Financial News
Written by: Zhang Weilun
2020-07-07 20:30
Last update date: 2020-07-07 20:30The China Securities Regulatory Commission pointed out that Li Yongfa, a former licensed representative of Begron Securities, prohibited him from re-investing in the industry for 20 months due to violations of the "Code of Conduct", starting from July 5 this year and ending on March 4, 2022.
The CSRC took the above disciplinary actions after investigation. The investigation found that from August 2016 to June 2017, Li Yongfa conducted transactions on the client's account in the form of an entrustment without obtaining prior written authorization from a client. He also did not obtain the written authorization of the other three users in advance to conduct entrusted transactions in their accounts.
The SFC also found that even though Li Yongfa knew that the client had difficulty understanding the Chinese document, he did not explain the Chinese account opening document and risk disclosure statement to the relevant client to ensure that the client understood the relevant content and risks before signing the document.
The SFC believes that Li Yongfa did not act with appropriate skills, prudence and diligence to maintain the best interests of customers; he also pointed out that Li Yongfa did not obtain written authorization for the entrusted transaction, which prevented his employer from monitoring and supervising the operation of relevant accounts , Also deprived customers of the protection, so that they bear the risk of unauthorized transactions in their accounts, thereby hurting the interests of customers.
The SFC has taken into account the relevant circumstances when deciding the above-mentioned sanctions, including Li Yongfa’s record of no disciplinary sanctions in the past.
China Securities Regulatory Commission
