Caitong Securities Issued Warning Letter for Brokerage, Proprietary Trading Internal Control Deficiencies
Caitong Securities Co. , Ltd. has been issued a warning letter by the Zhejiang Securities Regulatory Bureau for internal control deficiencies in its brokerage and proprietary trading businesses. The regulator found inadequacies in the brokerage business including internal system construction, account monitoring and early warning processing, and authority management. In the proprietary trading business, deficiencies were identified in department independence, trade order review, inquiry monitoring, compliance staffing, and audit work. The warning letter has been recorded in the securities and futures market integrity file.
The Zhejiang Securities Regulatory Bureau of the CSRC has taken the administrative supervision measure of issuing a warning letter to Caitong Securities Co. , Ltd.
Upon investigation, the brokerage business of Caitong Securities showed inadequacies in internal system construction, account monitoring and early warning processing, and authority management. In the proprietary trading business, there were inadequacies in the independence of departmental and functional positions, review of trading orders, monitoring of inquiry activities, assignment of compliance personnel, and audit work. The measure has been recorded in the integrity file of the securities and futures market.
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