The Paper reporter Tian Zhongfang Recently, four employees from the Shandong Sales Department of CITIC Securities were issued warning letters by the Shandong Securities Regulatory Bureau for privately organizing investors to "match orders" when selling private equity funds. "The

The Paper reporter Tian Zhongfang

Recently, four employees of CITIC Securities Shandong Sales Department were issued warning letters by the Shandong Securities Regulatory Bureau for privately organizing investors to "match orders" when selling private equity funds.

"The risk of private equity products is still relatively high, so the investment threshold is relatively high. Generally, the threshold is more than 1 million. Although many investors have investment intentions, they do not have investment qualifications. Therefore, there will indeed be some practitioners in the industry gathering some Investors who do not meet the investment threshold 'form a group' to make private equity investments," an industry insider told The Paper (www.thepaper.cn).

What is worth noting is that private equity fund sales chaos such as inducing unqualified investors to borrow money to invest, patch together purchases, etc. to meet formal qualified investor thresholds or certification process requirements has attracted regulatory attention. Regulatory authorities remind investors that they should proactively avoid various traps such as "collecting orders" and "joining orders" and beware of being deceived and suffering property losses.

Privately organized investors to "match orders" to purchase private placements, and four employees of CITIC Securities were issued warning letters

Shandong Securities Regulatory Bureau pointed out that after investigation, employees of CITIC Securities (Shandong) Co., Ltd. Zouping Daixi 3rd Road Sales Department, Zhang Tao, Liu Aiping, Sun Chunyan and Wang Liping each had one or more of the following problems in their sales of the "Jiangsu Hi-tech Nuggets No. 1 New OTC Market Investment Fund" business.

Specifically, first, the product risks were not fully disclosed to investors; second, returns were promised to investors; third, investors were privately organized to pool funds to purchase the fund under the name of designated customers; fourth, customer real-name management requirements were not implemented.

Shandong Securities Regulatory Bureau stated that the above-mentioned behavior reflects a weak awareness of compliance and irregular professional behavior, which violates the provisions of Article 4 of the "Interim Measures for the Supervision and Administration of Private Investment Funds" (CSRC Order No. 105).

The Shandong Securities Regulatory Bureau pointed out that in accordance with the provisions of Article 33 of the "Interim Measures for the Supervision and Administration of Private Investment Funds", it decided to take administrative supervision measures by issuing warning letters to Zhang Tao, Liu Aiping, Sun Chunyan and Wang Liping.

At the same time, the Shandong Securities Regulatory Bureau emphasized that lessons should be learned deeply, the awareness of compliance with laws and regulations should be strengthened, and such violations should be prevented from happening again.

It is understood that Article 4 of the "Interim Measures for the Supervision and Administration of Private Equity Investment Funds" stipulates: Private equity fund managers and institutions engaged in private equity fund custody business (hereinafter referred to as "private equity fund custodians") manage and use private equity fund properties and engage in private equity funds. Sales institutions (hereinafter referred to as "private fund sales institutions") and other private equity service institutions engaged in private equity fund service activities must fulfill their duties and fulfill their obligations of good faith, prudence and diligence.

Industry insiders pointed out that the investment threshold for private equity products is relatively high. Generally, the threshold is more than 1 million yuan. Although many investors have investment intentions, they are not qualified to invest. Therefore, some practitioners in the industry will indeed bring together some investors who cannot meet the investment threshold to "organize groups" to conduct private equity investments.

"Unqualified investors who have not reached the investment threshold of private equity funds often have low risk tolerance. If the private equity products they purchase suffer losses that exceed their tolerance, certain problems will inevitably arise." The industry insider emphasized.

It is reported that according to relevant regulations, private equity funds can only raise funds from qualified investors and cannot promise that the investment principal will not be lost or promise minimum returns. Qualified investors of private equity funds refer to units and individuals who have the corresponding risk identification and risk-taking capabilities, invest no less than 1 million yuan in a single private equity fund, and meet relevant standards. Among them, individual investors require financial assets of no less than 3 million yuan or personal average annual income in the past three years of no less than 500,000 yuan.

The phenomenon of "joining orders" is not an isolated case. Regulatory authorities remind investors that they should actively avoid

. It is worth noting that the phenomenon of "joining orders" to purchase products in the sales departments of securities firms is not an isolated case.

On April 7, 2021, the Shanghai Securities Regulatory Bureau announced that Zhang Jianmei, a securities practitioner at the Shanghai Liangcheng Road Sales Department of Deppon Securities, had jointly funded the purchase of relevant asset management plan products with clients during his tenure, and had agreed on returns and risks. According to the fact that they are jointly responsible, Zhang Jianmei was issued a warning letter in accordance with relevant regulations.

It is noteworthy that the chaotic sales of private equity fund products has attracted the attention of relevant regulatory authorities.

In July 2020, the Shenzhen Securities Regulatory Bureau pointed out that many private equity institutions induce unqualified investors to borrow money to invest, patch together purchases, etc. to meet the formal qualified investor threshold or certification process requirements, resulting in elderly buyers, relying on pensions Or invest life-saving money, etc. happen from time to time.

The Shenzhen Securities Regulatory Bureau previously issued a risk warning about individual private equity fund managers suspected of illegal fund-raising, reminding investors that according to relevant regulations, private equity funds only raise funds from qualified investors and are not allowed to promise that the investment principal will not be lost or promise Minimum returns, private equity fund managers are not licensed financial institutions, and the China Securities Investment Fund Management Association’s registration of private equity fund managers and private equity funds does not constitute recognition of their continued compliance status and professional investment capabilities.

The Shenzhen Securities Regulatory Bureau stated that investors should effectively enhance their awareness of investment risks, prudently judge the integrity and professionalism of private equity fund managers, keep their eyes open to identify various types of "pseudo private equity", and do not be swayed by gimmicks such as capital guarantees and high-yield promises. Temptation, proactively avoid various traps such as "collecting orders" and "joining orders", and beware of being deceived and suffering property losses.

Editor in charge: Wang Jie

Proofreader: Ding Xiao