Core Viewpoint - The regulatory scrutiny on the securities investment consulting industry has intensified significantly at the beginning of 2026, with misleading promotional practices promising high returns being a primary focus of the crackdown [1][7]. Regulatory Actions - Since the start of the year, three licensed investment consulting firms, including Huiyan Zhitu Technology Co., Shenzhen Luojia Investment Consulting Co., and Beijing Tianxiang Wealth Management Co., have received penalties, totaling 12 regulatory fines in the industry [1][7]. - The Shanxi Securities Regulatory Bureau issued five regulatory documents to Huiyan Zhitu on January 16, ordering a three-month suspension of new client acquisitions, marking a typical case in the industry [1][7]. Violations Identified - Huiyan Zhitu has been found to have multiple violations, including misleading marketing content, implicit profit promises, and providing investment advice without adequate basis or risk disclosure [9][11]. - Other firms, such as Beijing Tianxiang Wealth and Shenzhen Luojia Investment, have also faced penalties for similar violations, including improper marketing and inadequate internal control mechanisms [4][11]. Industry Trends - The increase in penalties reflects a high-pressure regulatory environment for the investment consulting industry, with a notable rise in the use of "qualification penalties" [5][12]. - In 2025, over a hundred fines were issued in the investment consulting sector, with misleading marketing practices being the most common violation [12]. Compliance Challenges - The shift of investment consulting services to online platforms has introduced new compliance risks, as firms pursue short-term performance through social media and live streaming, often at the expense of regulatory adherence [5][12]. - Experts suggest that firms need to transition from a sales-driven model to one focused on fiduciary responsibility, emphasizing asset allocation and financial planning [13]. Recommendations for Improvement - Industry professionals advocate for a complete overhaul of business models, moving away from commission-based sales to a membership or advisory fee structure linked to client asset health [13]. - There is a call for improved internal controls and compliance mechanisms to address the fragmented nature of sales through new media channels [13].

Regulatory Actions - The regulatory authorities have issued a total of 76 fines against 49 investment advisory institutions as of December 13, surpassing the total number of fines from the previous year [1] - Over 60% of the fined institutions were ordered to rectify their practices, with more than 10 institutions receiving warnings and some being suspended from acquiring new clients [1] Violations and Penalties - Common violations among third-party advisory institutions include providing false information, improper management of personnel qualifications, and misleading advertising [2] - For instance, Longwei Securities was penalized for non-compliance in managing live broadcast personnel and was required to submit a written rectification report [2] - Longwei Securities has faced multiple penalties this year, including a fine of 30,000 yuan for false statements [2] Frequency of Penalties - Several institutions have received multiple penalties this year, with Aiying Securities being fined five times, while others like Tianxiang Wealth and Zhongfang Xinfeng received four fines each [3] Client Acquisition Restrictions - Some advisory institutions have been suspended from acquiring new clients for varying periods, with firms like Huiyan Zhito and Kede Advisory facing six-month suspensions [4] - Notably, Zhongfang Xinfeng was heavily penalized with a fine of 3 million yuan and the revocation of its investment consulting business license due to severe violations [4] Industry Outlook - The investment advisory industry is expected to undergo further consolidation as regulatory scrutiny intensifies, with only 78 licensed advisory institutions reported as of September this year [6] - Industry insiders suggest that the focus on compliance and professional research capabilities is essential for the survival and growth of advisory firms [5]