Background
The regulation is applicable to Chinese residents and cross-border securities businesses. To run the securities business, it needs approval from the China Securities Regulatory Commission. The amendment of the regulatory policy is a warning to illegal cross-border securities businesses. Implementing these measures should increase investor protection and ensure more secure, reliable, and transparent trading practices.
Content
- Clarify the responsibility of the brokerage business. It is emphasized that the securities companies are violating to license business without the approval of the Council.
- Strengthen customer behaviour management. Supervise and urge securities companies to strictly perform customer management duties, such as customer identification, customer suitability management, account use of the real-name system, and other work.
- Optimize business management processes. Supervise and urge securities companies to strictly implement transaction management responsibilities, strengthen the control of the whole process before, during and after the event, and strengthen the management of rental trading units.
- Protect the legitimate rights and interests of customers. Securities companies should separate trading commissions from stamp duty and other taxes and fees and inform investors. If an investor submits an account for resale, the securities company shall complete the application within two trading days after the investor submits the application and completes the settlement of the transaction in the account. A securities company shall not restrict investors from transferring or closing their accounts in violation of regulations.
- Strengthen internal risk control and compliance. To prevent brokerage business risks and strengthen the internal control responsibility of securities companies, standardized requirements for securities companies from the aspects of improving branch management, personnel management, business control and information systems.
- Strict administrative supervision and accountability. If a securities company violates the provisions of these Measures, it shall take regulatory measures such as issuing warning letters, ordering corrections, and ordering an increase in the number of internal compliance inspections in accordance with the law. The second is to strengthen the supervision of illegal cross-border brokerage businesses. The Measures cite the relevant provisions of the Securities Law and the Regulations on the Supervision and Administration of Securities Companies to strengthen the daily supervision of illegal cross-border brokerage business and steadily advance the rectification and standardization of relevant violations of laws and regulations.
resource: http://www.csrc.gov.cn/csrc/c101953/c6987676/6987676/files/%E9%99%84%E4%BB%B62%EF%BC%9A%E3%80%8A%E8%AF%81%E5%88%B8%E7%BB%8F%E7%BA%AA%E4%B8%9A%E5%8A%A1%E7%AE%A1%E7%90%86%E5%8A%9E%E6%B3%95%E3%80%8B%E7%AB%8B%E6%B3%95%E8%AF%B4%E6%98%8E.pdf
