The Securities Law, the Regulations on the Supervision and Administration of Securities Companies, and other relevant laws and regulations clearly stipulate the obligations and professional standards that consulting institutions and personnel should fulfill in the process of conducting securities and futures investment consulting business. However, there are still many illegal individuals impersonating legitimate investment consulting institutions and fabricating the identity of professional wealth management personnel, using precise investment advice and helping investors obtain super high investment returns as bait, to deceive investors' trust, and carry out illegal securities investment consulting activities.
Wang, the legal representative of an investment management limited company in Shanghai, knowingly knows that the company does not have the qualifications to engage in securities investment consulting business. Without the approval of the national regulatory department, he engages in securities investment consulting business for the public without authorization. During this period, the company collected a consulting fee of approximately RMB 90000, and a total of RMB 760000 was collected for honest operation and consulting fees. Wang's behavior constituted the crime of illegal business operation, violated Article 225 of the Criminal Law of the China, and was eventually sentenced by the People's Court of Zhabei of Shanghai to two years of fixed-term imprisonment, two years of probation, a fine of 80000 yuan, and confiscation of all illegal income.
In another case related to illegal investment consulting, Mr. Wang was dismissed by an investment management group in Beijing. From February 2016 to September 2016, he repeatedly made up his identity as a salesperson in a financial management company in the security room of a primary school in Shijingshan District, Beijing, and cheated Mr. Guo to make a payment to his personal account by signing a false loan consulting and service agreement. A total of 340000 yuan of investment and financial funds were defrauded, During this period, Guo was refunded 52000 yuan in the form of rebates or other forms. The People's Court of Shijingshan District of Beijing held that Mr. Wang defrauded other people's financial resources for the purpose of illegal possession in the process of signing and performing the contract, which was huge and constituted a crime of contract fraud. Finally, according to the relevant provisions of Article 224 of the Criminal Law of the China, Mr. Wang was sentenced to four years and three months of fixed-term imprisonment, returned more than 280000 yuan to the victim, Guo, and fined 5000 yuan.
Article 122 of China's Securities Law stipulates that "without the approval of the securities regulatory authority of the State Council, no unit or individual shall engage in securities business." In the above two cases, illegal elements fabricated or fabricated the so-called professional investment consultant qualifications, used high returns to deceive investors' trust, and then fraudulently obtained investors' property through false transactions. Therefore, investors must always remain vigilant and enhance their risk prevention awareness during the investment consulting process.
Firstly, it is necessary to keep your eyes open and carefully verify whether the relevant institutions have the qualifications to engage in securities investment consulting business permitted by the China Securities Regulatory Commission. Investors can search for a list of legitimate institutions and personnel through the website of the China Securities Association. When conducting investment consulting, they should also carefully check whether the business license of the institution includes "securities investment consulting". The website of the China Securities Association has a column for information disclosure of illegal and counterfeit institutions, which investors can pay attention to.
The second is to be highly vigilant and not transfer funds to the other party's personal account. Legitimate securities investment consulting institutions generally charge consulting service fees through the company's dedicated collection account. For securities consulting activities that require money to be deposited into personal bank accounts, investors should be particularly careful. Investors can consult with securities investment companies and promptly report any abnormal situations to relevant regulatory authorities.
The third is to invest rationally, improve risk prevention awareness and self-protection ability. Investors should consciously stay away from illegal investment consulting firms that are lured by high returns, abandon the concept of overnight wealth, and not be blinded by false information of illegal elements with high returns and high returns. They should always maintain a rational investment mindset.
