(Released July 20, 2006, China Securities Regulatory Commission for the 34th since as of November 1, 2006) Chapter I General provisions article to establish net capital as the core of the risk control system, strengthening the risk management of securities companies, urged securities firms to strengthen internal control, risk prevention, according to the securities law and other relevant laws, administrative regulations, and these measures are formulated.
Second securities firm shall be calculated in accordance with the regulations of net capital and risk, calculation of net capital and risk control indicators monitoring reports.
Article III of the China Securities Regulatory Commission (hereinafter referred to as the China Securities Regulatory Commission) according to market development and the principle of prudent regulation, calculated on the net capital rule, risk control indicators and standards, calculation of risk ratios, the business of calculating adjustments; before the adjustment, should publicly seek the advice industry, and transitional arrangements for the adjustment of the implementation. This approach does not provide risk-adjusted proportion or risk calculation/rates of new products, new business, securities investments before the products or carry out the business of the company, shall, in accordance with the provisions prior to the China Securities Regulatory Commission, the company registration agency of the China Securities Regulatory Commission (hereinafter Agency) report or approval.
China's securities and Futures Commission under the securities company features new products, new business and risk profile, based on consultation with the industry to determine appropriate risk-adjusted ratios and risk calculations.
Fourth China Securities and Futures Commission may in accordance with the classification principles, under the standard of corporate governance, internal control and risk management, risk control indicators for different types of company standards and a business risk calculation of proportion to make proper adjustments.
Fifth China Securities Regulatory Commission and its agencies should be on securities firms net capital risk control indicator data generation process and result for the authenticity, accuracy and completeness or to be checked on a regular basis.
The China Securities Regulatory Commission and its agencies under the regulatory needs, requiring securities firms to employ qualified accounting firm with securities related business on monthly net capital computation table audit supervision and risk control indicators report.
Sixth securities firm shall, according to their balance sheets and business development, establish a dynamic monitoring and risk control indicators complement the mechanism to ensure that net capital and other risk control indicator at any point up to the required standard.
Securities companies should be carried out in various business and profits before risk control indicators are sensitivity analysis, rationally determine business and distributing the largest.
Seventh securities companies securities related qualification should be employed with a firm of Accountants for its annual net capital computation of audit supervision and risk control indicators report.
Eighth accounting firms and CPAs should be conscientious, securities firms net capital computation of risk control indicators and regulatory auditing the authenticity, accuracy and completeness of the report, and be responsible for authenticity and validity of the audit report.
Nineth net capital net capital and its calculation in chapter II refers to the terms of the business characteristics and liquidity of the assets and liabilities of the company, the net worth of the assets and liabilities on the basis of the project and related business risk-adjusted results of integrated risk control indicators.
Net capital base calculation formula is: = net capital investment risk-adjusted net assets-financial products-risk adjustment of receivables-other current assets project risk-long-term risk-adjusted assets-contingent liability risk-adjusted-/+ of China Securities Regulatory Commission found other adjustments or approved projects.
Tenth securities company shall, according to the China Securities Regulatory Commission under securities firms net capital net capital standard. 11th securities company calculate net capital shall be in accordance with the provisions of the relevant accounting standards, proprietary securities, accounts receivable, long-term investments, fixed assets, construction, intangible assets, settled assets projects full provision for impairment of assets.
Among them, the proprietary extraction write-down of securities shall on a monthly basis, according to the individual. The China Securities Regulatory Commission and its agencies may require special explanation for impairment of assets the company extracted sufficient and reasonable.
There is evidence to show that the company did not make full provision for asset impairment, the China Securities Regulatory Commission and its agencies may require the company to add extraction for impairment of assets and a corresponding reduction in net capital amount.
12th securities companies should be current and long-term assets financial products investment in the consolidation, unified risk adjustment. 13th securities company stocks, in accordance with the classification of stocks and liquidity risks in different ratio adjustment.
Stocks in the category at the same time meet the standards of two or more, should be carried out with the highest proportion of risk adjustment.
For securities companies break the rules disproportionately large holdings of securities investment, China Securities Regulatory Commission and its agencies can ask the securities company in calculating net capital improved risk-adjusted ratios.
14th securities companies involved in the collection of the company set up with their own capital asset management plan, should invest in the aggregate asset management contract amount, duration and liability, such as conventions, and under responsibility of the corresponding deductions when calculating net capital invested funds. 15th aging of receivables in accordance with article length and to recover the situation different in proportion to risk-adjusted, age should count on the business point. In addition to deposits paid projects, both the classification of receivables in line with two or more standards, should be carried out with the highest proportion of risk adjustment.
There is evidence to show that it is difficult to recover the deposit paid projects, should be carried out according to the length of the aging risk adjustment.
Securities companies shall, in accordance with the requirements of accounting standards, overdue interbank funds, buying back the sale of securities, cash bonds projects into account accounting for receivables and receivables deduction principle of risk-adjusted. 16th securities companies should be disclosed in the net capital computation, full disclosure of contingencies at the end of the company's property (such as pending litigation, pending arbitration, providing guarantees, and so on), the amount involved, causes and developments, possible losses and accounting treatment of expected losses.
Is likely to result in an outflow of economic benefits or matters of the company, should confirm that the expected liabilities than is likely to result in an outflow of economic benefits or matters of the company, in the calculation of net capital shall be according to the percentage reduction in contingent liabilities.
17th borrowed subordinated debt securities company, in calculating net capital by borrowing subordinated debt in a certain proportion into account net capital.
Securities companies to stockholders or its affiliates to borrow subordinated debt nature of the term in more than 5 years and long-term borrowings, in calculating net capital by borrowing long-term loans according to certain proportions take into account net capital.
Recorded net capital ratio by the CSRC in accordance with debt maturities and the company's financial position to determine.
Chapter III risk control indicators standard 18th securities firm engaged in securities brokerage business, and its net capital shall not be less than RMB 20 million Yuan.
Securities firm engaged in securities underwriting and sponsorship, securities, securities and asset management, one of the other securities business, net capital shall not be less than RMB 50 million Yuan.
Securities firm engaged in securities brokerage, also operate securities underwriting and sponsorship, securities, securities and asset management, one of the other securities business, net capital shall not be less than RMB 100 million Yuan.
Securities companies sponsor, securities, securities underwriting and asset management, two and two or more other securities business, and its net capital shall not be less than 200 million Yuan.
19th article securities company must continued meet following risk control index standard: (a) net capital and the risk prepared of and of proportion shall not below 100%; (ii) net capital and net worth of proportion shall not below 40%; (three) net capital and liabilities of proportion shall not below 8%; (four) net worth and liabilities of proportion shall not below 20%; (five) liquidity and flow liabilities of proportion shall not below 100%.
20th securities firm engaged in securities brokerage business, must comply with the following requirements: (a) the total amount of transaction settlement funds by hosting customer 2% to calculate the risk, (ii) net capital average sales amount converted amount (number of net capital/business) shall not be less than 5 million Yuan.
21st article securities company business securities proprietary business of, must meet following provides: (a) proprietary stock scale shall not over net capital of 100%; (ii) securities proprietary business scale shall not over net capital of 200%; (three) holds a non-bonds class securities of cost shall not over net capital of 30%; (four) holds a securities of market and the class securities total market of proportion shall not over 5%, but for underwriting led to of case and China SFC another has provides of except;
(E) violation of rules disproportionately self-employed, in part of the corrective action prior to the completion of the excess should be calculated according to the cost of 100% risk.
Proprietary stock size referred to in the preceding paragraph refers to securities company stock investments total amount at cost price; securities business, refers to securities company stock investment and securities investment funds (excluding money market funds) to calculate the total amount of the investment at cost price.
Securities firms create warrants that, when calculating the equity investment, securities companies could sell the warrants by stock investment cost minus the net proceeds (excluding securities companies to redeem warrants the expenditure of money) after the amount is calculated.
22nd article securities company business securities underwriting business of, must meet following provides: (a) securities company underwriting stock of, should by bear underwriting obligations of underwriting amount of 10% calculation risk prepared; (ii) securities company underwriting company bonds of, should by bear underwriting obligations of underwriting amount of 5% calculation risk prepared; (three) securities company underwriting Government bonds of, should by bear underwriting obligations of underwriting amount of 2% calculation risk prepared. When calculating the underwritten amount and syndicate through the company's underwriting amounts and strategic investors, entered into a written agreement the subscription amount is not included.
Securities companies underwriting more than the public offering of securities of the issuer, issue crossover, and the issue is not over yet, shall, in accordance with individual underwriting risk a ratio and correspond to the amount of business.
23rd securities firm engaged in securities and asset management businesses, must comply with the following requirements: (a) directional risk calculated on the asset management business, managing principal of 2% preparation; (b) calculated according to the collective asset management business management 1% of principal risk; (c) the special asset management business management 0.5% to calculate the risk of principal.
24th article securities company for customer sale securities provides financing thaw coupons service of, must meet following provides: (a) on single customer financing business scale shall not over net capital of 5%; (ii) on single customer thaw coupons business scale shall not over net capital of 5%; (three) accept single guarantees stock of market shall not over the stock total market of 20%; (four) by on customer financing business scale of 10% calculation risk prepared; (five) by on customer thaw coupons business scale of 10% calculation risk prepared.
Scale of financing referred to in the preceding paragraph, refers to the principal total customer funds are melting; lending and borrowing operations, refers to the customer into the securities in the financial market as a whole.
25th securities companies should be calculated according to the total operating expenses for the previous year of 10% risk operational risk.
26th, China Securities Regulatory Commission on the various indicators of risk control settings alarm standard provisions "shall not be less than" certain standards of risk control, its early warning criteria are criteria specified in 120%; requirement "not to exceed" certain standards of risk control, its early warning criteria are criteria specified in 80%.
The fourth chapter presentation and disclosure 27th has subsidiaries of securities companies should be based on data of the parent company, net capital computation and control indicators monitoring reports.
The China Securities Regulatory Commission and its agencies under the regulatory needs, requires securities companies to merge data net capital computation of supervision and risk control indicators report.
28th securities company directors and senior managers of the company shall be half-yearly net capital and risk control indicators, annual regulatory report signature verification opinion.
Securities companies management Chief, in charge of finance to the company's monthly net capital computation of supervision and risk control indicators report signature verification opinion.
Securities firms net capital computation of supervision and risk control indicators report the person signing on, should ensure that net capital computation of supervision and risk control indicators report is true, accurate and complete, and does not contain any false record, misleading statements and material omissions; calculation of net capital and risk control indicators monitoring report content should be indicated in the report his opinion and reasons.
29th article securities company should at least each half by main head signed confirmed Hou, to company all Director written report a times company net capital, risk control index of specific situation and standard situation; securities company should at least each half by Board signed confirmed, to company all shareholders written report a times company net capital, risk control index of specific situation and standard situation, and at least get main shareholders of sign confirmed proved file.
Net capital indexes more than compared with the previous month, 30% changes or when it is not up to the required standard, the securities firms shall report to the company all the directors in writing within 5 working days, written report to all the shareholders of the company within 10 working days.
30th securities firm shall within 5 working days from the date of the end of each month, to the CSRC and its agencies submit monthly net capital computation of supervision and risk control indicators report.
Agencies under the regulatory needs, requires jurisdictions within a single, part or all of the securities company within a certain period on a weekly or daily prepared and submitted to the net capital computation of supervision and risk control indicators report.
31st the securities firm's net capital, risk control, such as indicators changes compared with the previous month over 20%, should be within 3 working days from the date of this situation, and its agencies report to the CSRC, description and reasons for the changes.
32nd securities firms net capital, risk control, such as indicators of early warning standards or does not comply with the required standards, shall be respectively in the case of day 3, 1 business day, and its agencies report to the CSRC, basic condition, origin of issues and problem solving of concrete measures and deadlines.
The fifth chapter 33rd securities regulatory measures the company's financial and accounting reports, net capital computation, risk control indicators monitoring reports were certified public accountants to issue reservations no reservations or an explanatory paragraph, securities companies should involve special explanation on the matter.
Relating to matters which do not belong to a clear violation of accounting rules, securities firms net capital rules and other relevant provisions, the China Securities Regulatory Commission and its agencies can require securities firms to explain the matter to the company's net capital, risk control, such as indicators of impact.
Relating to matters which are in clear violation of accounting standards, securities firms net capital rules and other relevant provisions, the China Securities Regulatory Commission and its agencies can ask the securities company deadline to correct, re-calculation of net capital and risk control indicators monitoring report securities company is not period correct, the China Securities Regulatory Commission and its agencies can maintain their net capital, risk control indicator below standard.
Article 34th financial report of the company, the net capital computation, risk control indicators monitoring report is issued by the certified public accountant was unable to express a view or an adverse opinion, China Securities Regulatory Commission and its agencies can maintain their net capital, risk control indicator below standard. 35th article securities company net capital or other risk control index reached warning standard of, sent institutions should difference case, on its take following measures: (a) to its issued regulatory concern letter and CC company main shareholders, requirements company description potential risk and control measures; (ii) on company senior management personnel for regulatory talk, requirements company take measures adjustment business scale and assets liabilities structure, improve net capital level; (three) requirements company for major business decision Shi,
At least 5 working days in advance to submit special reports on the business of the company's financial situation and the impact of net capital, risk control, such as indicators and (d) ordered companies to increase their internal compliance inspection frequency of compliance inspection report and submit.
36th securities firms net capital or other risk indicators do not conform to the required standards, agencies shall order the company correct within 5 working days to develop and submit the corrective action plan, the time limit for rectification shall not exceed 20 business days; securities firm fails to submit the corrective action plan, agencies should immediately limit their business activities.
Rectification period, the China Securities Regulatory Commission and its agencies should be distinguished, of securities firms to take the following measures: (a) to stop approval of new business, (ii) stops operating approval for the creation, acquisition branch, (iii) limit the distribution of dividends (iv) limit set in the property transfer of property or other rights.
37th after rectification of securities companies, the Agency inspection in accordance with the relevant indicators of risk control, the China Securities Regulatory Commission and its agencies shall be checked within 3 working days from the date of the lifting of the measures taken. 38th article securities company not regular completed rectification of, since rectification term due of next day up, sent institutions should difference case, on its take following measures: (a) limit business activities; (ii) ordered suspended part business; (three) limit to Director, and prison thing, and senior management personnel paid paid, and provides welfare; (four) ordered replaced Director, and prison thing, and senior management personnel or limit its right; (five) ordered holding shareholders transfer equity or limit about shareholders exercise shareholders right; (six) finds Director, and prison thing, and
Senior management is not fit and proper.
39th securities company fails to complete the rectification, risk control indicators continue to deteriorate, seriously endangers the operation of securities companies, the China Securities Regulatory Commission may revoke its business license.
40th securities company risk control not standard, seriously endangering market order and damage the interests of investors in securities, the China Securities Regulatory Commission can tell, to take the following measures: (a) to order the rectification, (ii) other specified agencies managed, taking over; (c) the revocation of permit to operate securities business; (d) repealed.
Sixth chapter supplementary articles article 41st this way the meaning of the following terms: (a) risk: due to operational risks, and may result in net capital losses, it should be calculated according to the percentage of the business risk and establish corresponding relations with net capital, makes the business risk preparedness there is net capital to support.
(Ii) sensitivity analysis: the other conditions under the premise, single or multiple factors on the possible effects of net capital, risk control, such as indicators, and judge whether it will lead to net capital, risk control indicator does not meet warning criteria or standards.
(C) the debt, current liabilities: external debt, excluding the sale of securities.
(D) assets current assets: assets, not including customer assets.
(E) contingent liabilities: the potential obligations from past transactions or events, future uncertain matters of its existence will be confirmed or not; or past transaction or event to form the present obligations, performance of the obligation is not very likely to lead to an outflow of economic benefits enterprise or the amount of the obligation cannot be measured reliably.
(F) securities: shares, bonds or other securities issued by the issuer, in which different market shares do not belong to a security, shall be calculated separately.
(G) the deposit paid projects: refers to receivables arising from securities companies due to the delivery time as well as in other units of the security deposit.
(VIII) significant business: after measurement may result in net capital or other risk control over 10% changes in the indicators of business.
42nd these measures shall come into force on November 1, 2006.
