On June 18th, Gelunhui reported that Guao Electronic Technology (300551.SZ) recently received the [2024] No.58 decision on the administrative regulation measures for suspending the supervision of new customers issued by the Guangdong Regulatory Bureau of the China Securities Regulatory Commission, which is the specific content of the document:
"After investigation, our bureau found the following violations by your company: first, during the period of suspending the supervision of new customers, there were new customer behaviors, reflecting that the internal control of your company is not sound and the compliance management is inadequate. Second, there are cases of implying benefits in the process of business promotion and investment consulting services. The investment advice provided to customers lacks reasonable basis, and personnel who have not registered with the China Securities Industry Association as "investment consultants" provide investment advice to customers without informing the name and registration code of securities investment consultants. Third, providing securities investment consultancy services without signing a securities investment consultancy agreement with customers. Fail to assess the customer's risk tolerance strictly, and some customers lack risk testing and suitability evaluation result confirmation letters."
The above behaviors violate the provisions of Article 4 of the Provisional Measures for the Administration of Securities and Futures Investment Consulting Management (CSRC Announcement [1997] No.96) and Articles 3, 7, 12(2), 14(1),15,16,19 and 24 of the Interim Provisions on Securities Investment Consulting Business (CSRC Announcement [2020] No.66). In accordance with the provisions of Article 170(2) of the Securities Law and Article 32 of the Interim Provisions on Securities Investment Consulting Business, our bureau has decided to take regulatory measures to suspend the supervision of new customers for your company and order your company to suspend new customers for six months from the date of receipt of this decision.
Your company should immediately carry out comprehensive rectification work, further strengthen internal control, and effectively improve compliance management. After the suspension period of new customers expires, your company should complete the rectification work and submit a written rectification report to our bureau, and our bureau will verify and accept the rectification situation.
"If you are dissatisfied with this regulatory measure, you can apply for administrative reconsideration to the China Securities Regulatory Commission within 60 days from the date of receipt of this decision, or file a lawsuit with the people's court having jurisdiction within 6 months from the date of receipt of this decision. During the period of administrative reconsideration and litigation, the above regulatory measures will not be suspended."