Decision on Revising the Provisions on the Classification-based Regulation of Securities Companies
Decision on Revising the Provisions on the Classification-based Regulation of Securities Companies
Decision on Revising the Provisions on the Classification-based Regulation of Securities Companies
Announcement of the China Securities Regulatory Commission [2017] No.11
July 6, 2017
The Decision on Revising the Provisions on the Classification-based Regulation of Securities Companies is hereby announced for implementation as of the date of promulgation.
Decision on Revising the Provisions on the Classification-based Regulation of Securities Companies
It is hereby decided to revise the Provisions on the Classification-based Regulation of Securities Companies (Announcement of the China Securities Regulatory Commission [2010] No.17) as follows:
I. The "dynamic risk control" in Paragraph 1 of Article 5 shall be revised as "comprehensive risk management".
Item 1 of Paragraph 1 of Article 5 shall be revised as: "Capital adequacy. It mainly reflects net capital and risk control indicators focusing on net capital and liquidity to show the capital strength and its fluidity."
Item 3 of Paragraph 1 of Article 5 shall be revised as: "Comprehensive risk management. It mainly reflects the identification, measurement, monitoring, early warning, reporting, prevention and handling of different risks of securities companies to show their management capability of liquidity risks, market risks, credit risks and reputation risks."
Item 5 of Paragraph 1 of Article 5 shall be revised as: "Protection of clients' rights and interests. It mainly reflects safety of clients' funds, services for clients and client management of securities companies to show the operation risk management capability."
II. The "underwriting and sponsoring business" and "cost management capability" in Article 6 shall be respectively revised as "investment banking business" and "comprehensive strength".
III. The "disciplinary punishment imposed on by self-regulatory organization for securities" in Article 7 shall be revised as "disciplinary punishment imposed on and self-regulatory measures taken by self-regulatory organization for securities and futures".
IV. One item shall be added to be Item 1 of Paragraph 1 of Article 9: "In the case of being issued a warning letter, or order to give a public explanation, to participate in training or to make regular reports, 0.5 points shall be deducted each time;"
Original Item 1 of Paragraph 1 of Article 9 shall be amended as Item 2: "In the case of being issued a warning letter and ordered to give a public explanation within the jurisdiction, or ordered to make corrections or to increase internal compliance checks, 1 point shall be deducted each time;"
Item 2 of Paragraph 1 of Article 9 shall be revised as Item 3: "In the case of relevant persons being ordered to accept sanctions, or directors, supervisors or senior managers receiving regulatory talks because of their being liable for the company's activities that violate laws and regulations, 1.5 points shall be deducted each time;"
Item 10 of Paragraph 1 of Article 9 shall be revised as Item 11: "In the case of being imposed such administrative sanction as business suspension, or directors, supervisors or senior managers being forbidden to access the market during their life because of their being liable for the company's activities that violate laws and regulations, 8 points shall be deducted each time;"
The "if regulatory measures are imposed on such subsidiaries" in Paragraph 2 of Article 9 shall be revised as "if the aforesaid measures are imposed on such subsidiaries".
V.
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Announcement of the China Securities Regulatory Commission [2017] No.11
July 6, 2017
The Decision on Revising the Provisions on the Classification-based Regulation of Securities Companies is hereby announced for implementation as of the date of promulgation.
Decision on Revising the Provisions on the Classification-based Regulation of Securities Companies
It is hereby decided to revise the Provisions on the Classification-based Regulation of Securities Companies (Announcement of the China Securities Regulatory Commission [2010] No.17) as follows:
I. The "dynamic risk control" in Paragraph 1 of Article 5 shall be revised as "comprehensive risk management".
Item 1 of Paragraph 1 of Article 5 shall be revised as: "Capital adequacy. It mainly reflects net capital and risk control indicators focusing on net capital and liquidity to show the capital strength and its fluidity."
Item 3 of Paragraph 1 of Article 5 shall be revised as: "Comprehensive risk management. It mainly reflects the identification, measurement, monitoring, early warning, reporting, prevention and handling of different risks of securities companies to show their management capability of liquidity risks, market risks, credit risks and reputation risks."
Item 5 of Paragraph 1 of Article 5 shall be revised as: "Protection of clients' rights and interests. It mainly reflects safety of clients' funds, services for clients and client management of securities companies to show the operation risk management capability."
II. The "underwriting and sponsoring business" and "cost management capability" in Article 6 shall be respectively revised as "investment banking business" and "comprehensive strength".
III. The "disciplinary punishment imposed on by self-regulatory organization for securities" in Article 7 shall be revised as "disciplinary punishment imposed on and self-regulatory measures taken by self-regulatory organization for securities and futures".
IV. One item shall be added to be Item 1 of Paragraph 1 of Article 9: "In the case of being issued a warning letter, or order to give a public explanation, to participate in training or to make regular reports, 0.5 points shall be deducted each time;"
Original Item 1 of Paragraph 1 of Article 9 shall be amended as Item 2: "In the case of being issued a warning letter and ordered to give a public explanation within the jurisdiction, or ordered to make corrections or to increase internal compliance checks, 1 point shall be deducted each time;"
Item 2 of Paragraph 1 of Article 9 shall be revised as Item 3: "In the case of relevant persons being ordered to accept sanctions, or directors, supervisors or senior managers receiving regulatory talks because of their being liable for the company's activities that violate laws and regulations, 1.5 points shall be deducted each time;"
Item 10 of Paragraph 1 of Article 9 shall be revised as Item 11: "In the case of being imposed such administrative sanction as business suspension, or directors, supervisors or senior managers being forbidden to access the market during their life because of their being liable for the company's activities that violate laws and regulations, 8 points shall be deducted each time;"
The "if regulatory measures are imposed on such subsidiaries" in Paragraph 2 of Article 9 shall be revised as "if the aforesaid measures are imposed on such subsidiaries".
V.
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