|
Welcome Guest
|
|
You are using Guest Account
|
|
||||||||||||||||||||||||||||||||||
|
TABLE OF CONTENTS CHAPTER I GENERAL PROVISIONS CHAPTER II ESTABLISHMENT, ALTERATION AND TERMINATION CHAPTER III BASIC RULES OF FUTURES BROKERAGE BUSINESS CHAPTER IV ORDINARY REGULATION CHAPTER V PROCEDURES FOR SPECIAL TREATMENT OF THE CRISIS OF SECURITY DEPOSIT FUND CHAPTER VI RULES OF PUNISHMENT CHAPTER VII SUPPLEMENTARY PROVISIONS CHAPTER I GENERAL PROVISIONS Article 1. In order to strengthen the supervision and administration of futures brokerage companies, to protect the legal rights and interests of futures investors, and to promote the healthy development of futures market, the present Measures have been formulated in accordance with the Interim Regulations on the Administration of Futures Trading. Article 2. The futures brokerage companies registered within the People's Republic of China shall be governed by the present Measures. Article 3. China Securities Regulatory Commission (hereinafter referred to CSRC) shall supervise and administer the futures brokerage companies pursuant to law. The securities regulatory offices, agencies, accredited representative's offices sent to the localities by CSRC (hereinafter referred to the agencies of CSRC) shall supervise and administer the futures brokerage companies and the branches thereof pursuant to the present Measures and the authorization of CSRC. Article 4. Futures brokerage companies shall join in the China Futures Association. China Futures Association shall exercise self-regulation over the futures brokerage companies pursuant to the present Measures and the authorization by CSRC. CHAPTER II ESTABLISHMENT, ALTERATION AND TERMINATION Article 5. To establish a futures brokerage company, one shall meet the following requirements apart from the conditions provided for in the Interim Regulations on the Administration of Futures Trading: (1) Having senior managerial personnel with corresponding qualifications; (2) Having the corporate governance in conformity with the modern enterprise system; and (3) Other conditions required by CSRC. Article 6. A futures brokerage company may apply for operating the following futures business: (1) Futures brokerage; (2) Futures consultation and training; (3) Other business approved by CSRC. Article 7. A futures brokerage company may, according to business needs, apply for establishing business departments, branch companies and other branches approved by CSRC. A futures brokerage company shall meet the following conditions to apply for establishing a business department: (1) The applicant has no record of major violation of laws or rules in the previous year; (2) The person in charge of the business department to be established and the practicing personnel thereof have the qualifications for futures business; (3) The futures brokerage company has sound management system for the business department to be established; (4) The business department to be established has the business place and facilities fit for of brokerage business; and (5) Other conditions required by CSRC according to the principle of prudent regulation. The measures for the administration of the branch companies and other braches of futures brokerage companies shall be provided for by CSRC separately. Article 8. A futures brokerage company may not establish any business department in the name of "representative office", or "agency", by the forms of equity joint venture, contractual joint venture or joint management. Neither may it contract or lease the business department to others. Article 9. The establishment, merging and splitting of a futures brokerage company shall be subject to the preliminary examination of the agency of CSRC before being submitted to CSRC for examination and approval. The establishment of the business department of a futures brokerage company shall be subject to the ratification of the agency of CSRC of the place where the business department is to be established, and shall be submitted to CSRC for record. Article 10. Where a futures brokerage company undergoes any of the alterations prescribed in Items (1), (2), (4), (5), (6) of Article 26 of the Interim Regulations on the Administration of Futures Trading, or alters any shareholder with more than 10% of the stock equity or with de facto control of the company, the alteration shall be subject to the ratification of the agency of CSRC and be submitted to CSRC for record. However, in the case of alteration of a shareholder with more than 10% of the stock equity or with de facto control of the company, the qualification of that shareholder shall be subject to the ratification of CSRC in advance. Article 11. In case of any of the following alterations, a futures brokerage company shall put on record with the agency of CSRC within 10 workdays from the day of the alteration: (1) Modification of the articles of association; (2) Alteration of less than 10% of the stock equity; or (3) Other alterations provided for by CSRC. If any of the aforesaid alterations does not conform to the laws, regulations, rules or policies, the agency of CSRC shall have the power to ask the futures brokerage company to make correction. Article 12. In case of dissolution of a futures brokerage company, a liquidation group shall be formed pursuant to law to carry out liquidation. The liquidation group shall be responsible for formulating the liquidation scheme, settling the property, drawing up the balance sheet and property list, dealing with the credits and debts, paying the taxes and disposing of the surplus property. The agency of CSRC shall supervise the liquidation group in the disposition of the shareholdings and the security deposit of the investors. CHAPTER III BASIC RULES OF FUTURES BROKERAGE BUSINESS Article 13. A futures brokerage company shall, in conformity with the principle of good faith, execute the entrustment of the investors with appropriate skills, and with careful, cautious, diligent and responsible attitude to safeguard the legal rights and interests of the investors. Article 14. A futures brokerage company shall voluntarily avoid interest conflicts with the investors. If a conflict is unavoidable, the company shall ensure that the investor is treated impartially. Article 15. A futures brokerage company shall explain the risks of futures trading to the investors, and shall display the relevant laws and regulations on futures trading, the trading rules of the futures exchange, the rules for brokerage business and the detailed rules thereof at its business places for consulting by the investors. Article 16. Except otherwise provided for by CSRC, an investor must, when opening an account, hold the identity certification of Chinese citizen or the legal certificate of the qualification for Chinese legal person or other economic organization. Article 17. A futures brokerage company shall, before opening an account for the investor, show the Explanation on Risks of Futures Trading to the investor, who shall sign to confirm the understanding of the Explanation, and the company shall sign the contract of futures brokerage with the investor. The futures brokerage company may not open an account for the investor who hasn't signed the written Contract of Futures Brokerage. The format and contents of the Explanation on Risks of Futures Trading shall be provided for by CSRC. Article 18. An investor shall, in the contract of futures brokerage, define the trustee who will execute his orders, allocate the fund and handle other relevant matters, shall agree upon the methods of contacting and order giving, and shall take the trustee's signature in advance. Article 19. In any of the following situations, a futures brokerage company may terminate the contract of futures brokerage with the investor, liquidate and cancel the account of the investor: (1) The natural person investor dies, loses civil capacity or the legal person investor terminates; (2) The investor is declared bankrupt by a people's court; (3) The situation which is agreed upon by the futures brokerage company and the investor and not against statutory provisions; or (4) Other situations determined by CSRC. Article 20. An investor may terminate the trust relationship with the futures brokerage company by canceling the account. The investor shall go through the relevant procedures for the cancellation. Article 21. Except the situations described in Article 30 of the Interim Regulations on the Administration of Futures Trading, the following entities and individuals may not engage in futures trading: (1) Natural persons without civil capacity or with restricted civil capacity; or (2) The staff members of China Futures Association, future exchanges and futures brokerage companies and their spouses. Article 22. The personnel of a futures brokerage company undertaking futures business shall possess the qualification for future business. The advertisements and propaganda materials released by a futures brokerage company shall be put on record with the agency of CSRC. Article 23. A futures brokerage company shall, according to the encoding rules provided for by the futures exchange, distribute the trading codes to the investors and shall put on record with the futures exchange. And when writing off a trading code, the futures brokerage company shall put on record with the futures exchange. Article 24. A futures brokerage company shall establish the archives of account-opening information of the investors, which shall be kept secret except under inspections conducted pursuant to law. And the futures brokerage company shall establish a record of mistaken bills to record the disposition of mistaken bills. Article 25. A futures brokerage company shall establish and perfect the disposition system of the investors' complaints, and shall put on file the investors' complaints and the results of handling. Article 26. A futures brokerage company may stipulate the conditions for trading risk control and the treatments in the contract of futures brokerage. Article 27. A futures brokerage company shall open a security deposit account for the investors in the settlement bank designated by the futures exchange to specially keep the security deposit of the investors, which shall be separated from the self-owned fund of the company. A futures brokerage company must meet the following conditions when transferring the security deposit of an investor: (1) Paying the balance of the security deposit pursuant to the instructions of the investor; (2) Depositing the security deposit or settling the balance with the futures exchange for the investor; (3) The investor shall pay the commissions, taxes and other fees to the futures brokerage company; (4) Other conditions agreed upon by the two parties that are not against laws and regulations; and (5) Other conditions approved by CSRC. Article 28. An investor may give his instructions by means of written document, telephone, computer or on-line entrustment. In case of giving written instructions, the investor shall fill out the written instruction form; in case of giving instructions by telephone, the futures brokerage company must record the instructions on tape at the same time; in case of giving instructions by computer or on-line entrustment, the futures brokerage company shall keep the records that can prove contents of the instructions. On-line entrustment refers to the form of entrustment provided by the futures brokerage company through Internet to the investors, who have accounts in the company, for giving instructions on futures trading. Article 29. A futures brokerage company providing on-ling entrustment services shall establish the risk management system for on-line transactions, and specially point out the risk of on-line transactions to the investors. Article 30. A futures brokerage company shall transfer the investors' instructions according to the principle of time priority. Article 31. A futures brokerage company shall prepare the settlement report for the investors after the close each day. The investors shall have the right to know the contents of the settlement reports pursuant to the time and method agreed upon in the contract of futures trading. Article 32. If an investor has any disagreement with the contents of the settlement report, he shall present the disagreement in written form to the futures brokerage company within the period agreed upon in the contract of futures brokerage. If the investor has no disagreement with the contents of the settlement report, he shall confirm the report in the form agreed upon in the contract of futures brokerage. If the investor neither confirms the contents of the settlement report nor presents any disagreement, it shall be deemed that he confirms the contents of the settlement report. If the investor has any disagreement, the futures brokerage company shall, within the period agreed upon in the contract of futures brokerage, make verification according to the original instruction records and trading records. If the investor hasn't presented any disagreement within the agreed period, he may not present disagreement any more. Article 33. If any dispute concerning futures business arises between the futures brokerage companies or between the futures brokerage company and the investor, the parties concerned may apply to China Futures Association for settlement. Article 34. If the trading results are not in accordance with the instructions of the investor, or the forced closing out of positions is not in accordance with the legal or agreed conditions, where the futures brokerage company is at fault, it shall re-execute the instructions of the investor or restore the positions forcibly closed out within the period agreed upon in the contract of futures brokerage, and shall compensate for the direct losses incurred therefrom. Article 35. A futures brokerage company shall compile the records of the investors' instructions and the settlement reports into monthly reports. Article 36. The account-opening information, instruction records, settlement records and other business records shall be kept for at least 5 years. CHAPTER IV ORDINARY REGULATION Article 37. The License for Futures Brokerage Business and the Business License of Business Departments shall be uniformly designed and printed by CSRC. It is prohibited to forge, alter, rent, lend, assign or trade the License for Futures Brokerage Business and the Business License of Business Departments. Article 38. If the original or counterpart of any license is missing or seriously damaged, the futures brokerage company shall, within 30 days from the day on which it finds out the situation, declare invalidation of the license on the newspapers acknowledged by CSRC, and shall take the published declaration to apply to CSRC for a new license. Article 39. The relevant contents of the business license of a futures brokerage company or that of the business department of a futures brokerage company must be consistent with the corresponding contents of the licenses of that company or department. Article 40. A futures brokerage company may not use the licenses granted by CSRC for propaganda of or as guarantee of its business capacity and financial soundness. Article 41. A futures brokerage company shall, at least once a year, publicize the names, addresses, telephone numbers of its legal branches and the names of the persons in charge of those branches. Article 42. A futures brokerage company shall establish the department or post of risk control, and shall establish and strictly carry out the system of risk control. Article 43. A futures brokerage company shall set up the department or post of rule compliance, and shall, in fixed or unfixed term, examine the financial and business status of the company and the implementation of the relevant laws, regulations, rules, policies of the state and the articles of association and business rules of the company, and work out the report on rule compliance examination. Article 44. A futures brokerage company shall, pursuant to the provisions of CSRC, establish and perfect the system of financial safety evaluation and control, and shall submit the relevant materials pursuant to the requirements of CSRC. A futures brokerage company must set up separate departments to carry out the accounting work and settlement work. Article 45. The application materials or record materials submitted by a futures brokerage company to CSRC and the agency thereof must be true, accurate and complete. Article 46. A futures brokerage company shall retain the accounting firm with the corresponding qualification to audit the business operation and financial status of the company and produce the auditing report every year. The futures brokerage company must submit the list of the accounting firms with the corresponding qualification it retained to the agency of CSRC for record. If the futures brokerage company changes the accounting firms with the corresponding qualification it retained, it must report to the agency of CSRC and explain the reasons within 3 workdays from the change. Article 47. A futures brokerage company may not provide guarantee for others or become the investor with unlimited liabilities. Article 48. CSRC shall establish the report supervision system to supervise the financial safety of the futures brokerage companies. Article 49. CSRC and its agencies may inspect the futures brokerage companies and their business departments at any time. Article 50. The agencies of CSRC may ask a futures brokerage company to retain or directly retain the accounting firms with the corresponding qualification to make special audit or inspection of the futures brokerage company. The relevant expenses for the special audit or audit shall be paid by the futures brokerage company, the expenses for the accounting firms retained by the agency of CSRC shall be paid by CSRC. Article 51. The agencies of CSRC shall, according to the arrangements of CSRC, be in charge of the annual inspection of the futures brokerage companies and the business departments thereof under their respective jurisdiction. CSRC may, according to the regulatory needs, provide for the conditions, form, scope and emphasis of the annual inspection of each year and supervise the inspections. The format of the annual inspection report, the modes of the annual inspection mark and the annual inspection seal shall be uniformly provided for by CSRC. Article 52. For the futures brokerage companies and the business departments thereof that have passed the annual inspection, CSRC shall affix the annual inspection mark or the annual inspection seal on the License for Futures Brokerage Business or the Business License of Business Departments thereof. For the futures brokerage companies and the business departments thereof that fail the annual inspection, CSRC shall order them to stop business for rectification or write off the License for Futures Brokerage Business or Business License of Business Departments thereof. Article 53. If a futures brokerage company is suspected to have seriously violated the laws or rules, CSRC may suspend part of its futures business during the investigation period, and deal with it according to the conclusion of the investigation. Article 54. CSRC may, according to the needs, set up a special guarantee fund for futures investors to compensate for the losses of security deposit of the investors in case of a crisis of security deposit refund of the futures brokerage company. The measures for the source, management and use of the guarantee fund for futures investors shall be formulated separately by CSRC. CHAPTER V PROCEDURES FOR SPECIAL TREATMENT OF THE CRISIS OF SECURITY DEPOSIT FUND Article 55. If a crisis of security deposit refund occurs or may occur to a futures brokerage company and seriously affects the interests of the investors, CSRC shall have the power to give special treatment to that company. The decision of CSRC on special treatment shall include the following contents: (1) Name of the futures brokerage company specially treated; (2) Reasons for the special treatment; and (3) Duration of the special treatment. Article 56. Where the special treatment procedures starts on a futures brokerage company, the shareholding entities of the company shall form a special treatment work group. When necessary, the agency of CSRC may delegate representatives or entrust intermediary agencies to participate in the special treatment work group. The special treatment work group shall be subject to the supervision of the agency of CSRC. Article 57. The special treatment work group may take the following measures according to the situations: (1) Check the balance of the shareholdings and the security deposit of the investors and the reasons of the crisis of security deposit refund; (2) Handling the assets of the futures brokerage company and recover the matured creditor's rights; (3) Recovering the investors' security deposit that have been misappropriated; (4) Deciding on the scheme for handling the shareholdings and security deposit of the investors; (5) Formulating and carrying out the scheme on rectification of the futures brokerage company; (6) Other measures that the special treatment work group deems necessary. Article 58. During the special treatment, if the special treatment work group deems it needed to liquidate the futures brokerage company, the liquidation shall be, with the consent of the shareholders' conference, submitted to CSRC for approval. Article 59. Under any of the following circumstances, the special treatment shall be terminated: (1) The duration or the extension prescribed in the special treatment decision expires; (2) The futures brokerage company has restored the normal business capacity before the duration prescribed in the special treatment decision expires; or (3) The futures brokerage company is merged or is declared bankrupt pursuant to law before the duration prescribed in the special treatment decision expires. CHAPTER VI RULES OF PUNISHMENT Article 60. If a futures brokerage company, in violation of the present Measures, commits any of the following acts, it shall be punished according to Article 59 of the Interim Regulations on the Administration of Futures Trading: (1) Accepting the entrustment to conduct futures trading of any investor who hasn't opened an account; (2) Inducing investors to conduct futures trading through false propaganda; (3) Failing to perform the obligations of reporting or putting on record pursuant to the provisions; (4) Violating the provisions of CSRC on financial management and failing to meet the standards even after making correction within specific time limit; (5) There are false information or major omissions in the submitted materials; (6) Setting up any business department of futures brokerage company in the form of equity joint venture, contractual joint venture or joint management; or (7) Contracting or leasing the business department of the futures brokerage company to others. CHAPTER VII SUPPLEMENTARY PROVISIONS Article 61. The present Measures shall come into force on July 1, 2002, the Measures for the Administration of Futures Brokerage Companies promulgated on August 31, 1999 shall be repealed at the same time. |
||||||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||
|
Copyright 2002 NovexCn.com
|