5carddrawrules| Huatai Securities was ordered by the Jiangsu Securities Regulatory Bureau to make corrections due to multiple problems such as imperfect internal control

Beijing Business Daily (Reporter Li Haiyuan) April 195carddrawrulesJiangsu Securities Regulatory Bureau said in a document that an on-site inspection of Huatai Securities (601688) was recently carried out. After investigation, Huatai Securities has four problems.

First, some proprietary business compliance risk control check is not in place. In the bond market-making business, lax control of related party transactions and lack of effective control over the risk hedging of bond investment lead to the expansion of losses.

Second, it is not in place to manage the appropriateness of some customers and supervise the implementation of obligations. Issue non-capital preservation floating income vouchers linked to individual stock prices to enterprises without risk management needs such as hedging; issue non-capital preservation floating income vouchers to private equity funds that reach the prescribed investment threshold through multi-layer nesting; shareholders of listed companies are not fully urged to truthfully disclose their holdings.

Third, the qualification management of employees is not in place. After investigation, Huatai Securities should have the fund qualification of some of the staff did not pass the fund qualification examination.

Fourth, the internal control of the investment business is not perfect. The employee investment platform of Huatai Securities subsidiary did not follow all the investment projects.5carddrawrulesIt does not comply with the internal investment regulations of Huatai Securities subsidiary, and the above behavior reflects the imperfection of the company's internal control.

As the above acts violated a number of regulations, Jiangsu Securities Regulatory Bureau decided to take regulatory measures to order Huatai Securities to correct, and required it to submit a written report on the implementation of the above-mentioned rectification within 30 days from the date of receipt of the decision.