The "Securities Law" and "Regulations on the Supervision and Administration of Securities Companies" and other relevant laws and regulations clearly stipulate the obligations and professional standards that consulting agencies and consultants should perform in the process of conducting securities and futures investment consulting business. However, there are still many criminals posing as formal investment consulting agencies and fictitious professional wealth management clerks, using the bait to provide accurate investment consulting advice and helping investors obtain super high return on investment income, defrauding investors’ trust, and implementing illegal securities investment consulting And other activities.
Wang, the legal representative of an investment management company in Shanghai, knew that the company did not have the qualifications to engage in securities investment consulting business, and without the approval of the national competent authority, carried out securities investment consulting business for the public. During the period, the company collected consulting fees of approximately RMB 90,000, and collected honest operation fees and consulting fees totaling more than RMB 760,000. Wang’s behavior constituted the crime of illegal business operations and violated Article 225 of the Criminal Law of the People’s Republic of China. He was eventually sentenced by the People’s Court of Zhabei District, Shanghai to two years’ imprisonment, suspended for two years, and a fine of RMB 80,000 and confiscated. All illegal gains.
In another illegal investment consulting-related case, after Wang was dismissed by a Beijing Investment Management Group Co., Ltd., from February 2016 to September 2016, he fictionalized himself in the security room of a primary school in Shijingshan District, Beijing, and other places. The wealth management company’s clerk status deceived Guo to send money to his personal account by signing a false lending consultation and service agreement, defrauding a total of 340,000 yuan in investment and wealth management funds, and returning Guo to 52,000 yuan in the form of rebates during the period. The People’s Court of Shijingshan District of Beijing believed that Wang had defrauded others’ financial affairs for the purpose of illegal possession during the process of signing and performing the contract. According to the relevant regulations, Wang was sentenced to four years and three months in prison, the victim Guo was refunded more than 280,000 yuan, and a fine of 5,000 yuan was imposed.
Article 122 of China’s "Securities Law" stipulates: "Without the approval of the State Council’s securities regulatory agency, no unit or individual may engage in securities business." In the above two cases, criminals fabricated and fabricated the so-called professional The qualifications of investment consultants use high returns to defraud investors’ trust, and then defraud investors’ property through false transactions. Therefore, investors must always remain vigilant during the investment consulting process and raise awareness of risk prevention.
One is to keep your eyes open and carefully check whether the relevant institutions have the qualifications of the China Securities Regulatory Commission to engage in securities investment consulting business. Investors can inquire the list of legal institutions and personnel through the website of the Securities Association of China. When making investment consultations, they should also carefully check whether the business license of the institution includes “securities investment consultation”. The website of the Securities Association of China has a column for information disclosure of illegal counterfeiting institutions, and investors can pay attention to it.
The second is to be highly vigilant and never send money to the other party's personal account. Legal securities investment consulting agencies generally charge consulting service fees through the company's special collection account. Investors must be extra careful for securities consulting activities that require money to be deposited into personal bank accounts. Investors can consult with securities investment companies, and if they find abnormal situations, they should promptly report to relevant regulatory authorities.
The third is to invest rationally, improve risk prevention awareness and self-protection capabilities. Investors should consciously stay away from illegal investment consulting agencies that use high yields as a temptation, abandon the idea of getting rich overnight, do not be blinded by false information about high yields and high returns by illegal elements, and always maintain a rational investment mentality. (Source: SFC website)
