CSRC Jilin Bureau Issues Warning to Founder Securities Yanji Branch Over Internal Control Failures
On September 24, 2024, the Jilin bureau of the China Securities Regulatory Commission (CSRC) issued a warning letter to the Yanji Aidan Road branch of Founder Securities and its manager, Jiang Hongguo, citing inadequate segregation of duties, failure to regulate employee conduct, and an imperfect compensation mechanism. The branch must rectify issues within one month and submit a written report. The warning will be recorded in Jiang Hongguo's integrity file.
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China Regulator Warns Founder Securities Branch Over Inadequate Internal Controls
The Jilin bureau of the China Securities Regulatory Commission (CSRC) issued a warning to the Yanji Aidan Road securities营业部 (branch) of Founder Securities Co., Ltd., and its manager, Jiang Hongguo, on September 24, 2024. The regulatory action, disclosed on the CSRC website, cited three violations: failure to properly segregate duties among marketing, technology, and account processing roles; inadequate supervision of employee conduct; and an imperfect compensation mechanism. These breaches violate the Securities Brokerage Business Management Measures and the Compliance Management Measures for Securities Companies and Securities Investment Fund Management Companies. The branch and Jiang Hongguo have been ordered to rectify the issues within one month and submit a written report. The warning will be recorded in Jiang Hongguo's securities and futures market integrity file. The action underscores ongoing regulatory scrutiny of internal controls and compliance at Chinese securities firms.
Read sourceChina regulator issues warning to branch head over internal control failures
The Jilin Securities Regulatory Bureau has issued a warning letter to Jiang Hongguo, the head of the Yanji Aidan Road securities business department of Founder Securities Co., Ltd., for failing to ensure proper internal controls and compliance. An investigation found that the branch had inadequate separation of duties and failed to strictly regulate employee conduct, violating Article 40 of the Securities Brokerage Business Management Measures and Article 6, Item 4 of the Compliance Management Measures for Securities Companies and Securities Investment Fund Management Companies. As the branch head, Jiang Hongguo bears direct responsibility for these violations. The regulatory action includes a written warning, entry into the securities futures market integrity archive, and a requirement to submit a written rectification report within one month. The decision, dated September 23, 2026, allows for administrative reconsideration or legal appeal within specified timeframes.
Jilin regulator issues warning letter to Founder Securities Yanji branch
On September 24, the Jilin Securities Regulatory Bureau issued a warning letter to the Yanji Aidan Road Securities Business Department of Founder Securities Co., Ltd., citing multiple compliance failures. The problems identified include inadequate segregation of duties, where marketing, technical, and account business processing roles were not effectively separated; failure to strictly regulate the professional conduct of staff; and an imperfect compensation distribution mechanism. These actions violated provisions of the Securities Brokerage Business Management Measures (CSRC Order No. 204) and the Compliance Management Measures for Securities Companies and Securities Investment Fund Management Companies (CSRC Order No. 166). The Jilin bureau ordered the business department to rectify all issues within one month of receiving the decision and to submit a written rectification report. The warning letter is an administrative supervisory measure, not a fine, but signals regulatory scrutiny over internal controls at the brokerage's local branch.
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Jilin Securities Regulator Issues Warning Letter to Founder Securities Yanji Branch
On September 24, the Jilin branch of the China Securities Regulatory Commission (CSRC) issued a warning letter to the Yanji Aidan Road Securities Business Department of Founder Securities Co., Ltd. The regulatory action was taken after an inspection revealed three major compliance failures: inadequate segregation of duties among marketing, technology, and account processing positions; failure to strictly regulate employee conduct; and an imperfect compensation distribution mechanism. These violations contravene Articles 38 and 40 of the Securities Brokerage Business Management Measures (CSRC Order No. 204) and Article 6, Item 4 of the Compliance Management Measures for Securities Companies and Securities Investment Fund Management Companies (CSRC Order No. 166). The Jilin CSRC ordered the business department to rectify all identified issues within one month of receiving the decision and to submit a written rectification report. The warning letter serves as an administrative supervision measure, highlighting ongoing regulatory scrutiny of brokerage operations in China.
Read sourceFounder Securities branch receives regulatory warning over job separation failures
On September 24, the Jilin Securities Regulatory Bureau disclosed that a branch of Founder Securities, the Yanji Aidan Road Securities Business Department, was issued a warning due to multiple issues including inadequate separation of job responsibilities. The regulator found that the branch failed to properly segregate duties, posing operational risks. Additionally, Jiang Hongguo, the head of the Yanji Aidan Road Securities Business Department, was held directly responsible for these violations. The Jilin Bureau decided to issue a warning letter to Jiang Hongguo and record the matter in the securities futures market integrity file. The article originates from Beijing Business Today and was republished on East Money's company news section.
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