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CSRC Released New Rules
China Securities Regulatory Commission (CSRC) recently issued new rules on check-up on securities companies in order to strengthen supervision and regulate operation. According to the rules, CSRC and its stationed institutions have the right to conduct inspection on the standardization, regulation and security about securities companies at any time in a bid to ward off financial risks.
The rules apply to securities firms along with their sales and service departments approved to be set up by CSRC, and the securities departments of entrust investment companies.
The new rules said the check-up can be on-the-spot or not on-the-spot. CSRC can also entrust qualified accountants and lawyers to inspect securities firms. Any brokerages that refuse to be checked or cooperates, or its supervisory accountant firm refuse to be checked or hide information, will be punished by CSRC under related laws and regulations.
According to the rules, any company that fails to pass the inspection is required to rectify and reform, otherwise will be disclosed and criticized. The result of inspection will be taken as one of the proofs for the annual inspection. For any violation and infringement in the companies, CSRC will impose punishment to relevant leaders of the companies or even send to judicial departments for criminal cases. (Panorama)
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