Research Of The Internal Control Of Brokerage Business In Guosen Securities Co., LTD

Through more than 20 years of up and down, China's securities market is more and more flourishing. Generally speaking, the main business of securities companies including brokerage business, investment banking and asset management business, etc. And brokerage business is one of the most important businesses in Guosen Securities. As times go on, the system environment and market environment that brokerage business survival in had also changed greatly, this makes the risks which Guosen Securities faced become more complex and difficult to grasp. Because the breadth of business objects and customer data privacy features, brokerage business has the more and larger risk in practice. Therefore, discuss the internal control of brokerage business of Guosen is very necessary.This article is divided into six parts. First, it introduced the background of this research in this paper, and then introduces the related concept of internal control, including the development, the elements and the objectives etc. of internal control. In addition, specifically introduces the theories of internal control of brokerage business in securities industry, providing theoretical basis for the following research. Then through the analyzing of the existing internal control of brokerage business of Guosen securities, which including environmental analysis and risk analysis, find out the various existing problems in internal control of brokerage business of Guosen securities. Mainly includes lack of internal control evaluation system of Guosen Securities, lack of integrity and ethics and ignoring beforehand prevention, the establishment and operating of business organizations is not standard, departments responsibility is crossed, punishment system is not perfected, lack of customer file management system and the scope of supervision is not comprehensive etc. Finally, based on the existing problems of internal control of brokerage business of Guosen securities, the improvement Suggestions for internal control of brokerage business of Guosen securities were proposed.In the forword countermeasures and proposals, the first step is to optimize the internal control system and internal environment of brokerage business of Guosen securities, which making Guosen securities form a good internal control system and environment. Then establish internal control evaluation system of Guosen Securities, which is reviewing, testing, analysis and evaluation the integrity and validity of the designing and implementation of the existing internal control system of brokerage business of Guosen securities. And finally puts forward some specific countermeasures and proposals, mainly includes strengthening beforehand prevention , standard business organization planning and operating, explicating each department goal and separating the incompatible duties, establishing employees credit files, strengthening customer file management, establishing an auditing system of brokerage business etc. Strengthening beforehand prevention reduce the possibility of risks and losses. Standard business organization planning and operating prevent on extending their business not blind. Explicating each department goal and separating the incompatible duties plays a mutual contain role, making every work process effectively. Establishing employee credit files effectively constraints the behavior of employees in the business activities, making them keeping risk awareness every time. Strengthening customer file management ensures the security of customer information. The establishing of auditing system of brokerage business promotes the effective execution of internal control of brokerage business. Hope through these countermeasures and proposals can consummate the internal control system of brokerage business of Guosen securities, and finally achieve the purpose which plays a help in certain degree for the brokerage business of Guosen securities.