The Case Study Of The Brokerage’s Internal Control System In MZ Securities Co

In recent years, the Chinese Security Markets develop rapidly. With the development of the economy, there are many reasons resulting in the dilution of most company’s securities brokerage business profits, such as the fierce competition in the securities brokerage market, the downturn performance of the stock market and the decline of transaction volume. How to get a foothold and development in the competitive market of securities brokerage business is a common concern for all securities firms. During the history of the development of China’s securities industry, the China Southern Securities Company Limited and Huaxia securities Company Limited have had themselves subject to the punishment by the government because of the violation of laws in their brokerage business, which makes the study of the internal control of securities brokerage business has become an important issue.Although there have been data relevant to the internal control of securities company, but the directly theoretical study about brokerage business is not much, and the recommendations lack pertinence. In practice, how to conduct brokerage business effectively has a strong practical value. So, this paper chooses MZ securities brokerage business for study, focuses on the current status of its internal control system, analyzes its weakness, and gives recommendations accordingly. What need to state clearly is that although we choose this particular company for study, its structure is universal, and corresponding policy recommendations are also available to other securities companies of the same corporate governance structure.Securities firms should censor themselves regularly, and optimize their internal control systems of the brokerage business mainly on two aspects, the first whether the system is perfect, the second whether it gets implemented effectively. So securities firms should find out the existent problems with their internal control system of the brokerage business and correct them promptly, so as to effectively manage and control risk. For any securities company, it will not be solved once and for all to optimize the internal control system of the brokerage business, and need to adjust itself with the fast changes in the market constantly to ensure the normal operation of the securities brokerage business.