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Monday, March 26, 2001, updated at 16:11(GMT+8) | ||||||||||||||
Business | ||||||||||||||
Fund Management Companies to Accelerate Market-oriented ReformsA spokesperson for China Securities Regulatory Commission (CSRC) said March 25 that while conducting systematic investigation of the problems existing in the standard operation of securities investment funds, CSRC has also taken a series of measures for updating the idea about the supervision of funds, conspicuously intensifying management, spuring fund management companies to improve the legal person management structure, perfect the internal control mechanism and promote market-oriented reforms.--- CSRC requires that fund management companies (including those in the planning stage) perfect the management structure and institute an independent board of directors system, its number shall not be less than one-third of all of the company's directors and shall be more than the number of directors nominated by the first shareholder. This is aimed, through drawing on the experience of international practice, at restraining unfair transactions between fund management companies and shareholders, perfecting the internal control mechanism of the board of directors, supervising and urging the company's managers to strictly fulfill contract commitments, intensifying internal control mechanism and disciplinary procedures, and regulating working staff's behavior and protecting the lawful rights and interests of fund holders. --- CSRC emphasizes that fund management companies, stock exchanges, trustee banks are supposed to coordinate well to prevent law-breaking behaviors. Fund management companies and fund managers shall bear responsibilities for stock exchange transactions and stock exchanges shall monitor fund accounts and other investors' accounts at any time to give alert, warning and public condemnation according to different cases. --- Supervision departments shall further adjust their focus of work, intensify supervision and make systematic amendments to related regulations. CSRC has set out to revise the examination and verification system and set up a procedure for experts discussion, it has also been proposed to change working styles by introducing a work shift system for staffers, adjust internal rules and regulations, and institute a challenge system for close relatives of working staff to work in the same companies and further clarify the supervision role. By PD Online staff member Li Yan
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