China News Service, July 1st. According to a "Decision on Administrative Penalty" recently disclosed by the Shanghai Regulatory Bureau of the China Securities Regulatory Commission, from September 24, 2013 to June 3, 2020, Liu worked for Shanghai Haitong Securities Asset Management Co., Ltd. During the company period, it violated the provisions of the Securities Law that prohibit employees from holding and trading stocks in the name of others, and was fined and confiscated over 100 million yuan.
Screenshot from Shanghai Regulatory Bureau of China Securities Regulatory Commission
Illegal "stock speculation" traded 14.7 billion yuan
According to the "Decision on Administrative Punishment", from September 24, 2013 to June 3, 2020, Liu served as a researcher, investment manager, and deputy director of the equity investment department (presiding over the work) of Shanghai Haitong Securities Asset Management Co., Ltd. Securities practitioners.
From September 24, 2013 to June 3, 2020, Liu used the "Qin Mouzhen" Haitong Securities Credit Account, "Xu Moulan" Haitong Securities Credit Account, "Zhou Mouling" Haitong Securities Credit Account, " Wang Mouhua" Haitong Securities ordinary account and "Mao Moudong" Haitong Securities credit account (hereinafter referred to as "Qin Mouzhen" and other 5 securities accounts) hold, buy and sell stocks, and entrust them through the mobile phone and computer equipment used by Liu Moudong. A total of 24,623 orders were placed, accounting for 89.37% of the total number of entrusted orders. The cumulative transaction amount was 14,682,496,752.69 yuan, and the profit was 54,638,669.34 yuan.
The above-mentioned illegal facts are sufficient to be ascertained if there are relevant explanations, relevant securities account information, bank account information, transcripts of inquiries, and exchange calculation data.
Screenshot from Shanghai Regulatory Bureau of China Securities Regulatory Commission
The Shanghai Supervision Bureau of the China Securities Regulatory Commission believes that Liu, as a securities practitioner, used five securities accounts including "Qin Mouzhen" to hold and trade stocks, which violated Article 40, paragraph 1 of the Securities Law, which prohibits practitioners. The provision of holding, buying and selling stocks in the name of others constitutes the provisions of Article 187 of the "Securities Law": "A person who is prohibited by laws and administrative regulations from participating in stock trading, directly or under a pseudonym or in the name of another person, holds, buys and sells stocks. stock" violations.
The party argues that the fine is too high, far beyond the ability to bear
Liu and his agent pointed out in two hearings and statements and defense materials that the profit and loss of this case were improperly calculated. Liu used the funds in the securities account to be jointly invested by Liu and Mao, and part of the proceeds belonged to Mao. It is recommended to renew the case. Calculate the profit and loss of the case.
Screenshot from Shanghai Regulatory Bureau of China Securities Regulatory Commission
Liu and his agent believed that the illegal acts involved in Liu's case were divided into three stages.
Among them, from September 24, 2013 to May 2015, Liu's behavior of buying and selling stocks has passed the time limit for administrative punishment; from June 2015 to December 2019, Liu's behavior of buying and selling stocks should be identified as exploiting Transactions of undisclosed information should not be identified as illegal trading of stocks by practitioners. According to the principle of application of the law that is less severe and that special laws take precedence, Article 191 of the Securities Law shall be applied; January 2020 to June 2020 During the 3rd day, Liu Mou has handed over all the securities accounts, bank cards, USB shields, etc. of Mao Moudong, Wang Mouhua, Zhou Mouling, etc. to Mao Moudong, and Mao Moudong traded on his own. There is no illegality. behavior shall not be subject to administrative penalties.
At the same time, Liu has a mitigating circumstance that automatically suspends the illegal act, and it is suggested that Liu should be dealt with lightly.
The amount of the fine determined in the "Advance Notice of Administrative Penalty" is too high and far exceeds the capacity of the parties concerned.
Regulators determine that the
penalty is appropriate
After review, the Shanghai Supervision Bureau of the China Securities Regulatory Commission believes that, based on the evidence in the case, during the period from September 24, 2013 to June 3, 2020, the funds in five securities accounts including "Qin Mouzhen" that Liu used successively came from Liu. certain.
There is no evidence to show that the funds in the securities account were contributed by Mao Moudong and the income was returned to Mao Moudong.
There is no improper calculation of profit and loss in this case.
Screenshot from Shanghai Regulatory Bureau of China Securities Regulatory Commission
During the nearly seven years from September 24, 2013 to June 3, 2020, Liu used five securities accounts including "Qin Mouzhen" to hold and buy stocks, which constituted a whole illegal act.
The bureau launched an investigation into this case in August 2020, and the statute of limitations has not expired.
From September 2013 to June 2020, Liu used other people's securities accounts to hold, buy and sell stocks, and this behavior continued until the implementation of the current "Securities Law".
The Securities Law amended in 2014 and the current Securities Law both prohibit securities practitioners from illegally holding and trading stocks, and the scope of penalties for such acts has not been adjusted, so the principle of “respecting the old and taking the lighter” does not apply.
From January 2020 to June 3, 2020, the “Mao Moudong” Haitong Securities credit account, the “Zhou Mouling” Haitong Securities credit account and the “Wang Mouhua” Haitong Securities ordinary account involved in the case were Mao Moudong operated, but his operation was to serve Liu, and the funds in the account came from Liu, and the actual holder of the stocks in the securities account during the period involved was Liu.
The Shanghai Supervision Bureau of the CSRC believes that the punishment proposal for Liu has comprehensively considered factors such as the facts of the violation, the circumstances and the degree of social harm, and the determined punishment range is appropriate.
Combined with the evidence in the case, Liu did not take the initiative to suspend the illegal behavior.
The difficult family situation raised by Liu did not belong to the circumstances under which the administrative punishment should be lighter or mitigated as stipulated in the Administrative Punishment Law.
According to the facts, nature, circumstances and social harm of Liu's illegal behavior, and in accordance with the provisions of Article 187 of the Securities Law, the Shanghai Regulatory Bureau of the China Securities Regulatory Commission has decided to order Liu to dispose of the illegally held stocks and confiscate them. Liu obtained 54,638,669.34 yuan of illegal income, and imposed a fine of 54,638,669 yuan on Liu.
(Zhongxin Finance)