① The trend of continuous strengthening of financial supervision is obvious, and specialization continues to improve. More emphasis is placed on systematic “one game of chess” overall management, and the space for institutional arbitrage is continuously reduced. ② Regulatory penalties are a means. The purpose is to regulate the operation of trust companies, promptly investigate and fill gaps, and avoid industry risks.
Financial Services Association, April 30 (Reporter Gao Ping) Today, the State Financial Supervisory Authority announced a fine against Lujiazui Trust. Lujiazui Trust was fined 4.2 million yuan for seven illegal facts, including failure to use trust loans for agreed purposes. According to incomplete statistics, 3 trust companies have already been fined during the year, and the total amount of fines has exceeded 10 million yuan.
Trust industry insiders analyzed that the trend of continuous strengthening of financial supervision is obvious, and specialization continues to improve. More emphasis is placed on systematic “one game of chess” overall management, and the space for institutional arbitrage is continuously reduced. Is regulatory punishment a means or purpose is to regulate the operation of trust companies and strictly prevent the occurrence of systemic risks.
Lujiazui Trust was fined for the second time in the year, and net profit in 2023 fell sharply year on year
According to the fines issued by the State Financial Supervisory Administration, Lujiazui Trust was fined for 7 illegal acts, including untrue reports submitted to the supervisory authorities; untrue data on related parties and related transactions; financing real estate projects that did not meet the “432” requirements in the name of investment; failure to use trust loans for agreed purposes; misuse of trust funds to pay land concessions; unscrupulous disclosure of trust product information; and illegal acceptance of insurance fund investment management trust plans.
According to relevant regulations, the State Financial Supervisory Administration fined Lujiazui Trust 4.2 million yuan.
It is worth mentioning that this is not the first time that Lujiazui Trust has received a ticket this year. Going back to historical information, on April 9, the Qingdao Regulatory Bureau of the State Administration of Financial Supervision and Administration announced a fine against Lujiazui Trust. Lujiazui Trust was fined 300,000 yuan due to incomplete, untrue disclosure of information, and insufficient risk disclosure of illegal facts.
Lujiazui Trust is a trust organization controlled by Shanghai Lujiazui Financial Development Co., Ltd., with a registered capital of 10.4 billion yuan. Today, Lujiazui Trust's 2023 annual report was also freshly released. According to the data, Lujiazui Trust achieved net profit of 237 million yuan in 2023, while net profit in 2022 was 832 million yuan.
Trust companies have been fined a total of more than 10 million yuan since this year, far exceeding the same period last year
The trend of strong regulation continues. According to statistics, several trust companies have already been fined during the year. On February 18, the Beijing Supervisory Authority of the China Financial Supervisory Authority announced fines against Yingda Trust. For failure to perform careful and diligent business, review the authenticity of accounts receivable, and fail to monitor funds, Yingda Trust was fined a total of 1 million yuan.
Coincidentally, in early January, Kunlun Trust was also fined a total of 5.4 million yuan for various illegal acts, such as undertaking risk projects in violation of regulations in various ways; submitting untrue information to the supervisory authorities; inadequate due diligence management; inadequate management of investors; failure to carry out equity investment business in accordance with regulations; poor corporate governance; inaccurate risk classification of inherent business assets; and providing a channel for insurance companies to invest in a single trust in disguise.
Overall, three trust companies have been fined a total of 10.9 million yuan since this year. According to incomplete statistics, five trust companies were fined a total of 4.6 million yuan in the same period last year.
Liao Hekai, an analyst at Jinle Function Trust, said that the trend of continuous strengthening of financial supervision is obvious, and specialization continues to improve. More emphasis is placed on systematic “one game of chess” overall management to continuously reduce the room for institutional arbitrage. Supervision and punishment is a means. The purpose is to regulate the operation of trust companies, promptly investigate and fill gaps, avoid industry risks, and strictly prevent the occurrence of systemic risks. “Under the guidance of the new classification of trust business, it is expected that the trend of strong supervision will be normalized, and the level of trust supervision policy will continue to be iteratively upgraded.” Shuai Guorang, a researcher at the Benefit Trust, said.