You gotta hand it to the China Securities Regulatory Commission: It can make even the most routine punishment for failing to stop an employee's insider-trading sound unsettlingly Orwellian.
The China Securities Regulatory Commission said on Friday that it will suspend all approvals for new business and new products by Bosera Asset Management Co., the country's fifth-largest fund-management company by assets under management, ordering the company to undergo a six-month "rectification" period.
"The company has had shortcomings in its policing of abnormal transactions in its own fund products," the commission's spokesman said at a news briefing. "It didn't conduct proper monitoring of the securities accounts of the company's staff and their direct relatives…."
On Tuesday, the nation's legal supervisory body said that Ma Le, a former fund manager at Bosera, had been arrested on suspicion of making improper profits by buying shares on insider information. The CSRC spokesman said Friday the amount of profit in question was 18.83 million yuan ($3.1 million).
Mr. Ma was suspected of front-running fund clients between March 2011 and May 2013.