SECURITIES COMPANY MONITORING AND MANAGEMENT REGULATIONS
Preamble
The Securities Company Monitoring and Management Regulations (hereinafter referred to as the Regulations) are formulated in accordance with the Securities Law of the Peoples Republic of China and related laws and administrative regulations, and specifically regulate the operation, monitoring and management of securities companies and their management activities.
Article 1 【Objects and scope of application】
The objects and scope of application of these Regulations shall cover securities companies established in accordance with the Securities Law of the Peoples Republic of China (hereinafter referred to as securities companies).
Article 2 【Goals】
The goal of the Regulations is to strengthen the supervision and management of securities companies and ensure the healthy development of the capital market.
Article 3 【Administrative Department】
The administrative department of the Regulations is the China Securities Regulatory Commission.
Article 4 【Definition】
The term securities company as used in these Regulations means a company established in accordance with the Securities Law of the Peoples Republic of China and engaged in the business of underwriting, trading and brokerage of securities.
Article 5 【Requirements for the Establishment of Securities Companies】
1. A securities company shall be established in the form of a limited liability company.
2. The registered capital of a securities company shall not be less than RMB one hundred million yuan.
3. A securities company shall have the necessary qualifications and financial strength to ensure the safety of its operations.
4. All shareholders of a securities company shall have sound financial records and good morality.
Article 6 【Application for Establishment of Securities Companies】
1. No unit or individual shall engage in the business of securities companies without permission or before obtaining permission from the securities regulatory authorities.
2. Any unit or individual intending to set up a securities company shall file an application with the securities regulatory authorities in accordance with the procedures prescribed by laws and administrative regulations.
3. After examining and verifying the qualifications of a securities company in accordance with the application, the securities regulatory authorities shall issue a permit for the establishment of a securities company to the applicant.
Article 7 【Organizational Structure】
1. The organizational structure of a securities company shall include a board of directors, a board of supervisors, an executive committee and other functional departments as necessary.
2. The board of directors of a securities company shall be composed of statutory directors appointed by the shareholders, who shall be responsible for the companys business operations, decision-making and supervision.
3. The board of supervisors of a securities company shall be composed of statutory supervisors appointed by the shareholders and shall have the right to supervise the companys business operations and decision-making.
4. The executive committee of a securities company shall be composed of statutory executives appointed by the board of directors, who shall be responsible for the day-to-day management of the company.
Article 8 【Business Registration】
A securities company, after obtaining the permitted establishment of a securities company, shall register its business scope with the securities regulatory authority in accordance with the procedures prescribed by laws and administrative regulations.
Article 9 【Regulatory Requirements for the Business of Securities Companies】
1. A securities company shall not carry out any business outside the scope of the permitted business scope.
2. A securities company shall set up a risk prevention and control system, formulate relevant implementation regulations, and conduct comprehensive and comprehensive customer risk management.
3. A securities company shall abide by the relevant laws, administrative regulations, business rules, etc. related to the capital market.
4. A securities company shall strengthen the internal risk control and implement its internal control system in accordance with the relevant laws and regulations.
Article 10 【Regulatory Requirements for the Management of Securities Companies】
1. A securities company shall strengthen the management of its senior management personnel, and shall not employ any personnel who fail to meet the requirements prescribed by the laws and administrative regulations.
2. A securities company shall strengthen the management of its personnel and regularly conduct training on laws, regulations, business operations and risks related to the capital market.
3. A securities company shall establish a sound business management system and internally disclose information in accordance with the relevant laws and regulations.
Article 11 【Financial Requirements】
1. A securities company shall maintain a sound capital structure, control its leverage ratio and manage its credit risk.
2. A securities company shall rigorously control its risk assets and shall not engage in business or activities that lead to the buildup of risk assets.
3. A securities company shall use its funds appropriately and implement a reasonable compensation system.
4. A securities company shall properly manage its assets, regularly inspect its asset quality, and strengthen asset liability management.
Article 12 【Regulation and Supervision】
1. The China Securities Regulatory Commission shall supervise and manage securities companies in accordance with the Securities Law of the Peoples Republic of China and other laws, administrative regulations and relevant rules.
2. Securities companies shall provide their financial information and other information required by the securities regulatory authorities on a regular basis in accordance with the relevant regulations.
3. The securities regulatory authorities may investigate a securities companys activities at any time and may take the necessary measures in accordance with the law.
Article 13 【Penalties】
Where any unit or individual violates these Regulations, the securities regulatory authorities shall impose a punishment in accordance with the relevant laws and regulations.
Article 14【Supplementary Provisions】
The interpretations of these Regulations shall be made by the China Securities Regulatory Commission.
Article 15 【Effective Date】
These Regulations shall enter into force on the date of issuance.
