A securities professional from a major brokerage has been penalized for secretly managing a client's trading account, leading to substantial financial damage. The Hunan Securities Regulatory Bureau issued an administrative penalty decision on September 18, targeting Zhongtai Securities employee Yang Wenming for unauthorized client account management.

According to the regulatory filing, Yang Wenming, a securities practitioner at Zhongtai Securities, accepted a mandate from client Tan Mou during multiple separate periods. Between October 10 and November 30, 2017, from April 24, 2020 to January 14, 2021, and again from November 3, 2022 to January 4, 2024, Yang executed trading instructions on Zhang Mou's standard securities account. The total transaction volume reached 191,297,302.35 yuan, resulting in a book loss of 1,829,166.02 yuan.

Additionally, from November 10, 2017 to March 6, 2024, Yang accepted the same client's mandate to operate Zhang Mou's margin trading account. The cumulative trading amount in this account reached 2,338,310,202.05 yuan, generating an actual loss of 90,233,071.69 yuan.

Combining both accounts, the total transaction value amounted to 2,529,607,504.40 yuan, with combined book losses reaching 92,062,237.71 yuan. Notably, Yang did not generate any illegal gains from accepting these mandates.

The regulatory authority determined that Yang's conduct violated Article 136, Paragraph 2 of the Securities Law, constituting the offense of a securities firm employee privately accepting client mandates to trade securities, as stipulated in Article 210 of the same law. Taking into account the trading circumstances, absence of illegal gains, the nature and severity of the violations, and the level of cooperation during the investigation, the Hunan bureau decided to issue Yang a formal warning alongside a fine of 500,000 yuan. Payment of the penalty is required within 15 days of receiving the decision notice, with funds remitted directly to the national treasury.