The Qingdao bureau of the China Securities Regulatory Commission issued a notice on October 9, giving warning letters to the Qingdao branch of Caitong Securities Co., Ltd., its former head Pang Xiangfei, and employee Zhang Yubo. An investigation found three violations at the Qingdao branch: returning part of clients' securities trading commissions to interested parties, inadequate management of investor account real-name registration and insufficient handling of alerts such as abnormal trading, and inadequate investor suitability management. These issues reflect imperfect internal controls and inadequate compliance management. During his tenure at the Qingdao branch, Zhang Yubo directly or through others returned client trading commissions to interested parties, violating integrity requirements; Pang Xiangfei, as the former head of the Qingdao branch, bears responsibility for the above issues.
Caitong Securities Co LtdCSRC Qingdao bureau issued warning letters to Caitong Securities' Qingdao branch and staff over three compliance violations including improper commission rebates and inadequate account/suitability management.
