Yan Ying, reporter from China Fund Daily

　　Securities practitioners have been repeatedly banned from speculating in stocks.

　　A few days ago, an administrative penalty decision issued by the Shanghai Securities Regulatory Bureau showed that Liu, the former deputy director of the equity investment department of Haitong Asset Management, was sentenced to "one penalty for one penalty" for illegally buying and selling stocks, with a total fine of 109 million yuan. A record of fines for natural persons in recent years.

　　According to the investigation, Liu has used 5 securities accounts to hold and trade stocks during his nearly 7 years in office, and has placed 24,623 orders through his personal mobile phone and computer equipment, with a cumulative transaction amount of about 14.682 billion yuan and a profit of about 54.6387 million yuan.

　　In addition, the penalty decision revealed that the current case of Liu's use of undisclosed information to trade is in the criminal trial stage and has not yet been sentenced.

The person in charge of equity investment in leading asset management has destroyed his future because of illegal stock speculation, which is another wake-up call for the industry.

　　Check out the details-

14.682 billion yuan of wanton transactions

　　It is reported that Liu joined Haitong Asset Management in September 2013. From September 24, 2013 to June 3, 2020, Liu served as Haitong Asset Management researcher, investment manager, and deputy director of the equity investment department (presiding over the work). .

As an asset management employee of a leading securities company, Liu is naturally a securities practitioner.

　　According to the supervision and investigation, during Liu's tenure, he used the ordinary and credit accounts of Haitong Securities opened by 5 natural persons to hold and trade stocks, and entrusted a total of 24,623 orders through his personal mobile phone and computer equipment, accounting for the total number of entrusted orders. 89.37% of the number of orders placed; the cumulative transaction amount was 14.682 billion yuan, and the profit was 54.6387 million yuan.

　　Such a high transaction amount can be regarded as the most illegal stock speculation by securities practitioners in recent years.

　　In this regard, the Shanghai Securities Regulatory Bureau believes that Liu, as a securities practitioner, used five securities accounts to hold and trade stocks, which violated the provisions of the Securities Law that prohibit practitioners from holding and trading stocks in the name of others. It constitutes an illegal act that "people who are prohibited by laws and administrative regulations from participating in stock trading, directly or under a pseudonym, or in the name of others, hold or buy and sell stocks".

　　According to the facts, nature, circumstances and social harm of Liu's illegal behavior, the Shanghai Securities Regulatory Bureau decided to order Liu to deal with the illegally held stocks, confiscate Liu's illegal income of 5,463.87 yuan, and impose a fine of 5,463.87 yuan on Liu.

That is, "one penalty for no penalty", the total amount of fines and confiscated amounted to 109 million yuan, which also set a record for personal fines in recent years.

Suspected of using undisclosed information to trade

　　People walking by the river tend to get their shoes wet.

In the early days, fund managers/investment managers who were directly responsible for investment were more likely to be investigated for privately conducting convergent transactions, which is commonly referred to in the industry as a "rat warehouse".

　　Although the Shanghai Securities Regulatory Bureau did not investigate this administrative penalty, in his statement and defense, Liu "self-exploded" his alleged use of undisclosed information to trade.

　　Liu and his agent pointed out in two hearings and statements and defense materials that the current case of Liu's use of undisclosed information to trade has not yet been judged in the criminal trial stage.

It is also believed that according to the notice forwarded by the General Office of the CPC Central Committee and the General Office of the State Council, the "Opinions on Strengthening the Linkage between Administrative Law Enforcement and Criminal Justice" issued by the Legislative Affairs Office of the State Council and other departments, it is not appropriate to impose administrative penalties on Liu.

　　In addition, in response to the illegal situation involved in the case, Liu believes that the behavior of buying and selling stocks from September 24, 2013 to May 2015 has passed the time limit for administrative punishment, some accounts have been stopped in 2015, and some accounts have been closed in 2020. It has been returned after a year, etc., it is believed that no penalty should be imposed, and it is believed that the calculation of profit and loss in this case is improper, and it is recommended to recalculate.

　　Liu and his agent also pointed out that the Shanghai Securities Regulatory Bureau did not timely transfer the case of using undisclosed information to the judicial authorities during the investigation process, which was a procedural violation.

The amount of the fine is too high, far beyond what the parties can afford.

Liu has a lenient circumstance that automatically suspends the illegal act, and it is recommended to be dealt with leniently.

　　However, the Shanghai Securities Regulatory Bureau did not accept the above defense opinions.

　　The Shanghai Securities Regulatory Bureau believes that Liu's behavior of using five securities accounts to hold and trade stocks in the past seven years constitutes a whole illegal act.

The Shanghai Securities Regulatory Bureau initiated an investigation into this case in August 2020, and the time limit for accountability has not exceeded.

　　The Shanghai Securities Regulatory Bureau believes that the relevant calculations are not inappropriate as to the range of cases involved, the source of funds, and the calculation of profit and loss proposed by Liu.

Moreover, the family situation is difficult, and it does not belong to the circumstances in which the administrative punishment should be lighter or mitigated as stipulated in the Administrative Punishment Law.

Practitioners are repeatedly prohibited from speculating in stocks

　　Securities practitioners have been repeatedly banned from illegally speculating in stocks. Under the "three orders and five applications" of supervision in recent years, super large orders are relatively rare, and most of them are "renewed cases".

　　The last time the regulation issued a fine of 100 million yuan was in July 2017.

At that time, the spokesperson of the China Securities Regulatory Commission, Gao Li, announced the administrative penalty decision on an "old case" of Lin Mouyi, a former securities practitioner, 13 years ago.

　　It was found out that Lin Mouyi worked in Southern Securities and CCB Investment from May 2001 to July 2009, and was a securities practitioner.

From July 2004 to June 2009, Lin Mouyi operated the "Jiang Mou" account to conduct securities transactions, during which 154 stocks were traded, with a transaction amount of 102 million yuan, and a total profit of about 70.65 million yuan.

The China Securities Regulatory Commission decided to confiscate Lin's illegal income of about 70.65 million yuan and impose a fine of the same amount, with a total fine of about 140 million yuan.

　　Judging from the situation in recent years, large fines of securities practitioners for illegal stock trading have also occurred from time to time.

　　In March 2021, the China Securities Regulatory Commission announced the punishment decision on Jiang Moutao, the former head of the Zhuhaijingshan Road Business Department of GF Securities, showing that he traded stocks illegally from December 2007 to March 2019, with a total transaction amount of 1.179 billion yuan and a profit. 14.9962 million yuan.

The China Securities Regulatory Commission finally decided to confiscate Jiang Moutao's illegal income of 14.9962 million yuan and impose a fine of 14 million yuan on him, with a total fine of nearly 29 million yuan.

　　At the level of the dispatched agency, the Shanghai Securities Regulatory Bureau issued a total of more than 57 million yuan of fines to Yang Mouhua, the then general manager of the Tengchong Guangdong Road Securities Business Department of Pacific Securities, because he used his mother's account to speculate in stocks. Accumulated profit of 14.34 million yuan.

This is a relatively large amount of fines imposed on securities practitioners by local agencies in recent years.

　　In May of this year, the Guangdong Securities Regulatory Bureau announced an administrative penalty decision, showing that Zhou Mouxin, a staff member of the Investment and Asset Management Operation and Maintenance Team of the Information Technology Department of GF Securities, used undisclosed information to trade wildly, converging the transaction amount of 106 million yuan, and was eventually fined and confiscated A total of 6.326 million yuan.

　　In fact, in recent years, due to market fluctuations, securities practitioners have been trading stocks illegally.

　　In April 2021, the Sichuan Securities Regulatory Bureau issued a decision on political punishment and a decision on market prohibition, showing that Liu Moujie, general manager of the Chengdu Shuncheng Street Business Department of Intime Securities, borrowed other people’s accounts to speculate in stocks, with a cumulative transaction amount of 424 million yuan and a trading loss of 263.02 10,000 yuan; privately accepted customer entrustment, the cumulative transaction amount exceeded 6.5 billion yuan, and the illegal income was more than 3.5 million yuan. In the end, Liu Moujie was fined and confiscated more than 14.3 million yuan, and the market was banned for three years.

　　In June 2021, Zhou Moutao, an employee of the Huaihe Road Sales Department of Cinda Securities in Bengbu, was punished by the Anhui Securities Regulatory Bureau for illegally speculating in stocks during his tenure.

Although the cumulative transaction amount was about 1.2 billion yuan, the loss after deducting commission taxes and fees was 6.4226 million yuan, and the CSRC imposed a fine of 200,000 yuan.

　　In addition, there are also practitioners who invested a huge amount of stocks on behalf of clients, but they did not encounter huge fines and confiscations because they did not receive revenue sharing.

In September 2021, the Guangdong Securities Regulatory Bureau disclosed information that Li Mouchang, then the customer service specialist of Essence Securities Foshan Lecong Sales Department, privately accepted the entrustment of customers to buy and sell securities, with a total transaction amount of 19.86 billion yuan; The transaction amount of securities was 11.581 billion yuan.

The total amount of the two illegal transactions was as high as 31.441 billion yuan, but both caused losses.

In the end, the Guangdong Securities Regulatory Bureau imposed a fine of 1 million yuan on Li Mouchang and a five-year ban on entering the securities market.

　　It is worth noting that institutions that illegally borrow other people's accounts for securities transactions will also incur regulatory penalties.

In July 2021, the Guangdong Securities Regulatory Bureau issued an administrative penalty decision showing that Jiachuang Fund was fined 500,000 yuan for illegally borrowing other people’s accounts to trade securities.

Among them, the total transaction volume of transactions amounted to 9.686 billion yuan.

Jiafu Technology borrowed 25 accounts to conduct on-site transactions, with a total transaction volume of 69.294 billion yuan, and was also punished by 500,000 yuan.