China's ** newspaper Chenxi's "strict supervision" situation continues, and there are warning letters from listed brokers! On February 26, the official website of the China Securities Regulatory Commission showed that the Chongqing Securities Regulatory Bureau took administrative supervision measures to issue warning letters to Southwest ** and its practitioners. 
From the perspective of the reasons for violations of laws and regulations, there are problems such as arranging employees who have not obtained ** qualifications to engage in ** business, failing to fully guarantee the independence of compliance management personnel, and assessing individual full-time compliance management personnel on the basis of business performance. Employees engaged in ** business "work without a license".There are problems with compliance managementAfter investigation, Southwest ** was named by the Chongqing Securities Regulatory Bureau this time, mainly due to the following problems: first, arranging employees who have not obtained the first qualification to engage in the first business, second, not fully protecting the independence of compliance management personnel, and third, assessing individual full-time compliance management personnel based on business performance. 
According to the Measures for the Supervision and Administration of Directors, Supervisors, Senior Managers and Employees of Business Institutions, business institutions shall not employ persons who do not meet the qualifications as directors, supervisors, senior managers and heads of branches, shall not employ persons who do not meet the requirements for employment to engage in business and related management work, and shall not violate the provisions to authorize personnel who do not meet the conditions for employment or employment to actually perform relevant duties. At the same time, the Measures for the Compliance Management of Companies and Investment Management Companies require that the business entity shall ensure the independence of the compliance officer and compliance management personnel. **The business institution shall formulate an evaluation and management system for the person in charge of compliance, the compliance department and the full-time compliance management personnel, and shall not adopt evaluation methods that are not conducive to compliance independence, such as evaluation by other departments or based on the business performance of the business department. Based on this, the Chongqing Securities Regulatory Bureau decided to take administrative supervision measures to issue a warning letter to Southwest **. At the same time, Liu, an employee of Southwest **, engaged in ** business without obtaining ** qualifications during his employment, and was also issued a warning letter by the Chongqing Securities Regulatory Bureau. As early as 2017, the regulator issued a document requiring securities firms to strengthen the compliance of all employees, optimize the compliance management organization system, and improve the level of compliance management from the aspects of compliance management responsibilities, compliance management guarantee mechanism, and self-discipline management. Since then, the industry's leading companies have continued to improve in terms of compliance staffing, compliance assessment, and compliance personnel compensation, but there are still some securities companies that have been fined by regulators due to insufficient attention to compliance issues. The performance is expected to increase in 2023Repeatedly fined by regulatorsAccording to public information, Southwest ** was established in 1999 and was jointly initiated and established by other shareholders on the basis of the former Chongqing Price** Company, the former Chongqing International Trust and Investment Department, the former Chongqing ** Company and the former Chongqing ** Registration Co., Ltd. In 2009, Southwest ** landed on the Shanghai Stock Exchange and became the first listed financial institution in Chongqing. In terms of performance, according to the 2023 annual performance pre-increase announcement released by Southwest **, it is expected that the net profit attributable to the owners of the parent company will be about 5 in 20237.2 billion to 66.5 billion yuan, an increase of about 26.3 billion yuan to 35.6 billion yuan, an increase of about 85% to 115% year-on-year. As for the reasons for the expected increase in performance, Southwest ** said that during the reporting period, the company's investment income and fair value change income increased significantly, and the overall operating performance increased sharply year-on-year. However, in 2023, Southwest China has repeatedly been named by regulators. For example, in June 2023, Southwest ** and two analysts were issued a warning letter by the Chongqing Securities Regulatory Bureau due to problems in the business of publishing research reports. The Chongqing Securities Regulatory Bureau pointed out that there are problems such as unsound internal control and process management, unreasonable assessment incentives, and imprudent views in individual research reports. In November 2023, the administrative penalty decision issued by the Heilongjiang Branch of the State Administration of Foreign Exchange showed that the Heilongjiang Branch of Southwest ** failed to submit financial accounting reports, statistical statements and other materials in accordance with the regulations, and was given a warning and a fine of 50,000 yuan by the Heilongjiang Branch of the State Administration of Foreign Exchange. In December 2023, the Zhejiang Securities Regulatory Bureau issued a warning letter to Southwest **. In the on-site inspection, the Zhejiang Securities Regulatory Bureau found that Southwest ** did not strictly fulfill the supervision obligation of the issuer to raise funds in the management of corporate bonds in the jurisdiction. The Zhejiang Securities Regulatory Bureau requires Southwest ** to learn lessons seriously, strictly abide by the practice norms and regulatory rules, improve the ability to perform duties and responsibilities, avoid recurrence of violations, and submit a written report within 10 working days from the date of receipt of the decision. In addition, a director in Southwest ** was issued a warning letter by the Chongqing Securities Regulatory Bureau in September 2023 due to the transaction of relatives**. Southwest ** said that its company attaches great importance to this matter, and will once again require shareholders holding more than 5% of the shares and all directors, supervisors and senior managers to strengthen the study of relevant laws, regulations and normative documents, and strengthen the supervision of relatives' behavior. Editor: Xiaomo Review: Chen Mo.