CSRC: Some licensed organizations obstruct inspections, warning that violators may face penalties

The Securities and Futures Commission (SFC) issued a circular to licensed corporations yesterday (29th), stating that during inspections, some licensed corporations obstructed its regulatory work, including attempts to delay or refuse inspections, deliberately providing incomplete responses, and even concealing information. There were also instances of submitting illegal, false, or forged documents.

The SFC has reiterated in the circular that licensed corporations must fully cooperate with inspections and fulfill their statutory responsibilities. The SFC emphasized that all licensed corporations are obligated to accept inspections, should be prepared, and respond promptly to the SFC's requests for necessary information.

The SFC stated that if anyone attempts to obstruct inspection work, making it impossible for the SFC to determine whether a licensed corporation complies with relevant regulations, the SFC will not hesitate to exercise its powers and take appropriate regulatory measures. These measures may include attaching conditions to the licenses of licensed institutions or, if necessary, restricting their business and activities, such as prohibiting certain transactions, suspending the establishment of business relationships with new clients, or limiting asset handling. In addition, the SFC may refer relevant matters to regulatory authorities in Hong Kong, mainland China, or other overseas jurisdictions, assessing whether joint regulatory actions are necessary based on the circumstances