SSRC comes down heavy on Shanghai Tiantian Fund Sales Co
10 January 2014
Category: News, Asia, China
By Asia Asset Management
Shenzhen-listed East Money Information Co announced on January 9 that its wholly-owned fund distributor, Shanghai Tiantian Fund Sales Co, had been issued with a “decision on administrative supervision measures” from the Shanghai Securities Regulatory Commission (SSRC) with regard to misleading sales practices.
The SSRC stated that Shanghai Tiantian Fund Sales Co had offered “100% guarantees” and “10% annual returns” in the course of selling its fund products. Unsubstantiated claims such as these infringe upon the regulators’ Measures for the Sale of Securities Investment Funds. As such, the SSRC has ordered the fund distributor to amend its marketing materials.
The China Securities Regulatory Commission (CSRC) previously announced it is cracking down on misleading and dishonest online fund promotions and marketing activities.
Shanghai-based East Money Information Co operates a financial and economic information services platform. The company primarily sells financial data and internet advertising services through its website Eastmoney.