The China Securities Regulatory Commission ("CSRC") has recently issued the Measures for Supervision and Administration of Futures Companies (the "Measures"), immediately effective from the date of issuance.
Revisions contained in the Measures touch upon five aspects. First, major shareholders of futures companies, particularly their controlling shareholders and the largest shareholders, will be required to have higher qualifications. Clear requirements for the going-concern period and the sustainable profitability are set out, and extra provisions concerning capital contribution, relativity of major business and operating capacity are added. Second, administration of shareholders of futures companies are tightened and their obligations are intensified. Specifically, regulatory requirements for related-party transactions between shareholders, actual controllers, among other related parties and futures companies are added; rules with respect to the reporting of material events by shareholders and actual controllers are improved. Third, management of futures companies' domestic branches and subsidiaries and overseas business establishments are optimized. Fourth, requirements concerning the management of clients' accounting-opening and trading behaviors by futures companies are improved. And fifth, provisions concerning information system management of futures companies are improved, and an institutional requirement for compliance operation of information systems is made clear.