The Hebei Securities Regulatory Bureau issued a decision on September 22, imposing the administrative regulatory measure of a warning letter on Caida Securities Co., Ltd. The decision shows that Caida Securities had inadequate controls over marketing activities in its brokerage business, including refunding sales rewards to employees who purchased the company's asset management products, some middle and back office employees engaging part-time in marketing and customer service, and some personnel without futures qualification carrying out IB business and receiving rewards. In addition, the company's employee conduct controls were not strict, with insufficient scrutiny of employees trading stocks, and it failed to fully perform its duties in bond underwriting. In certain corporate bond underwriting projects, due diligence on the issuer's financial information, construction progress of projects under construction, and asset status was inadequate. The Hebei Securities Regulatory Bureau requires Caida Securities to strengthen compliance and internal control management, and to submit a written report on rectification within 15 working days from the date of receiving the decision. The administrative regulatory measure will also be recorded in the integrity archives of the securities and futures market.
Caida Securities Co LtdHebei Securities Regulatory Bureau issued a warning letter over inadequate marketing controls, employee conduct oversight, and bond underwriting due diligence.
