19 public funds disclosed penalties from last year: compliance and internal controls become the "hardest hit areas," with many, including Hu'an and Harvest, suspended from product registration

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19 public funds disclosed last year’s penalty notices: compliance and internal controls have become a “major trouble spot,” and multiple products have had registrations suspended

With the concentrated disclosure of public fund companies’ 2025 annual reports, details emerged about regulatory penalties imposed on fund management companies over the past year.

According to an incomplete count by a reporter from The Paper, for the full year of 2025, at least 19 public fund companies received administrative regulatory measures issued by regulatory authorities, such as warning letters and orders to rectify, and some companies also faced penalties including suspending product registrations or business applications. Judging by the reasons for the penalties, inadequate internal control management, compliance and internal-control deficiencies, violations in investment and operations, and issues related to corporate governance and personnel management have become the集中 focus areas flagged by regulators.

Multiple top-tier institutions are on the list

In the information already disclosed, multiple leading public fund companies are included.

On November 5, 2025, E Fund was issued a warning letter by the Guangdong Securities Regulatory Bureau due to investment operations, compliance internal controls, and other issues (sales management). The company completed rectification in a timely manner through measures such as improving its systems, optimizing processes, and enhancing system functions, and the remediation results have already passed acceptance by the regulatory authorities.

According to the annual report of products under Huaxia Fund, on November 4, 2025, Huaxia Fund was issued a warning letter by the Beijing Securities Regulatory Bureau due to personnel management and other issues (including internal control and sales management). On the same year’s December 26, a senior management personnel of the company was also issued a warning letter for the above issues. Huaxia Fund said the company has carried out rectification from aspects including business improvement, system optimization, and training and communications, and that it has now completed all remediation work and submitted a remediation report to the regulators.

Fochong Fund, meanwhile, on November 11, 2025, was subject to an administrative regulatory measure of an order to rectify issued by the Shanghai Securities Regulatory Bureau, covering multiple dimensions including corporate governance, compliance internal controls, investment operations, personnel management, sales management, and financial management. On the same day, two senior management personnel were also separately issued warning letters due to issues related to investment operations and sales management. As of the end of the reporting period, Fochong Fund had adopted a series of rectification measures, including improving relevant system rules, optimizing related system processes, and strengthening compliance internal-control mechanisms. The rectification results have passed acceptance by the Shanghai Securities Regulatory Bureau, and the related measures have been lifted.

On October 31, 2025, Boshi Fund was ordered to rectify by the Shenzhen Securities Regulatory Bureau due to compliance internal-control issues, and some businesses were also suspended. Previously, on October 28, 2025, the company’s two senior management personnel were likewise issued warning letters due to compliance internal-control issues. As of the end of the reporting period, Boshi Fund had comprehensively completed rectification by improving systems, optimizing processes, strengthening supervision, and other measures, and had passed the rectification acceptance.

On October 27, 2025, China Merchants Fund was ordered to rectify by the Shenzhen Securities Regulatory Bureau due to compliance internal-control issues; on the same day, one of the company’s senior management personnel was also subject to regulatory interviews due to the same issues. China Merchants Fund said it had completed rectification through measures such as improving systems and optimizing processes, and passed acceptance by the regulators.

On November 11, 2025, E Fund also was ordered to rectify by the Shanghai Securities Regulatory Bureau due to compliance internal controls, investment operations, and other issues (fund sales, etc.). The company completed rectification of the related issues through measures such as improving its systems and optimizing management, and has passed the regulatory inspection and acceptance.

Huian Fund, etc. had their product registration applications suspended for 3 months

Overall, among regulatory penalties in 2025, “suspending the acceptance of public fund product registrations” or “suspending some business” became a relatively stringent constraint measure applied to non-compliant institutions.

According to the annual report of products under Harvest Fund, on November 3, 2025, Harvest Fund was ordered to rectify by the Beijing Securities Regulatory Bureau and had its acceptance of fixed-income public fund product registrations suspended for 3 months due to issues including compliance internal controls, investment operations, and corporate governance. As of the end of the reporting period, Harvest Fund had completed remediation from aspects including strengthening system building, improving process mechanisms, optimizing system functions, and strengthening personnel training, and submitted a report on the completion of rectification to the Beijing Securities Regulatory Bureau.

Huian Fund, meanwhile, was ordered to rectify by the Shanghai Securities Regulatory Bureau on November 28, 2025, and had its acceptance of applications for fixed-income public fund product registrations suspended for 3 months. The issues involved included investment operations, compliance internal controls, personnel management, corporate governance, fund sales, and financial management. On the same day, four senior management personnel of Huian Fund were also issued warning letters as a result. As of the end of the reporting period, Huian Fund had completed rectification and passed regulatory inspection and acceptance by adopting various methods such as improving institutional and process design, optimizing management mechanisms, and strengthening post-event checks. It has now resumed the acceptance of product registrations for the company’s fixed-income public funds.

On October 31, 2025, Great Wall Fund was ordered to rectify by the Shenzhen Securities Regulatory Bureau due to compliance internal-control issues, and its acceptance of product registration applications for relevant categories was suspended for 3 months. Previously, on October 27, 2025, two senior management personnel of the company were also subject to regulatory interviews and warning letter measures for the same compliance issues. At present, the rectification work has been completed.

On October 31, 2025, Chuangjin Hexin Fund was ordered to rectify by the Shenzhen Securities Regulatory Bureau and had the filing of新增 private asset management products suspended for 3 months. The reasons involve similar circumstances in investment operations and sales management, such as inadequate internal control systems or failure to implement them properly. Some senior management personnel were also issued warning letters. As of the end of the reporting period, the company has completed rectification in accordance with regulatory requirements through measures such as improving systems and optimizing processes.

West Gain, etc. were flagged multiple times

Some fund companies received regulatory penalties or warning letters multiple times during 2025.

During the whole year, West Gain Fund累计 received three warning letters: on March 26, 2025, it received a warning letter issued by the Shanghai Securities Regulatory Bureau for issues including compliance internal controls, personnel management, and integrity in professional conduct; on the same day, warning letters were also issued to company executives for issues such as information technology; and on December 23, 2025, it received another warning letter again for issues related to information disclosure. The company said all rectifications have been completed as required.

Nanhua Fund, meanwhile, faced multiple penalties. On November 21, 2025, Nanhua Fund was ordered to rectify by the Zhejiang Securities Regulatory Bureau due to corporate governance and compliance internal-control issues, and relevant executives were subject to regulatory interviews or warning letters. On December 9, 2025, a practitioner was subject to a regulatory interview due to compliance internal controls, investment operations, and fund sales issues; on the same day, a senior executive was ordered to rectify due to fund sales issues. On December 29, 2025, the company was again ordered to rectify and had acceptance of some business suspended for 3 months due to issues including compliance internal controls, investment operations, and fund sales. The company said it has made comprehensive rectifications of the related issues.

Southern Fund was simultaneously subject to regulatory penalties from the Shenzhen Securities Regulatory Bureau and the Shenzhen Branch of the State Administration of Foreign Exchange.

On October 17, 2025, and November 18, 2025 respectively, Southern Fund was successively subject to administrative regulatory measures and administrative penalties such as orders to rectify, warnings, and fines by the Shenzhen Securities Regulatory Bureau and the Shenzhen Branch of the State Administration of Foreign Exchange, due to issues including investment operations, personnel management, sales management, and foreign exchange registrations. The company’s senior management personnel were also issued warning letters due to personnel management and sales management issues. As of the end of the reporting period, Southern Fund has completed all rectifications and passed acceptance by the Shenzhen Securities Regulatory Bureau and the foreign exchange management authorities.

Penalties were also imposed for failing to withhold and remit personal income tax as required

In addition to the companies above, multiple other institutions including Guotai Fund, CCB International Fund, Haitong Fund, Yimin Fund, Everbright Pramerica Fund, and Founder Furong Fund also received regulatory penalties to different degrees in 2025.

On May 9, 2025, Guotai Fund was ordered to rectify by the Shanghai Securities Regulatory Bureau due to investment operations issues. It has now completed rectification and passed acceptance through remediation measures including improving control mechanisms and strengthening management.

On June 10, 2025, CCB International Fund received a warning letter from the Shanghai Securities Regulatory Bureau due to compliance internal controls and investment operations issues. After the on-site inspection by the regulator concluded, the company immediately established a rectification task force and formulated rectification measures including system amendments, personnel training and communications, and strengthening internal checks. For the issues involved, the company has completed rectification in a timely manner as required and submitted the rectification report to the Shanghai regulator.

According to the 2025 annual report of Guotai Haitong, in August 2025, Haitong Fund received administrative regulatory measures in the form of a warning letter from the Shanghai Securities Regulatory Bureau due to issues such as non-compliant investment management in private asset management business, insufficient discretionary management in some private asset management plans, and inadequate implementation of investment authority management system in private asset management business. In response to the above issues, Haitong Fund has promptly carried out rectification, including conducting internal serious accountability, strengthening compliance training, emphasizing discretionary management, and improving internal control measures for private asset management business.

According to the 2025 annual report of Founder Furong Fund’s products, on April 14, 2025, Founder Furong Fund was subject to administrative penalties by the Second Tax Investigation Bureau of the Beijing Municipal Taxation Bureau of the State Taxation Administration due to failing to withhold and remit personal income tax as required due to calculation errors; it was required to pay back taxes and pay a fine. As of the end of the reporting period, the company has voluntarily repaid the taxes, paid the fine, and completed the rectification work.

Yimin Fund, on the other hand, received a warning letter from the Beijing Securities Regulatory Bureau on June 5, 2025 due to compliance internal-control issues. The company has sorted, revised, and improved the relevant institutional processes, completed rectification, and submitted a summary report to the regulators.

In addition, on November 19, 2025, Everbright Pramerica Fund was subject to administrative regulatory measures by the Shanghai Securities Regulatory Bureau due to a relatively rare compliance flaw: “the content displayed on the official website does not meet the requirements.” Based on implementing rectification immediately and thoroughly, the company has comprehensively reviewed and optimized the relevant internal processes and has put the rectification work in place.

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责任编辑：石秀珍 SF183