The China Futures Association ("CFA") has recently formulated and issued the Code of Good Faith for the Futures Sector (the "Code"), immediately effective from the date of issuance.
The 23 articles of the Code are organized into five chapters and mainly aimed at clarifying requirements for the good faith and self-discipline of futures operators, providing requirements for the good faith and self-discipline of practitioners in the futures sector, and specifying the agency in charge of organizing the implementation of the Code and methods on how to deal with acts in violation of the Code. Further, the Code sets out requirements on futures operators, from different angles, including upholding guidelines and policies of the Communist Party of China ("CPC") and the State Council, putting in place regulatory requirements of the China Securities Regulatory Commission ("CSRC"), abiding by laws and regulations, and being courageous to undertake social responsibilities. Futures operators are required to adhere to the principle of "transparency, fairness and justice" while competing in the market, and are prohibited from undertaking business by illicit means, including commercial briberies, false advertising, commitment to returns, and malicious competition, such as the offering of unfairly low service fees.