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China Securities Regulator Revises Futures Firm Rules, Tightens Shareholder Duties and Business Classification
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On September 11, the China Securities Regulatory Commission (CSRC) revised the Administrative Measures for Futures Companies and issued an implementation announcement. The revisions categorize futures company businesses into basic services (domestic futures brokerage and futures trading consulting) and trading services (futures market-making, futures asset management, and derivatives trading), with improved regulatory requirements for establishment, changes, and business access. The CSRC strengthened supervision over shareholders and actual controllers, reinforcing their obligations to provide explanations and reports to enhance equity transparency. Corporate governance and internal controls are improved, requiring sound organizational structures and stronger compliance, risk management, and internal controls. Supervision over subsidiaries and branches is tightened with enhanced filing management. Business rules are refined, including comprehensive regulations for major businesses. Regulatory enforcement is comprehensively strengthened with refined provisions on supervision, administration, and legal liabilities.
Source report
On September 11, the China Securities Regulatory Commission (CSRC) revised the Measures for the Supervision and Administration of Futures Companies and formulated the Announcement on Matters Concerning the Implementation of the Measures for the Supervision and Administration of Futures Companies.
The revisions focus on the following six key areas:
- Business Categorization and Regulatory Refinement
Futures companies' businesses are divided into two categories:
- Basic services: Domestic futures brokerage and futures trading consulting
- Transactional services: Futures market-making, futures asset management, and derivatives trading
Regulatory requirements regarding the establishment, changes, and business access of futures companies have been specifically improved.
- Enhanced Oversight of Shareholders and Controllers
Supervision over shareholders and actual controllers of futures companies is strengthened. Shareholders' obligations to provide explanations and reports are reinforced, and equity transparency in futures companies is enhanced.
- Improved Corporate Governance and Internal Controls
Futures companies are required to establish sound organizational structures and strengthen compliance management, risk management, and internal control requirements.
- Tighter Supervision of Subsidiaries and Branches
Oversight of subsidiaries and branches of futures companies is tightened, with enhanced filing management.
- Refined Business Rules
General business norms are improved, and comprehensive regulations are established for major businesses, including domestic futures brokerage, futures market-making, and futures asset management.
- Strengthened Regulatory Enforcement
Provisions on supervision, administration, and legal liabilities are further refined to comprehensively strengthen regulatory enforcement.
Source
thsEastern