The China Securities Regulatory Commission disciplined Western Securities Co. Ltd. for compliance breaches, including suspending its stock pledged repurchase transaction business for six months.
It also ordered the company to rectify breaches and discipline responsible staff within a limited time, according to a June 1 release. The suspension will take place between June 25 and Dec. 25.
Based on CSRC investigations, risk control measures such as due diligence and transaction tracking management for Western Securities' stock pledged repurchase transactions were found to be ineffective.
The watchdog also uncovered other breaches including the company's chief risk officer holding of other positions that conflicted with his responsibilities, and its fixed income division's failure to maintain a proper separation of business operations.
The company's risk management IT system was also not up to par, while its approval system for processing large private funds did not meet regulatory requirements.
Western Securities said it will actively address the breaches.
