Shenzhen Securities Regulatory Bureau said it found Minmetals Futures Co. had
weak program-trading risk controls for some asset-management products,
insufficient research capability for FOF products, marketing materials that
conflicted with actual product features, failure to effectively guard against
forced-liquidation risk in certain futures accounts, inadequate segregation of
incompatible duties, and research reports that did not follow required approval
procedures. The bureau issued a warning letter and ordered the firm to
strengthen active management and risk prevention in its asset-management
business, tighten compliance review of trading-advisory services, properly
assign and separate duties, fully implement risk-management and internal-control
systems, and accelerate disposal of defaulted asset-management products.
