Recently, some securities firms have been punished by local securities regulatory bureaus due to violations in their brokerage business. Recently, the Zhejiang Securities Regulatory Bureau issued seven consecutive fines against securities companies and related practitioners, involving a total of three securities firms and five securities practitioners. Among them, the areas involving brokerage business include violations of investment advisory live broadcasts, violations of product sales, etc. In recent years, channels including live broadcasts and new media have been widely used in financial institutions. Risks have become increasingly apparent. Supervision in related fields has also become a focus of attention. The industry ecology is constantly being innovated and improved.
Frequent violations in the “new media” field
Recently, Shengang Securities was punished by the local Securities Regulatory Bureau due to violations of investment advisory live broadcast activities. The Zhejiang Securities Regulatory Bureau issued an announcement stating that Zhao Mouzhen, an employee of Shengang Securities Zhejiang Branch, engaged in securities investment consulting business through the live broadcast account opened by the company without registering as a securities investment consultant, and recommended individual stocks during the live broadcast. , reflecting that the company does not properly manage employees’ professional qualifications and professional behaviors.
The Zhejiang Securities Regulatory Bureau pointed out that the above situation violated relevant regulations, so it decided to take supervisory and management measures by issuing warning letters to the company and Zhao Mouzhen respectively, and recorded them in the integrity files of the securities and futures markets.
Other brokerages were also punished for violations of new media channels.
In April this year, Hengtai Securities was fined by the Sichuan Securities Regulatory Bureau because its employees violated live broadcast regulations. According to the announcement, while working at the Tianfu Avenue Securities Sales Department of Hengtai Securities in Chengdu, employee Xiong Mouping posted short videos and carried out live broadcasts through his Douyin account under his real name, analyzed the trends of the A-share market and sectors, and provided services for a “financial vocational skills school” Drain traffic, and seek improper benefits by collecting live broadcast rewards, live broadcast membership subscription fees, thank you fees, etc.
It is worth noting that the Hebei Securities Regulatory Bureau previously stated in the latest issue of “Securities and Futures Institutional Supervision Newsletter” that during the process of securities companies’ new media development, some securities companies have not established a control mechanism, and branches and employees can use securities companies to Open a new media platform account in the name, publish pictures, texts and videos without compliance review, engage in customer solicitation, market trend analysis and other activities, and even publish various inappropriate remarks.
The Hebei Securities Regulatory Bureau pointed out that the new media platform has opened up new business scenarios for institutions to develop their business, but it has also exposed some irregularities. The bureau requires all institutions within its jurisdiction to attach great importance to the risks of new media business development, establish and improve relevant systems, incorporate all employee new media accounts into the compliance management system, and standardize employee business behavior.
Marketing and Exhibition Industry Violations Received Repeated Warnings
Overall, it is not uncommon for securities firms to commit irregularities in the brokerage business this year. In addition to new formats such as new media and live broadcasts, there are also irregularities in the marketing industry such as purchasing financial products on behalf of employees during their tenure and assisting customers in lending securities accounts. .
Recently, an employee of a branch of Zheshang Securities was issued a warning letter by the Zhejiang Securities Regulatory Bureau for purchasing financial products on his behalf during his employment, and was recorded in the securities and futures market integrity files.
In August this year, the Securities Sales Department of Everbright Securities, Xinxing Dongdi North Road, Yunfu, was issued 6 fines on the same day. The former persons in charge, Zhang Moukai, Li Mouxin, Ye Mouhua and others, assisted customers in lending securities accounts to provide intermediaries and facilities for financing for others, and promised customers to bear losses in violation of regulations; some employees provided answers to science and technology innovation board test questions to customers, and asked for Customer securities account passwords, sending return questions to customers, providing reply caliber, etc.
In June this year, the Guangdong Securities Regulatory Bureau issued a warning letter to Essence Securities Zhongshan Branch and employee Zeng Mouhang. After investigation, the branch had the following problems: First, employees of the branch handled securities subscriptions and transactions for customers during their employment, and the company failed to discover and verify relevant situations in a timely manner. The second is that employees failed to report their mobile phone numbers, but the company failed to monitor and provide early warning in real time, failed to be cautious about obviously abnormal situations, and did not take sufficient measures to deal with exposed compliance risks.
Experts say that purchasing financial products on behalf of others involves lending personal accounts, which can easily be used by criminals to “bleach” funds from unclear sources through legal investment channels, or even use the stolen money to continue to make profits. As securities practitioners, they must abide by laws, administrative regulations, regulations of regulatory agencies and administrative departments, self-discipline rules and professional ethics when engaging in customer solicitation and customer service activities, consciously accept the management of the securities companies they serve, and perform Obligations stipulated in the entrustment contract.
Various efforts are made to strengthen supervision of brokerage business
In order to strengthen the standardization of the brokerage business in the securities industry, the law enforcement actions of regulatory authorities have also been continuously strengthened and improved with the development of the industry. Recently, various forces, including regulatory authorities and the institutions themselves, are continuing to make efforts to strengthen compliance supervision in live broadcasts, self-media and other aspects.
Recently, the China Securities Association issued a notice to various securities companies and securities consulting firms on the investigation and reporting of information on illegal securities activities on the Internet, requiring investigation and reporting of information on illegal securities activities in the securities field, with a focus on investigating counterfeit securities business institutions and personnel. Involving African “self-media” accounts and APPs.
Some brokerages have also taken actions to strengthen live broadcast compliance. For example, Caida Securities held a meeting this year on the compliance supervision of investment advisory live broadcasts in the securities industry to study non-compliance matters in the investment advisory live broadcast process in the securities industry, and explore the use of cutting-edge technology, regulatory technology and other technical means to conduct accurate and real-time monitoring of the live broadcast process. Compliance monitoring, discovering violations, blocking external broadcasts, and protecting small and medium-sized investors by strengthening compliance review of the live broadcast process and content.
West China Securities has proposed a number of countermeasures for the compliance of the live broadcast exhibition industry: adhere to the correct direction of public opinion, the industry’s publishing sources must be authentic and effective, and the content must be verified before publishing; strengthen daily monitoring of new media platforms, and conduct self-media monitoring of employees Implement “list-based” management of accounts, standardize business processes, and improve daily monitoring methods; strengthen compliance management of securities practitioners, and supervise securities practitioners to adhere to professional principles and strictly abide by compliance bottom lines when providing services through self-media tools.