Risk mitigation in regulatory compliance has become increasingly important for both the regulatory authorities and listed companies as the capital markets in China evolve and perfect. 2017 could be the severest year in the history of the Chinese capital markets, while the China Securities Regulatory Commission pointed out clearly that they will continue strengthening the regulation of capital markets. Directors, supervisors and senior executives of listed companies as well as other gatekeeping intermediary organizations of capital markets have felt the urgency to define what is to be “due diligent”.
On January 26, 2018, partnering with KPMG China, Jingtian & Gongcheng hosted the seminar “How to be a Gatekeeper ‘on the Capital Market’ “in Beijing attended by over one-hundred directors, supervisors and senior executives from securities firms, large-scale investment organizations and listed companies.
KPMG Huazhen LLP senior partner— Jun Zou and managing partner of Jingtian & Gongcheng – Xiang Gao delivered an opening speech.
In the first half of the seminar securities compliance control partner from Jingtian & Gongcheng — Siyuan Liu led the group to discuss what is due diligence from the Securities Regulatory Commission’s point of view. Attorney Liu introduced the focus of security compliance control in the recent years and gave a macro view of the basis and impact of administrative penalties. Summarizing and clarifying the investigation focus and analysis procedure of the securities compliance control commission in several major cases, Attorney Liu laid out the logic, standard and thought process of defining “Due Diligence”. She used case studies to stress having the mentality of being a “gatekeeper”, remaining independent, neutral and ethical, which will lead to being due diligent in practice.
KPMG China veteran partner — Xing Su from an auditor’s perspective shared how to avoid “the minefield “by discovering fraudulent practice early in an enterprise’s fiscal affairs. Mrs. Su shared a roadmap displaying the logic behind typical corporate financial frauds, which, equivalent to an expert detective, was the key to uncovering every one of the fraud cases without exception. Relying on this magic graph and armed with professional acuity, corporate directors, supervisors, senior executives and financial regulators as well as large and medium intermediaries could discover problematic areas in a financial statement.
Both the concept and content of the seminar, practical and alarming, were warmly received by all the participants, who wished the session lasted more than 3 hours and wished for more such public sessions as this one with volumes of both useful content and humorous asides.
Jingtian & Gongcheng has already opened a series of training seminars on” Insider Trading Risk Control”, “Practical Skills in Misrepresentation on Securities Litigation”, and “Due Diligence for Intermediaries, Directors, Supervisors and Senior Executives: How?” The law firm will continue strengthening its partnership with KPMG to jointly provide legal and finance combined services for all entities on the capital market.
Siyuan Liu Partner
Jintian & Gongcheng
（86 10） 5809 1385
liu.siyuan@jingtian.com
Xing Su Partner
KPMG China
（86 10）8508 7312
nelly.su@kpmg.com
