Interim Measures For The Administration Of Futures Investor Safeguard Funds

Original Language Title: 期货投资者保障基金管理暂行办法

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(April 19, 2007, China Securities Regulatory Commission, Ministry of Finance promulgated as of August 1, 2007, 38th) Chapter I General provisions article for the protection of the legitimate interests of future investors, in accordance with the regulations on futures trading, these measures are formulated.
    Second a futures investors protection Fund (hereinafter referred to as the Fund) is in futures companies serious violation or inadequate risk controls led to security gaps, may seriously endanger the stability of societies and the futures market when the Special Fund to compensate investors for margin losses.
    Third futures trading activities in an open, fair, just and investors make investment decisions the principle of autonomy, invest at your own risk.
    Investors in futures investment activity in the futures market fluctuations or changes in investment value itself as a result of the loss, by investors at their own expense.
    Article fourth of the Fund according to what is taken from the market, used in the principle of raising.
    Article fifth Fund centralized management, integrated and used by the CSRC.
    Article sixth fund management and use follows the principle of open, reasonable and effective.
    Article seventh Fund used to follow to protect the interests of investors and the principle of equitable relief, under the proportional compensation.
    Chapter fund raising article eighth fund management institutions should be to fund special account established on behalf of funds, special storage Fund.
    Nineth fund start-up capital risks accumulated by futures exchanges from its reserves in a risk reserve account as at December 31, 2006 total of 15% pay form.
    Subsequent funding of the Fund include: (a) futures by the futures company 3% pay transaction fees charged by its members, (ii) in futures transaction fee charged by the company from its pay in agent turnover five out of 10,000 to ten; (c) the Fund management of recourse against the agency or receive other lawful property. Due to financial situation deteriorated, risk of inadequate control of high risk of futures companies, shall be paid in accordance with a higher proportion of the Fund, the futures company specific proportion paid by CSRC based on risk profiles to determine the futures company.
    Futures Exchange, futures companies to pay in its operating cost would be covered by the guarantee fund.
    Tenth Futures Exchange shall within 1 month from the date on which the implementation of these measures, start-up funds shall be paid into Fund account. Futures Exchange, futures companies should pay follow-up funds on a quarterly basis.
    Futures Exchange shall, within 15 working days after the end of each quarter, pay the guarantee fund shall be paid in the previous quarter, and these measures are in accordance with article Nineth daikou futures companies should pay the Fund.
    11th under any of the following circumstances, approved by the China Securities Regulatory Commission, the Ministry of finance, Futures Exchange, futures companies may suspend payment of the Fund: (a) the Fund amounted to 800 million Yuan, (ii) Futures Exchange, futures companies suffered big market risk or force majeure.
    Guarantee fund, pay scale and pay their way, by China Securities and futures market development, market risk levels to determine that.
    12th Fund shall be encouraged to diversify sources of guarantee fund can receive social donations and other lawful property.
    Of fund interest and using the fruits attribution of income arising from guarantee fund.
    13th chapter fund management and supervision of China Securities Regulatory Commission, Ministry of finance may specify the relevant institutions as fund management institutions, on behalf of the management of the guarantee fund.
    Article 14th on the management of the guarantee fund shall follow the principles of the safety, soundness, and security of guarantee fund.
    Fund of funds limited to bank deposits, purchase of Treasury and Central Bank bonds (including the Central Bank) and the central-level financial bonds issued by financial institutions, as well as other funds approved by the China Securities Regulatory Commission and the Ministry of finance.
    15th Fund should be independent accounting, management, and other asset management and fund management institutions effectively isolated.
    Of fund management institutions should regularly compiling fund raising, management, usage reports, audited by an accounting firm, submitted to the China Securities Regulatory Commission and the Ministry of finance.
    16th fund management institutions, and futures of the Futures Exchange Company shall keep the relevant fund accounting vouchers, books and reports and other information to ensure that financial records and documents are complete and true. Article 17th Ministry of finance is responsible for Fund financial supervision.
    Fund's annual revenue and expenditure plan and final approval of the Treasury.
    18th CSRC is responsible for fund management, fund raising, management and use of the periodic verification. The China Securities Regulatory Commission to inform future Fund Management Agency periodically the company's overall risk profile.
    There is a high risk the futures company shall monthly financial statements to fund management institutions.
    Article 19th of the fourth chapter Fund futures companies due to serious illegal or poor risk control, led to security gaps, according to China Securities Regulatory Commission decided to use the Fund as provided herein, compensation for margin loss cannot pay back investors.
    20th article on futures investors of margin loss, guarantees Fund according to following principles be compensation: (a) on each bit personal investors of margin loss in 100,000 yuan following (containing 100,000 yuan) of part full compensation, over 100,000 yuan of part by 90% compensation; (ii) on each bit institutions investors of margin loss in 100,000 yuan following (containing 100,000 yuan) of part full compensation, over 100,000 yuan of part by 80% compensation.
    Existing Fund insufficient compensation, the guarantee fund paid by subsequent compensation. Article 21st before the use of the guarantee fund, the China Securities Regulatory Commission and fund management institutions shall supervise verification of deposit interest of investors and the futures company losses, active asset disposals and liquidations disposal, should start with its own capital and liquidated assets to make up for margin shortfall.
    Insufficient cover or in critical condition, can decide to use the Fund.
    22nd investor margin losses for engaging in illegal futures trading, Fund not be compensated.
    Personally involved in futures trading by institutional investors, according to institutional investor compensation rules for compensation.
    Article 23rd of the guarantee fund for futures investors compensated for loss of deposit, fund management institutions shall obtain the corresponding claim, shall participate in the futures company liquidation.
    Article 24th of fund management institutions shall promptly fund use, compensation, compensation reports, such as the China Securities Regulatory Commission and the Ministry of finance. Fifth chapter penalty provisions article 25th futures companies due to serious illegal or poor risk control, led to security gaps, 70th of China Securities Regulatory Commission in accordance with the regulations on futures trading, 71st penalty, revoking the futures business licenses.
    A suspected crime, transferred to the judicial organs according to law.
    26th a Futures Exchange, futures companies violate these rules, defer the payment of, or refusing to pay the Fund as well as save is not required, to submit relevant information and data, the China Securities Regulatory Commission under the regulations on futures trading 68th, 70th, penalty.
    27th for misappropriation, embezzlement and cheating Fund violations, to investigate and punish; on the dereliction of duty officers, shall be investigated for legal responsibility according to law; a suspected crime, transferred to the judicial organs according to law.
                                                                    Sixth chapter supplementary articles article 28th these measures shall take effect on August 1, 2007.

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