At the beginning of October this year, supervision focused on reporting the inspection and handling of illegal overseas research activities by investment and research personnel of five brokerage firms and fund companies. The reporter learned that recently, regulations have successively put forward detailed requirements for brokerage firms and fund companies to strengthen regulations on the use of commissions. In the future, it is planned to include commission use in the main focus of annual on-site inspections. If there are any irregularities, they will be dealt with strictly, highlighting the direction of supervision. Looking at the comprehensive multi-party investigation situation, the focus of supervision is on compliance control of the use of institutional fees: transaction commissions must not be used to transfer expenses such as expert consultation, research intermediaries, meetings, tickets, and machine wine that should be paid by oneself; they must not use false pretenses to provide cost support for excessive or illegal activities. At the same time, it is clear that fund companies must not disguise compensation for related expenses to brokerage firms by increasing the commission distribution ratio, increasing distribution points, and promising transaction volume. The regulation emphasizes that brokerage firms and fund companies should earnestly carry out self-inspection and self-examination, return excessive or improper expenses, and strictly pursue internal accountability for related issues. At present, the Seller Research Institute's research organization and buyer's fee review process will all be re-examined.

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