CCTV News:According to the WeChat official account news released by the CSRC, on July 5th, the General Office of the State Council forwarded the Opinions on Further Improving the Comprehensive Punishment and Prevention of Financial Fraud in the Capital Market (hereinafter referred to as the Opinions) from the China Securities Regulatory Commission, the Ministry of Public Security, the Ministry of Finance, the People’s Bank of China, the General Administration of Financial Supervision and the State-owned Assets Supervision and Administration Commission of the State Council. The spokesman of China Securities Regulatory Commission answered a reporter’s question on the Opinions.
1. What are the main considerations in formulating the Opinions?
Financial fraud destroys the integrity foundation of the capital market and seriously infringes on the legitimate rights and interests of investors. Combating financial fraud in the capital market is a consistent focus of securities supervision and law enforcement. In recent years, China Securities Regulatory Commission has continuously improved its supervision and law enforcement, improved its law enforcement system and mechanism, and a number of major typical cases have been punished in time. From 2021 to 2023, a total of 397 cases of illegal information disclosure of listed companies were handled, including 203 cases of fraud. Since 2021, more than 150 criminal cases involving financial fraud, fund occupation and illegal guarantee have been transferred to public security organs. Promote the establishment of a class action system, in which Kangmei Pharmaceutical compensated investors for 2.459 billion yuan, and Amethyst Storage and Zeda Yisheng compensated more than 1.3 billion yuan. Resolutely implement major illegal forced delisting, and pursue the illegal behavior of delisting companies to the end, providing a basis for small and medium investors to claim compensation from the company and the responsible subject. Judging from the situation in recent years, the phenomenon of "white horse stocks" suddenly exploding due to fraud has been significantly reduced, and the market ecology has continued to improve.
With the strengthening of law enforcement, combating and preventing financial fraud is also facing some new situations and problems. For example, the concealment and complexity of financial fraud have increased significantly, making it more difficult to find and investigate. Especially in many cases recently investigated, the problem of third-party cooperation with fraud has emerged and aroused great concern in the market. At the same time, the current supervision and law enforcement mechanism of China Securities Regulatory Commission has been running for many years, which can not fully adapt to the new changes. Compared with the expectations of all parties in the market, the punishment and comprehensive effect are not enough. On the whole, fake companies are still a minority, and listed companies are always outstanding representatives of Chinese enterprises. However, financial fraud has a great impact on market confidence, and it is very harmful to the interests of investors. It is urgent for all departments and regions to form a joint force in a multi-pronged manner, and to eliminate it with heavy punches and resolutely curb it. At the same time, it is also necessary to attack and prevent both the symptoms and the root causes, deepen corporate governance, compact the responsibility of intermediaries, increase the supply of basic systems, and prevent fraud from the source.
2. What are the main contents of the Opinions?
The Opinions focus on comprehensively punishing financial fraud in the capital market, adhere to the systematic concept, further intensify the crackdown, focus on improving the regulatory coordination mechanism, and build a comprehensive long-term mechanism for punishment and prevention. The Opinions consists of 20 items, which are divided into three parts: the first part is the general requirements, the second part is the main content, and the third part is the implementation of guarantees. The main part puts forward 5 aspects and 17 specific measures.
First, resolutely crack down on and curb financial fraud in key areas. Including severely punishing fraudulent issuance of stocks and bonds, false information disclosure, misappropriation of raised funds and evasion of debts, severely cracking down on systematic fraud and third-party cooperation fraud, strengthening supervision over the abuse of accounting policies to implement fraud, and strengthening the crackdown on financial fraud in specific fields.
The second is to optimize the system and mechanism of securities supervision and law enforcement. Including improving the clue discovery mechanism, giving play to the supporting role of scientific and technological means, and enhancing the ability to penetrate supervision. Accelerate the regulatory transformation, improve the investigation and punishment mechanism of major cases, and improve the quality and efficiency of investigation. Deepen the cooperation between securities law enforcement and judicial organs in information sharing, case handling, warning education, etc., and improve the efficiency of investigating major cases.
The third is to increase all-round and three-dimensional accountability. Including speeding up the introduction of regulations on the supervision of listed companies and strengthening the deterrence of administrative accountability. Promote the judicial interpretation of the crime of breach of trust harming the interests of listed companies, and strengthen the criminal accountability of the "key minority" and the counterfeiters who constitute the crime. Improve the civil accountability support mechanism, promote the simplification of registration, litigation, execution and other procedures, strengthen compensation and relief for investors, and increase the comprehensive illegal cost.
The fourth is to strengthen inter-ministerial coordination and coordination between the central and local governments. Including the investors of state-owned assets and the competent departments of relevant enterprises to strengthen supervision and management, and seriously pursue the responsibility of financial fraud and cooperation with related enterprises and report feedback. The financial regulatory authorities have intensified their concerted efforts to crack down, urged financial institutions to pay more attention to and examine the financial authenticity, and intensified their supervision and inspection of the compliance of the letter-issuing business. Local governments regard financial authenticity as an important basis to help the superior and limit the inferior, and earnestly fulfill the responsibility of territorial disposal of risks caused by financial fraud.
Fifth, normalization and long-term prevention and control of financial fraud. Including strengthening the endogenous constraints of corporate governance, strengthening the anti-fraud duties of audit committees, giving play to the supervisory role of independent directors, and promoting the establishment of accountability mechanisms within the company. We will tighten the responsibility of "gatekeepers" of intermediaries, suspend or prohibit securities services for intermediaries with major violations of laws and regulations, improve the relevant rules of accounting and auditing in the capital market, and strengthen joint punishment and social supervision.
3. What has the China Securities Regulatory Commission done to strengthen three-dimensional accountability?
China Securities Regulatory Commission attaches great importance to increasing the illegal cost of financial fraud and the protection of investors involved, and actively promotes the construction of a three-dimensional accountability system of administrative law enforcement, civil accountability and criminal crackdown. First, at the legislative level, we will promote the revision of the Securities Law, and the upper limit of fines for companies and responsible persons who violate the rules will be greatly increased from 600,000 yuan and 300,000 yuan to 10 million yuan and 5 million yuan, and the upper limit of fines for fraudulent issuance will be increased from 5% of the raised funds to 1 time; The Criminal Law Amendment (XI) raised the maximum sentence for illegal disclosure from 3 years to 10 years; Intermediaries and employees who issue false documents can be sentenced to a maximum of 10 years in prison. Second, in the three-dimensional accountability, administrative punishment is a part of the three-dimensional accountability, and criminal accountability and civil compensation are also important components of the three-dimensional accountability. In terms of criminal accountability, more than 40 cases of financial fraud, fund occupation and illegal guarantee have been transferred to public security organs according to law this year. In terms of civil accountability, China Securities Regulatory Commission guides the investor service center, actively supports investors to initiate civil recovery litigation, and comprehensively uses advance payment, support litigation and subrogation litigation to strengthen investor compensation relief. At present, there are 10 cases in which listed companies (including some delisting companies) support investors to apply to the people’s court to initiate ordinary representative lawsuits, and 22 cases are under trial.
The "Opinions" will take increasing all-round and three-dimensional accountability as an important content. On the basis of existing work, we will further deepen the convergence of execution of major cases, highlight the key attacks on financial fraud companies and "key minorities", focus on "chasing the first evil" and severely punish the planners and organizers of fraud. Strengthen the criminal accountability of controlling shareholders and actual controllers for organizing fraud and embezzlement. Improve the civil accountability support mechanism, promote the simplification of registration, litigation, execution and other procedures, improve the model judgment mechanism, increase the application of the special representative litigation system, and facilitate investors to obtain compensation.
4. What will be done to promote the implementation of the Opinions in the next step?
The Opinions is an important institutional arrangement for building a comprehensive system to punish and prevent financial fraud in the capital market. At present, the China Securities Regulatory Commission has formulated a detailed work plan to implement the Opinions. In the next step, we will actively work with state-owned assets supervision and administration institutions, financial supervision departments, relevant enterprise departments, public security organs, local governments, etc. to further enhance the sense of responsibility, work closely together to form a joint force, and promote the implementation of various tasks and requirements of the Opinions. The first is to intensify the crackdown and punishment. Strengthen the investigation of financial fraud risks in key areas, severely punish and crack down on financial fraud, embezzlement and third-party cooperation fraud, seriously deal with violations of laws and regulations in accordance with the law, and timely report. The second is to optimize the working mechanism. China Securities Regulatory Commission will consult with relevant departments on the prevention and control of financial fraud in related fields, and work together to promote the implementation of all work. Relevant departments will also strengthen internal supervision, and those who fail to perform their duties in management or supervision will be seriously held accountable. The third is to increase publicity and guidance. Through various means, strengthen the propaganda and interpretation of the Opinions and the guidance of public opinion, and actively respond to market concerns. Relevant departments should give more guidance to the invested enterprises, supervisors or supervisory enterprises, and earnestly do a good job in the implementation of various arrangements.
关于作者