan each; to give a warning to zheng keguo and zhang xudong, and impose a fine of 100,000 yuan each; to give a warning to fu tan, and impose a fine of 50,000 yuan.

on march 18, 2022, sino-german securities and underwriters yang lijun and wang xin were ordered by the china securities regulatory commission to correct their mistakes, given a warning, and had their business income of 5.6604 million yuan confiscated, and were fined 11.3208 million yuan for failing to fully obtain and compile the sales information of the top ten customers and failing to effectively verify the authenticity of the business in letv's 2016 private placement project. yang lijun and wang xin were given a warning and fined 150,000 yuan each.

on november 4, 2021, hualong securities failed to perform its duties diligently in providing sponsor services for blue mountain technology's application for a public offering of shares and listing on the selected tier, and issued a sponsorship letter with false records. zhao hongzhi and li jiyuan were the directly responsible supervisors. in the end, the two were given a warning by the csrc and fined 500,000 yuan each.

the reporter noticed that although the four insurance agents, he kuanhua, xiao jin, xu gewen and zhu baoli, were punished in 2020, they were identified as inappropriate candidates and related measures were taken for 10 to 20 years, so they will be listed on the class d list for a long time. it is also worth noting that the current practice institutions of he kuanhua, xiao jin, xu gewen and zhu baoli have been changed to alternative investment subsidiaries of securities companies. according to the official website of the china securities association, the registration information of these four insurance agents in the industry is no longer insurance agents, but general practitioners. the changes in the practice information of these four insurance agents were all on april 7, 2023.

pay more attention to the "weight" of reputation

judging from the number of fines and the intensity of regulatory measures taken by regulators, it is expected that the proportion of insurance agents whose business is suspended or restricted will continue to rise in the future. this will undoubtedly put higher demands on the management of securities brokerage insurance agents, including the need to continuously strengthen compliance awareness, optimize risk control mechanisms, and pay more attention to the "weight" of reputation.

as the "gatekeepers" of the capital market, it is only natural for investment banks to return to their roots, and insurance agents are the front-line personnel of the "gatekeepers", and they need to be more diligent and responsible. from the starting point of the newly added d list, it is aimed at promoting insurance agents to have a clearer understanding of their responsibility boundaries and professional risks, and to carry out their work more diligently and conscientiously, which will help accelerate the survival of the fittest among insurance agents, strengthen self-discipline, and improve the overall practice quality of the industry.

overall, this revision is the second revision of the "securities company underwriting business rules". it is a practical measure taken by the china securities association to implement the requirements of the new "national nine articles" on "further establishing and improving the classification list system for practitioners and the professional reputation management mechanism", strengthen the reputation constraints on underwriters, and implement the "reporting means taking responsibility" requirement. the china securities association stated that the next step will be to continuously strengthen the compliance and risk control awareness of securities companies, improve the professional quality and service capabilities of securities companies and their practitioners, better play the role of "gatekeepers" in the capital market, and serve the high-quality development of the capital market.

the china securities association established a classification list for sponsors in december 2020, among which classification list a (comprehensive practice information) is a list of comprehensive practice information of all sponsors; list b (institution verification) is a list of sponsors whose professional ability level evaluation test results do not meet the basic requirements and whose professional ability has been verified by their institutions; list c (penalty and punishment category) is a list of sponsors who have been subject to administrative supervision measures by the china securities regulatory commission, disciplinary sanctions by industry self-regulatory organizations or self-regulatory measures in the past three years.

now that the class d list has been announced, the industry is also concerned about the arrangements for publicizing the withdrawal and rejection of insurance agents. the newly effective negative evaluation publicity mechanism for insurance agents will further improve the class a list and add project withdrawal and rejection information.

since its establishment, the insurance agent classification list has received extensive attention and use within and outside the industry, and has played a strong deterrent role in the behavior of practitioners, prompting them to pay more attention to their professional reputation, and helping to improve their sense of responsibility and quality of practice. now, the adjusted classification list will help insurance agents to more clearly understand their responsibility boundaries and professional risks, carry out their work more diligently and conscientiously, and strengthen self-discipline. the evasive method of investment banks to "withdraw" is no longer advisable.