Recently, another employee of the brokerage business department was named by the supervision because of the problem of "flying orders".

The named person is Guo. During his time as a securities broker in the business department of Liede Avenue in Guangzhou, First Venture (002797), he promoted wealth management products to customers that were not sold by his own company. SZ)。

In the view of Li Peng, an executive of a securities company, most people who dare to fly orders are old employees with certain work experience. They commit illegal acts under the guidance of high commission or human relations.

Securities brokers violate the rules of "flying orders"

Guo's supervision letter was issued by Guangdong Securities Regulatory Bureau.

In the supervision letter, Guo was accused of "after investigation, during your employment in the securities business department of Liede Avenue in Guangzhou, you recommended financial products to customers that were not sold by First Venture Securities Co., Ltd.".

According to the information of employees of China Securities Industry Association, Guo joined the business department of First Venture as early as August 20 10, and has been working here for1year. At first, Guo's registered practice post was "general securities business", and later it was changed to "securities broker" on August 20 16.

According to Tianyancha, the business department of Liede Avenue in Guangzhou, the first startup he worked for, was established on 20 10, and the current number of participants is 17.

According to the requirements, employees can only sell products produced by the company or products sold by the company. Like Guo, selling wealth management products without permission is either a financial product sold by his own company or a "flying order".

As Tian, dean of the Institute of Financial Development of Nankai University, said, employees' "flying orders" are mostly personal behaviors. Trying to get bonuses or rewards outside the rules is essentially profit-driven, which will harm the interests of financial institutions in the long run.

For the sales of wealth management products of brokers, the regulatory authorities have also issued relevant regulations.

Paragraph 5 of Article 10 of the Interim Provisions on the Administration of Securities Brokers stipulates that securities brokers may, according to the authorization of securities companies, deliver the publicity and promotion materials and related information of securities financial products uniformly provided by securities companies to customers during their practice.

Item 9 of Article 12 of the Interim Provisions on the Administration of Securities Brokers clearly stipulates that securities brokers shall not engage in other acts that harm the legitimate rights and interests of customers and disrupt market order.

Article 17 of the Regulations on the Administration of Financial Products Consigned by Securities Companies stipulates that personnel engaged in the activities of financial products consigned by securities companies shall meet the prescribed conditions and abide by the regulations on the administration of securities practitioners. A securities company shall conduct necessary training for financial product marketers to ensure that they fully understand the information of the financial products they are responsible for promoting and the internal management regulations and regulatory requirements related to consignment activities.

The problem of "flying orders" has occurred one after another.

The "flying order" of the sales department is a headache for brokers. From ordinary employees to the person in charge of the sales department, illegal "flying orders" have been repeatedly banned.

Since May this year, in addition to the first venture, at least two brokers have been named by the supervision because of the problem of "flying orders".

On July 27th, the former head of Dongguan Changping Zhenxing Third Street Securities Business Department of Wanlian Securities Co., Ltd. was named by Guangdong Securities Regulatory Bureau, which not only illegally recommended private placement products sold by non-Wanlian Securities, but also made a promise to protect capital and income.

On May 8, a brokerage firm of Jinyuan Securities was issued a warning letter by Shaanxi Securities Regulatory Bureau for "recommending financial products not issued or sold by Jinyuan Securities Co., Ltd. to customers in the business department and engaging in activities that conflict with the legitimate interests of the business department or investors".

Li Peng believes that even if the broker violates the "flying order" rule, the leaders of the sales department may know. "This needs to be viewed from two aspects. One is to turn a blind eye; Second, there is an interest transfer relationship to guide the' flying order'. The former is relatively more likely, and the latter is less likely because of the greater risk. "

Talking about the harm of "flying orders", Li Peng believes that if it is found that "flying orders" are due to compliance inspection rather than product consignment, the problem is relatively light; However, if the product itself has problems, investors can sue and hold sufficient evidence, which may involve fraud.

He further explained: "The organization itself is the endorsement of product reputation. Employees sell products in the name of their brokers that have not been assessed by brokers, which makes it easy for investors to buy products on the premise of endorsement by brokers. This is misleading to investors, and it is easy to cause customers to be misled to invest and bring losses to themselves. Especially the head brokers, because they have a higher institutional reputation, are more likely to mislead customers once they fly. "

He mentioned that "flying orders" damage not only the interests of investors, but also the credibility of institutions. Once there is a problem with Feidan products, investors often talk to brokers, which may lead to the decrease of investors' credibility with brokers.

How do brokers prevent employees from "flying orders" Li Peng believes that the key is to strengthen risk control management, specifically from three aspects:

First, strengthen grassroots training and legal compliance awareness training to effectively improve employees' compliance awareness and professional ethics;

Second, timely verification, verification in place, the audit department, compliance and risk control department and other departments to check at different levels, one place at a time, rather than a mere formality;

Third, once the problem is found, hell pays the bill.

In Tian's view, the problem of "flying orders" is ostensibly the personal behavior of employees, but the essence is the management of financial institutions. "Continue to promote strict supervision, requiring the key minority to earnestly take responsibility and improve the internal control management of financial institutions."

As for the identification measures of Feidan products, Li Peng suggested that investors should check whether there is a cooperation agreement before buying. He said: "If the product is sold by a compliant third party, the brokerage firm will sign a cooperation agreement with the third party. Investors can ask the staff to issue a cooperation agreement before purchasing products. The agreement should be stamped with the official seal of the brokerage firm instead of the personal seal. "

As previously reported by this newspaper, if "the product is not placed in the securities trading system" and "there is no clear" risk warning "and" guaranteed income commitment ",there is a greater possibility of" flying orders "