According to the relevant criminal judgment of Qingdao Intermediate People's Court, combined with the investigation of the Association, all members of the Self-discipline Supervision Committee voted unanimously and reported to the board of directors for approval, and decided to take disciplinary action against Xu Xiang, Xu Jun, Zheng, Shanghai Zexi Investment Management Co., Ltd. and Shanghai Zexi Asset Management Center (general partnership), cancel the registration of private fund managers, cancel their membership, blacklist Xu Xiang and other related institutions and publicly condemn them, and cancel the identification method of Xu Xiang and Zheng. After joining the blacklist, relevant institutions may not re-register and relevant personnel may not work in the fund industry.
According to the association, Xu Xiang, as a private fund practitioner, changed from a "private star" to a "prisoner", which damaged the reputation of the industry, disrupted the order of the industry and learned a profound lesson. The whole industry should reflect deeply and take a warning. First, strictly abide by laws, regulations and self-discipline rules. Xu Xiang and others have broken through the bottom line of laws, regulations and self-discipline rules in registration, internal management, personnel qualification, information submission and fund operation. However, their awareness of compliance is indifferent and their risk control is weak, which leads them to commit crimes. The second is to adhere to the principle that the interests of investors are paramount. Trust is the foundation of the fund industry.
Xu Xiang and others use the fund property to seek benefits for themselves and others, which not only tarnishes their personal reputation, but also endangers investors' trust in the fund industry. Third, it is strictly forbidden to use fund property to engage in illegal and criminal activities. Fund investment activities shall not go beyond or even trample on the law to seek benefits. The fund industry must always be in awe of the law, and always bear in mind that acts that challenge the law will inevitably be sanctioned, and ill-gotten gains will eventually face recovery. Fourth, resolutely resist illegal activities. Fund managers should not only be honest, but also fight against illegal phenomena in the industry. Fund custodians, fund sales organizations, accounting firms, law firms and other fund service institutions should also perform their duties, play the role of industry gatekeepers, and timely discover and stop illegal acts.
The association requires that the whole industry should draw inferences from other countries, comprehensively enhance the awareness of law-abiding and compliance, be loyal to the trustee's responsibility, firmly hold the bottom line of practice, resolutely resist and expose the bad atmosphere and violations of law and discipline in the industry, and create an industry order of "those who comply win and those who violate the rules are eliminated", so as to make the fund industry a reliable investment channel for investors and truly promote the healthy development of the fund industry.