Three Brokerages and Two Fund Companies Face Regulatory Action Over Overseas Research Violations

A recent regulatory notice revealed that some fund companies incurred expenses for expert consulting, research tickets, and other items during overseas research activities organized by securities firms' research institutes. This highlights deficiencies in the internal controls of relevant securities and fund companies. In some cases, securities firms paid round-trip airfare and hotel costs for fund company employees traveling abroad for personal tourism. In response, regulators have taken strict measures: G1 Securities Company received a regulatory talk for non-cooperation with inspections and was ordered to impose severe disciplinary actions on responsible personnel; H Securities, G2 Securities, F Fund, and H Fund companies were issued warning letters; and H Fund's fund manager was ordered to correct violations, with the company instructed to hold internal accountability.