According to the "Administrative Measures for Foreign-Invested Securities Companies," overseas securities firms providing securities services to domestic residents must obtain a securities business license issued by the China Securities Regulatory Commission (CSRC) and entrust a domestic custodian to handle fund receipts and payments and other related procedures. However, Baihui BCR has not obtained relevant business qualifications in China but has been conducting business in disguise for a long time. Its fund management model also does not fully comply with the special account management requirements stipulated in the "Regulations on the Management of Securities and Futures Investment Funds of Overseas Institutional Investors in China," highlighting significant compliance loopholes.

    The commission dispute at Baihui BCR has become a major area of investor complaints, closely aligning with the high incidence of commission complaints within the industry. Numerous investors have reported issues such as vague labeling of commission rates and lack of clear notification of adjustments. Some investors believe they should be entitled to the agreed-upon low rates, but in reality, they are charged rates several times higher. The process for adjusting commissions and refunding differences after complaints is cumbersome and slow, and there have even been instances of prevarication and procrastination.

   What deserves more attention is that BCR has been exposed for allegedly providing account opening services in disguise through domestic third-party institutions, which is suspected of violating cross-border financial regulatory provisions.