Recently, Qingdao Damo Securities Investment Co., Ltd. (referred to as Damo Securities Investment) has been penalized. It was found that the company failed to preserve and intentionally damaged relevant documents and data according to regulations, and there were significant omissions in the documents submitted to the securities regulatory department. The amount involved in the related behaviors was substantial. Damo Securities Investment had its securities investment advisory business license revoked, and the investment advisory institution of Damo Securities Investment was placed under investigation.
Damo Securities Investment was established in 1997 with a registered capital of 52 million yuan. It has qualifications for securities investment advisory business and issuing securities research reports. The company is privately owned.
According to the notification from the China Securities Regulatory Commission, Damo Securities Investment and other parties involved have various issues. Firstly, they failed to preserve and damaged relevant documents and data as required: since 2020, Damo Securities Investment’s Jinan branch provided investment advisory services through the WeChat public account “Damo Index,” including course sales, viewing, sending information, interactive chat, and used third-party companies for online promotion services for investment education courses. Damo Securities Investment did not properly preserve the records related to the promotion of these services, and intentionally deleted some data in the database related to service records.
Secondly, there were significant omissions in the documents submitted to the securities regulatory department. The financial period in question was from August 2022 to July 2024, with a cumulative underreporting of operating income of 485 million yuan.
Damo Securities Investment was fined 3 million yuan. Three directly responsible managers or personnel were also penalized.