Just under four months after its official name change, FIN STREET SEC has become a focal point of market attention due to employee compliance risks. According to disclosures from the Inner Mongolia and Guangdong local regulatory bureaus, FIN STREET SEC, its subsidiary branches, and seven practicing employees have been collectively subjected to regulatory actions for issues including internal control failures, unauthorized promotion of non-distributed products, providing improper benefits to clients, and guaranteeing principal and returns.

This regulatory storm not only marks the first time the company has been "named" by authorities since its rebranding in September 2025, but it also casts a shadow over its impressive financial performance. Data shows that in the first half of 2025, FIN STREET SEC's net profit attributable to shareholders surged by 346.86% year-on-year, with its core engine—the brokerage and wealth management business—recording a revenue increase of over 36%. However, it is precisely this business segment, which supported the earnings turnaround, that has now exposed serious misconduct by multiple employees.

On December 31, 2025, the Inner Mongolia and Guangdong regulatory bureaus simultaneously disclosed their regulatory actions against FIN STREET SEC. In the Inner Mongolia region, six employees—Ma Tian, Lu Wenlong, Wang Xin, Wang Lihong, Hao Lizhen, and Kang Cheng—located in Baotou, Yakeshi, and Hohhot, were issued warning letters. In Guangdong, Lu Mingbin was subjected to a regulatory interview. This widespread, cross-regional personnel misconduct directly reflects the company's insufficient effectiveness in controlling its branch offices and practitioners.

In response, the Inner Mongolia regulatory bureau ordered FIN STREET SEC to increase the frequency of internal compliance checks and submit compliance reports. The company must complete rectifications within three months of receiving the supervisory measures. From January 2026 to December 2026, it is required to conduct internal compliance checks every three months, continuously improve its compliance management system and internal control measures based on the findings, strengthen personnel management, prevent and control risks, and submit a compliance check report within ten working days after each inspection.

Additionally, the Guangdong regulatory bureau issued a warning letter to FIN STREET SEC's Chaozhou Xitai Avenue Securities Branch. The Guangdong bureau pointed out that the branch should attach high importance to the matter, take effective measures for substantive rectification, strengthen supervision of employee conduct, and enhance its compliance management level.

Further details of the violations by the seven employees are as follows. First is the phenomenon of "unauthorized sales." The regulatory investigation revealed that Lu Wenlong, Wang Xin, and Wang Lihong, while working at FIN STREET SEC's Yakeshi Qingsong Road Securities Branch, privately promoted and sold products from the platform of Beijing Hengtai Puhui Information Service Co., Ltd., which were not distributed by the company. Lu Mingbin, during his tenure at FIN STREET SEC's Chaozhou Xitai Avenue Securities Branch, engaged in selling non-company distributed products to investors from which he obtained improper benefits, and also guaranteed principal and returns. Such practices, which bypass the company's risk control system to conduct business privately, violate the suitability management principles of securities firms.

Second is improper fund operations. Kang Cheng, while working at FIN STREET SEC's Hohhot Daxue West Street Securities Branch, privately organized investors to sign agreements for jointly purchasing the Lehe Zhonghe Film and Television Tiered Equity Private Investment Fund and pooled funds into his personal account to purchase the fund.

Furthermore, Ma Tian, during her employment at FIN STREET SEC's Baotou Gangtie Street Securities Branch, provided improper benefits to clients during the sales process of the aforementioned fund. Hao Lizhen, while working at FIN STREET SEC's Hohhot Xincheng North Street Securities Branch, did not use the company's uniformly produced promotional materials when introducing and selling the aforementioned fund to clients, and the materials used contained statements that could prevent investors from accurately understanding the risks of the private fund.

FIN STREET SEC's development history recently turned a new page. The company was established in 1992 under the original name Hengtai Securities and listed in Hong Kong in 2015. In 2023, the China Securities Regulatory Commission approved Beijing Financial Street Investment (Group) Co., Ltd. as its actual controller. On September 9, 2025, the company formally completed its industrial and commercial registration change and was renamed "Financial Street Securities Co., Ltd."

Data indicates that after coming under the control of Financial Street Group, FIN STREET SEC's performance improved, achieving a turnaround to profitability in 2023 and recording growth in both revenue and net profit attributable to shareholders in 2024. In the first half of 2025, FIN STREET SEC achieved total operating revenue of 1.666 billion yuan, a year-on-year increase of 42.45%; its net profit attributable to shareholders was 241 million yuan, surging 346.86% year-on-year.

As the main engine of FIN STREET SEC's performance growth, the company's brokerage and wealth management business achieved operating revenue of 951 million yuan in the first half of 2025, a year-on-year increase of 36.19%. This achievement was due partly to increased trading activity in the securities market during the period, and also to the expansion of the company's client base and enhanced asset custody capabilities. Data shows that during the reporting period, the company added 143,900 new accounts, bringing the total number of clients to 4.1189 million, an increase of 3.21% from the end of 2024; total client assets under custody reached 189.284 billion yuan, a year-on-year increase of 5.55%; stock and fund trading volume was 1,375.839 billion yuan, an increase of 65.04% compared to the same period in 2024, demonstrating strong growth momentum in the wealth management business.

However, the exposure of violations by these seven employees within this very business unit highlights that the company's compliance framework still requires strengthening. As stated by the Inner Mongolia regulatory bureau, the aforementioned situation reflects that the company's internal controls and compliance management are inadequate, its effectiveness in controlling practitioner conduct is insufficient, and it has failed to effectively prevent and control risks.