Core Viewpoint - The regulatory environment for the investment advisory industry remains stringent, with multiple firms facing administrative measures due to violations of regulations [1][11][13]. Regulatory Actions - Recently, the Hunan Securities Regulatory Bureau imposed administrative measures on two investment advisory firms, including Hunan Jinzheng Investment Consulting Co., Ltd., which was ordered to correct its practices and suspend new client acquisitions for three months [1][14]. - Other firms, such as Fujian Zhongxun Securities Research Co., Ltd. and Hainan Hong Kong-Macao Information Industry Co., Ltd., also faced similar three-month suspensions for new client acquisitions [1][14]. Common Violations - The violations among the affected firms can be categorized into five main types: 1. Insufficient corporate governance and inadequate compliance management [4][6]. 2. Use of false information and improper means to attract clients [5][12]. 3. Non-compliance in providing advisory services to clients [6][12]. 4. Unregistered personnel providing investment advice [7][12]. 5. Deficiencies in workflow management [9][12]. Specific Violations - **Corporate Governance Issues**: Firms like Fujian Zhongxun and Hunan Jinzheng were found to have inadequate internal controls and compliance management [4]. - **Misleading Marketing Practices**: Hunan Jinzheng and other firms were cited for misleading promotional activities and promises of investment returns [5]. - **Non-compliance in Advisory Services**: Hunan Jinzheng provided investment advice without reasonable basis and failed to adequately warn clients of risks [6]. - **Unregistered Advisors**: Instances of unregistered employees providing investment advice were noted as a common issue across multiple firms [7]. - **Workflow Management Deficiencies**: Issues included improper management of client risk assessments and incomplete documentation of advisory services [9]. Increased Regulatory Scrutiny - The number of administrative measures against investment advisory firms has increased, with nearly 30 firms facing actions in the first half of the year [14]. - Regulatory bodies are enhancing oversight, requiring firms to submit monthly reports during the suspension period and ensuring compliance before allowing new client acquisitions [14]. Industry Transformation - The investment advisory industry is undergoing significant changes, moving away from "wild growth" towards a more regulated and compliant operational framework [16]. - Firms are encouraged to adopt a "buy-side" approach, leverage technology for improved service efficiency, and strictly adhere to regulatory requirements for sustainable development [16].