The Draft Amendment to the Securities Company Supervision Regulations is Publicly Solicited for Comments
Source: Rule of Law Daily – Rule of Law Network
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□ Authoritative release
News from our newspaper reporter Zhou Fenmian In order to improve the basic system for the supervision of securities companies, the China Securities Regulatory Commission recently solicited public opinions on the “Regulations on the Supervision and Administration of Securities Companies (Revised Draft)” (hereinafter referred to as the “Draft for Comments”).
The China Securities Regulatory Commission stated that the starting point for the revision of the regulations is to improve the basic regulatory system of securities companies, enhance the ability to prevent and resolve major risks, clarify the regulatory orientation of compliance, prudence, and due diligence, and guide securities companies to strengthen corporate governance and internal management, and return to the origin of the industry. , improve professional capabilities, make up for functional shortcomings, and follow a high-quality development path of standardization, specialization, intensification, and differentiation.
The main content of the “Draft for Comment” includes: implementing the requirements of the new Securities Law, canceling and adjusting some administrative licensing items, implementing the principle of prudent supervision, enhancing the initiative of risk prevention and control, and increasing penalties in comparison with the Securities Law.
Strengthen the requirements for penetration supervision of shareholders and actual controllers of securities companies, strengthen supervision, and standardize corporate governance.
Guide the industry to return to its origin, intensive operation, take the road of high-quality development, cultivate a “compliance, integrity, professionalism, and stability” industry culture, and establish a long-term reasonable incentive and restraint mechanism.
Supplementary business rules, newly added three sections of securities underwriting and sponsorship, market-making transactions, and over-the-counter business, targetedly improving relevant business specifications, and promoting the effective function of serving the real economy.
Strengthen compliance risk control, improve internal and external restraint mechanisms, highlight full coverage of compliance risk control, and strengthen comprehensive risk management;
Supplement key system requirements such as recovery and disposal plan, management of subsidiaries and branches, prevention and control of conflict of interest, management of related party transactions, monitoring of abnormal transactions, honest practice, personnel management, etc., and systematically stipulate the information technology system.
Optimize supervision methods and improve supervision efficiency. Clarify the principles of differentiated supervision, improve the legal liability setting, and increase the cost of violations of laws and regulations.
Editor: Wang Chenhui