The China Futures Association ("CFA") has recently issued the Warning Criticism Procedures and the Rules for Management of Qualifications of Futures Practitioners for implementation.
The Warning Criticism Procedures provide that in case a member of the CFA, or its practitioner contravenes the CFA's self-discipline rules, or transgresses business ethics, undermines the industry's reputation or damages the common interests, warning criticism may be given in accordance with these rules, if there is no need to impose disciplinary punishment under any of the given circumstances, e.g. "where its behavior does not cause a seriously negative impact on the securities and futures markets". In addition, the Warning Criticism Procedures clearly state that under any of several circumstances, e.g. "where the member's or practitioner's fairly minor behavior does not cause a negative impact", the CFA may exempt the member or practitioner at issue from the warning criticism, as the case may be. Moreover, the Warning Criticism Procedures note that warning criticism may be given in two forms, that are issuing a written warning and holding a regulatory talk with the violator. In case a member or a practitioner has been subject to warning criticism for a total of three times or more in a single year, the CFA will impose a disciplinary punishment in the form of admonition on this member or practitioner, pursuant to the Disciplinary Punishment Procedures of the China Futures Association.