The Securities Law of the People’s Republic of China, Compliance Management Measures for Securities Companies and Securities Investment Fund Management Companies and other laws and regulations explicitly stipulate the duties and compliance management responsibilities of securities companies as underwriting institutions, including formulating and implementing compliance management systems, establishing a compliance management mechanism and preventing compliance risks. In 2020, CITIC Securities strictly obeyed the requirements of relevant laws and regulations and take a set of measures to ensure robust operation. In an effort to continuously optimize and regulate the compliance management mechanism, we have set out / revised 44 compliance management systems, including the Measures for Integrity Supervision and management (Exposure Draft), Information Barrier Procedures and Professional Integrity Regulations, in the current year. The Company is committed to strengthening the control over anti-money laundering, professional integrity and compliance, and promoting the implementation of relevant systems and mechanisms by means of process and system construction, promotion and education.
When onboarding, new employees are required to sign the Legal Responsibility Warning and Commitment Letter. A special chapter has been set out in the annual training of new employees to underline compliance with the law, honesty, integrity and other ethical requirements, foster compliance awareness in work among employees and effectively prevent from violations of conduct code, laws and regulations. As at the end of the reporting period, the Company was not aware of any significant violations of laws or regulations.
In 2020, the Company sorted out compliance management requirements and adopted a series of measures. In terms of integrating compliance management systems regarding information isolation, anti-money laundering, abnormal transaction detection, etc. with related systems of CITIC Securities South China, upgrading the abnormal transaction monitoring indicator system, establishing the risk assessment system of money laundering, sorting out and formulating the migration plan for the central control room, the Company effectively forestalled risks associated with information isolation, employee operation, interest conflict, anti-money laundering, abnormal transactions, etc.