New era securities asset management business violations received Beijing Securities regulatory Bureau warning letter

2022-07-22 0 By

China Economic Network Beijing, March 24 – The CSRC website announced yesterday on the new era Securities Co., Ltd. to take a warning letter regulatory measures.It was found that New Times Securities provided financing to local governments and their subordinate departments and accepted guarantee commitments from local governments and their subordinate departments in the process of asset management.The above behaviors violate the provisions of Article 2 of the Notice on Further Regulating Local Governments’ Debt Financing and Article 39 of the Measures for The Management of Private Asset Management Business of Securities and Futures Institutions (CSRC Order No. 151, hereinafter referred to as the Measures for the Management of Private Asset Management Business).According to Article 78 of The Private Equity Management Business Management Measures, the Beijing Regulatory Bureau of CSRC decided to take administrative supervision measures of issuing a warning letter to New Era Securities.Article 2 of the Notice on Further Standardizing Local Government Debt Financing:To speed up the transformation of government function, deal with the relationship between government and market, and further standardize the financing platform company financing behavior management, promote the financing platform company as soon as possible into the marketization operation of state-owned enterprises, in accordance with the law of compliance market-oriented financing, local government and its subordinate departments shall not intervene in the financing platform company daily operations and market financing.Local governments are not allowed to inject public welfare assets and reserve land into the financing platform companies. They are not allowed to promise to use the expected transfer income of reserve land as the financing platform companies’ repayment funds. They are not allowed to use government resources to interfere with the normal operation of financial institutions.Financial institutions shall support market-oriented financing of financing platform companies in accordance with the law and in accordance with the law to serve the development of the real economy.To further improve the information disclosure mechanism, financing platform companies shall actively declare to creditors in writing that they do not assume the function of government financing when raising debt at home and abroad, and make it clear that their new debts from January 1, 2015 are not local government debts according to law.Financial institutions should strictly standardize financing management, effectively strengthen risk identification and prevention, implement access conditions for enterprises to borrow, implement relevant procedures in accordance with commercial principles, and prudently assess the financial capacity and repayment sources of borrowers.When providing financing for financing platform companies and other enterprises, financial institutions shall not require or accept the local government and its subordinate departments to provide guarantee in any form such as letter of guarantee, letter of commitment or letter of comfort.In violation of local government debt guarantee form of debt, according to The General Office of the State Council concerning the local government debt risk contingency plan notice (countries it [2016] no. 88), issued by the Ministry of Finance on < local government debt risk classification disposal guidelines > notice (CaiYu [2016] no. 152) disposed in accordance with the law.Article 39 of Administrative Measures on Private Equity Asset Management Business of Securities and Futures Operating Institutions (Order 151 of CSRC) : Asset management plans shall not directly invest in credit assets of commercial banks;It is forbidden to provide financing for local governments and their departments in violation of regulations, nor to require or accept guarantees provided by local governments and their departments in violation of regulations;It is forbidden to invest directly or indirectly in industries or fields prohibited by laws, administrative regulations and state policies.Article 78 of The Administrative Measures for Private Equity Management Business:Securities and futures business institutions, custodian, sales, agencies and investment consulting services, such as violation of laws, administrative regulations and these measures and other provisions of China Securities Regulatory Commission, the China Securities Regulatory Commission and the relevant local agency can instruct to correct, regulatory talks, issue a warning letter, shall be ordered to regularly report, temporarily not to accept the documents related to the administrative licensing and other administrative regulations;For the directly responsible persons in charge and other directly responsible persons, administrative supervision measures shall be taken, such as supervision talks, warning letters, orders to attend training, and identification of inappropriate candidates.Below for the full text: about the new era of securities co., LTD to issue a warning letter, and the decision of the regulatory measures new era securities co., LTD., as to your company in the process of asset management business, exists to the local government and its subordinate departments to provide financing, and subject to local government and its subordinate departments commitment.The above behaviors violate the provisions of Article 2 of the Notice on Further Regulating Local Governments’ Debt Financing and Article 39 of the Measures for The Management of Private Asset Management Business of Securities and Futures Institutions (CSRC Order No. 151, hereinafter referred to as the Measures for the Management of Private Asset Management Business).According to Article 78 of The Private Equity Management Business Management Measures, our bureau has decided to take administrative supervision measures of issuing a warning letter to your company.Your company shall conduct asset management business in strict accordance with relevant laws and regulations.If your company is not satisfied with the supervision and management measures, you may apply for administrative reconsideration to China Securities Regulatory Commission within 60 days from the date of receiving the written decision, or file a lawsuit to the people’s court with jurisdiction within 6 months from the date of receiving the written decision.During the period of reconsideration and litigation, the supervision and management measures mentioned above shall not be suspended.Beijing Regulatory Bureau of China Securities Regulatory Commission March 9, 2022