With the imminent implementation of the comprehensive registration system, the role of securities companies, accounting firms, law firms and other intermediary institutions as "gatekeepers" in the capital market will become increasingly prominent.The supervision of intermediaries is also constantly escalating.
The data shows that since this year, 141 institutions have been supervised and punished for nearly 200 times in total, and the punishment has continued to increase. The current market environment, order and ecology have also been significantly improved and changed, and the behavior of issuers and intermediaries has also normalizing.Experts said that the key to consolidating the responsibilities of intermediaries is to improve the efficiency of law enforcement, improve the level of law enforcement and the deterrent force of the law.At the same time, intermediaries themselves should continuously improve and enhance their professional practice ability and practice ethics.
141 agencies received 199 fines
Recently, a series of intermediaries have been fined.
On July 1, Jianghai Securities was suspected of not being diligent and conscientious when serving as a financial advisor for Orbit to issue shares and pay cash to purchase assets and raise supporting funds, and the documents it produced and issued contained false records, misleading statements or major omissions. In accordance with relevant laws and regulations, the China Securities Regulatory Commission has decided to file a case against Jianghai Securities.
At the same time, on June 29, the NAFMII announced that two accounting firms, Zhongshen Hua Certified Public Accountants (special general partnership) and Zhongshen Zhonghuan Certified Public Accountants (special general partnership), were self-disciplined for failing to perform their financial report auditing diligently. ; On June 24, due to the fraudulent listing project of LeTV 12 years ago, Shenzhen Securities Regulatory Bureau took regulatory measures to suspend the sponsorship of Ping An Securities for 3 months; on June 16, Jiangsu Securities Regulatory Bureau took measures against Guohai Securities. The Jiangsu Securities Regulatory Bureau found that the company had insufficient supervision over the use of funds raised by the issuer.
According to statistics from Flush, a reporter from the Economic Information Daily found that as of July 5, as of press time, a total of 141 intermediaries including securities companies, accounting firms, and law firms have received 199 fines since the beginning of this year.Among them, 58 securities companies received 86 fines, 23 law firms received 30 fines, and 39 accounting firms received 59 fines. In addition, there were 7 asset rating agencies, 8 asset appraisal agencies, etc. Also received regulatory fines.
Responsibilities of "gatekeepers" of intermediaries continue to be compacted
In recent years, based on the overall supervision of serving the development of the real economy and improving the quality of listed companies, the China Securities Regulatory Commission has always adhered to the principle of "double investigation in one case", and has strictly and expeditiously investigated and dealt with securities fraud, intermediaries behind fraud, and other illegal acts that are not diligent and responsible in accordance with the law.In 2021, the CSRC will file and investigate 39 illegal cases of intermediaries according to law, more than double the number of the same period of the previous year, and transfer or notify the public security organs of clues of 2 cases.Among the 20 typical illegal cases under the CSRC inspection in 2021, there are 3 cases of Guangdong Genzon Zhujiang Certified Public Accountants, Ruihua Certified Public Accountants, and Haitong Securities failing to perform their duties diligently.
The CSRC stated that the next step will be to resolutely implement the "Opinions on Strictly Crackdown on Securities Illegal Activities in accordance with the Law" issued by the Office of the Central Government and the Office of the State Council, and in accordance with the work policy of "zero tolerance", strengthen the effective linkage of daily supervision, supervision and inspection, and inspection and law enforcement. , adhere to the "double investigation in one case", seriously investigate the responsibilities of intermediaries and practitioners for violations of law, effectively increase the cost of violations, effectively urge them to play the role of "gatekeeper" in the capital market, and effectively build a market operation system centered on information disclosure.
The CSRC’s 2022 System Work Conference also emphasized that it will further improve the registration-based arrangement centered on information disclosure, highlight the top priority of the main board reform, accelerate the transformation of issuance supervision, further consolidate the “gatekeeper” responsibilities of intermediaries, and strengthen various We should work together to promote the formation of a good market ecology that is conducive to the full implementation of the registration system, and ensure the smooth implementation of reforms.
Relevant systems and regulations are also constantly being improved.On May 27, the China Securities Regulatory Commission issued the "Guidelines for the Due Diligence of Sponsors" and the "Working Paper Guidelines for the Sponsorship of Securities Issuance and Listing", aiming to continuously improve the system of rules and regulations, urge the sponsors to continuously improve the quality of practice, and improve the capital market to serve the real economy. High-quality development capability; on May 31, the China Securities Regulatory Commission, together with the Ministry of Justice and the Ministry of Finance, jointly issued the "Opinions on Strengthening the Supervision of Integrity Practice of Intermediaries under the Registration System", urging intermediaries to be diligent, honest and self-disciplined; the China Securities Regulatory Commission is still in the system The "Guidelines for On-site Inspection of Internal Control of Investment Banking Business of Securities Companies" was issued and urged securities companies to attach great importance to the construction and operation of the internal control system of investment banks.
At the exchange level, the Shanghai Stock Exchange implements the "three principles" of the registration system, strictly enforces the issuer's primary responsibility for information disclosure, consolidates the responsibility of intermediaries for verification and checks, and strictly controls the entrance.In order to guide the intermediary agencies to fulfill their responsibilities, on the basis of refining their responsibilities and requirements, increase punishment.In the whole year of 2021, 11 written warnings will be issued for intermediaries that do not perform their duties properly, involving 3 intermediaries and 22 related practitioners. Among them, 2 sponsors and 16 sponsor representatives will be issued written warnings.
"The current regulatory characteristics of intermediaries are clearly reflected in the three core points of system establishment, non-intervention, and zero tolerance." Chen Li, chief economist of Chuancai Securities and director of the research institute, concluded.
Registration system poses a new test for regulatory efficiency
"The registration system is about to cover the entire market. This is a test of the level of supervision and supervision efficiency, as well as the level and ability of our law enforcement." Dong Dengxin, director of the Institute of Finance and Securities at Wuhan University of Science and Technology, said that from the current market It can be seen that the new securities law and the amendments to the criminal law are being effectively implemented, and have already played a good deterrent and demonstration role.
Chen Li also believes that since the beginning of this year, the responsibilities of intermediaries have been continuously consolidated. Judging from the delisting of unqualified enterprises and the voluntary withdrawal of materials by unqualified registered companies, the quality and quality of practicing intermediaries are also improving. of.For some intermediaries that are not compliant and have weak professional ability, the punishment has also been increased, which has played an obvious deterrent effect.
From the perspective of supervision, Fu Lichun, an economist and founding partner of Yuntai Capital, believes that at present, the professional level of supervision of intermediaries is rapidly improving, and supervision is becoming more and more legalized, institutionalized and standardized, linked to the market, and intermediaries Institutions have also made relatively rapid and significant progress, becoming more professional and standardized, and getting closer to the requirements of the registration system.
Dong Dengxin believes that the key to consolidating the responsibilities of intermediaries is to improve the efficiency of law enforcement, improve the level of law enforcement and the deterrent force of the law.In fact, the only effective way to strengthen supervision and make all parties in the market, including issuers, intermediaries or investors, operate in a law-abiding manner and respect the law is to strengthen the responsibilities of legal persons.At the same time, it is necessary to intensify efforts to increase the accountability of natural persons. Who is the signatory, who is the trader, who is the responsible person, and who is responsible for life.
Of course, supervision is one aspect, and intermediaries themselves must continue to improve and upgrade.Chen Li believes that intermediaries have two key points of improvement. One is the professional practice ability, including the investment and research level of the intermediary agency, and the other is the professional ethics level of practitioners. These two are fundamental.Fu Lichun suggested that the implementation of rules should be improved in an environment with more rule of law and better regulations, so that market intermediaries can give full play to their attributes and functions within a clearer and clearer boundary.
