There are multiple issues with fund sales operations, and Urumqi Bank has been ordered to rectify the situation.

Beijing Business Daily News (Reporter Song Yitong) announced on March 2nd that the Xinjiang Securities Regulatory Bureau issued a “Decision to Order Urumqi Bank Co., Ltd. to Correct.” After investigation, due to multiple issues with Urumqi Bank’s fund sales business, the Xinjiang Securities Regulatory Bureau decided to impose supervision and management measures requiring the bank to make corrections, and this will be recorded in the securities and futures market integrity archive.

Specifically, Urumqi Bank failed to report the appointment and filing materials of the head of its fund sales department to the Xinjiang Securities Regulatory Bureau as required, violating Article 11, Paragraph 1, and Article 56, Paragraph 1, Item 3 of the “Measures for the Supervision and Administration of Directors, Supervisors, Senior Management Personnel, and Practitioners of Securities and Fund Operating Institutions” (CSRC Order No. 195).

The bank also failed to report the resignation review report of the fund sales department head to the Xinjiang Securities Regulatory Bureau as required, violating Article 10 of the “Guidelines for the Content of Resignation Audits and Review Reports of Fund Industry Personnel” (CSRC Announcement [2020] No. 20). Additionally, the long-term investment returns of investors were not included in the performance evaluation indicators for branch offices and fund sales personnel, violating Article 30, Paragraph 1 of the “Measures for the Supervision and Administration of Publicly Offered Securities Investment Fund Sales Institutions” (CSRC Order No. 175).

Furthermore, Urumqi Bank also failed to promptly apply for a replacement after changes to the “Securities and Futures Business License” record, violating Article 5, Paragraph 3 of the “Implementation Regulations” (CSRC Announcement [2020] No. 58). Some personnel operating and maintaining the fund sales information management platform did not obtain fund practitioner qualifications, violating Article 17, Paragraph 1 of the “Regulations on the Supervision and Administration of Publicly Offered Securities Investment Fund Sales Institutions” (CSRC Announcement [2020] No. 58).

The Xinjiang Securities Regulatory Bureau pointed out that, according to Article 51, Paragraph 1 of the “Measures for the Supervision and Administration of Directors, Supervisors, Senior Management Personnel, and Practitioners of Securities and Fund Operating Institutions” (CSRC Order No. 195) and Article 53 of the “Measures for the Supervision and Administration of Publicly Offered Securities Investment Fund Sales Institutions” (CSRC Order No. 175), the bureau has decided to impose supervision and management measures requiring Urumqi Bank to make corrections, and this will be recorded in the securities and futures market integrity archive. Urumqi Bank should attach great importance, strengthen compliance management of fund sales business, strictly adhere to relevant laws and regulations, take effective corrective measures, and submit a written rectification report to the Xinjiang Securities Regulatory Bureau within 30 days of receiving this decision. The bureau will conduct inspections and acceptance based on the situation.