(August 8, 2005 Chinese Banking Regulatory Commission announced 2005 of 1th come into force on September 1, 2005) Chapter I General provisions article in order to facilitate the further improvement and development of China's financial market, standardize the management of money brokerage companies, according to the People's Republic of China Banking Regulatory Act and the People's Republic of China people's Bank of China law these measures are formulated.
    Article money brokerage companies mentioned in these measures refers to approved to set up in China, by electronic or other means, which specializes in financing and foreign exchange transactions between financial institutions, brokerage services, and non-bank financial institution charges a Commission.
    Money brokerage companies doing business must comply with article III People's Republic of China laws and administrative regulations and shall not harm the People's Republic of China public interest. Fourth, China Banking Regulatory Commission for supervision and management of money brokerage companies.
    Money brokerage companies in the interbank market for interbank lending, bond trading and Forex trading, brokering activities should be at the same time accepting people's Bank of China and State administration of foreign exchange regulation and inspection; matters involving foreign exchange management of his business, shall implement the relevant provisions of the State administration of foreign exchange, and accept the supervision and inspection of the State administration of foreign exchange.
    Chapter II establishment of money brokerage companies, change and termination article fifth establishment of money brokerage companies require the approval of the China Banking Regulatory Commission, without approval, no units and natural persons shall any establishment of money brokerage companies or in disguise, in monetary brokerage business, shall not use or disguised in the name of "money broker" and so forth.
    Sixth China Banking Regulatory Commission on approving the establishment of money brokerage companies applications, should take full account of China's foreign exchange market, money market, capital market and derivatives market competition and the development of, and to the regulatory authorities for public comment.
    Article seventh in People's Republic of China territory owned or joint venture with the Chinese side the establishment of money brokerage companies overseas investors must meet the following conditions: (a) in the host country or region according to law the establishment of money brokerage companies.
    (B) engaged in money brokerage business for more than 20 years, healthy, have a sound internal control system.
    (C) good credit, no major violation records.
    (D) earnings and net income after taxes each year for three consecutive years prior to the application of not less than $ 5 million.
    (V) necessary to have money broker services global network of institutions and information communication network.
    (Vi) in China to set up representative offices in China for more than 2 years.
    (G) the country or region where there are sound financial supervision and regulation system, and the applicant by the competent authorities of the country or region where the effective supervision of the regulatory authorities regulatory memorandum was signed with the China Banking Regulatory Commission.
    (H) the China Banking Regulatory Commission other prudent requirements as specified by.
    Article eighth applying for the establishment of money brokerage companies or Chinese investors and foreign joint-venture establishment of money brokerage companies must meet the following conditions: (a) legally established non-bank financial institutions.
    (B) in the money market, foreign exchange and other agency business for more than 5 years.
    (Iii) solid, have a sound internal control system.
    (D) good credit, no major violation records.
    (E) profit for three consecutive years prior to the application.
    (F) the China Banking Regulatory Commission other prudent requirements as specified by.
    Nineth establishment of money brokerage companies should meet the following requirements: (a) comply with the minimum registered capital required by this approach.
    (B) is in conformity with the People's Republic of China company law and other related laws and regulations required by this approach.
    (C) familiar with money brokers and business executives.
    (D) have a sound organizational structure, management system and risk control system.
    (E) has the business operations of business premises, safety facilities and measures.
    (F) the China Banking Regulatory Commission other prudent requirements as specified by. Article tenth establishment of money brokerage companies and their subsidiaries must go through to build and opened in two stages.
    Opened applications for the preparation and the information submitted by the applicant, written in Chinese shall prevail.
    11th money brokerage companies the minimum registered capital is RMB 20 million or its equivalent in a freely convertible currency, registered capital is paid in cash.
    According to the China Banking Regulatory Commission money broker business development and prudential requirements, adjust the minimum amount of the registered capital, but shall not be less than the minimum prescribed in the preceding paragraph.
    12th money brokerage companies proposed banking Board is auditing organs of companies and their subsidiaries to set up applications, the China Banking Regulatory Commission is money brokerage companies and their subsidiaries to set up application and approval authorities.
    13th article application preparation currency brokers company, should by investment proportion maximum of investors to China banking supervision Management Committee submitted written application, and submitted following material: (a) by investors of statutory representative people signed of established owned or joint venture currency brokers company of applications, its content should including: intends established institutions of name, and registered to, and registered capital, and investors funded proportion, business range,.
    (B) feasibility study.
    (C) the proposed establishment of money brokerage companies regulation.
    (D) the investor country regulatory authorities issued business license (copy) or a copy of the company registration documents.
    (E) the investor country regulatory authorities or industry association Comment Letter to their application.
    (F) the basic situation of investors.
    (G) by a qualified accounting firm audit or national competent authorities identified the accounting statements of the last 3 years.
    (H) joint venture agreement or commitment or contract signed by both sides.
    (I) application materials issued by the legal representative of the investors authentic statements.
    (10) other information required by the China Banking Regulatory Commission.
    This article by column material except subsection (four), and (five), and (six), and (seven) items outside are should is Chinese text; subsection (four), and (five), and (six), and (seven) items should provides Chinese text, as has conflict, to Chinese text for associate; which outside investors of "license or company registered file" must by where national or area recognized of notary institutions notary, or by China standing the country Embassy or Consulate certification. 14th in receiving the application for establishment of CBRC information within 5 business days after completion of the data integrity review. If the application is not complete or does not comply with these rules in the form of, the CBRC once to inform the applicant in writing to add the entire contents of, and applied for by the applicant to provide supplementary information. Complete information on the application form and in accordance with the provisions of, the CBRC shall accept and notify the applicant in writing within 5 working days.
    Should be completed within 20 working days of CBRC trial work and materials to the China Banking Regulatory Commission.
    China Banking Regulatory Commission within 4 months of receipt of complete application materials for the preparation of whether or not to agree to grant a written decision.
    15th money brokerage companies and their branch's lead for a period from the date of receiving the approval of the China Banking Regulatory Commission documents for 6 months. Did not complete the preparation within the prescribed period, justified and approved by the China Banking Regulatory Commission, can be extended by 3 months.
    During the extended period has yet to complete the preparation of the China Banking Regulatory Commission, the approval document shall automatically become invalid.
    Its preparation period shall not in money brokerage companies or engage in business activities on behalf of the branch. 16th the applicant receiving the approval of the China Banking Regulatory Commission within 30 working days from the date of the letter, should raise enough capital and stored in the Chinese territory accounts, verified by qualified accounting firm, issue a verification report.
    Only do not receive pay during the account verification.
    17th the applicant shall before the expiry of the deadline of the establishment or extension, apply for business commencement to the China Banking Regulatory Commission, and submit the following documents and information: (a) on completion of the preparation report and application for business commencement.
    (B) the Chinese capital issued by a statutory capital verification organization certificate, issued by the administrative authority for industry and Commerce pre approved registration of the proposed name.
    (C) the money brokers Association.
    (D) the proposed senior management personnel names and detailed resumes and qualification documents.
    (E) name of shareholder and capital contribution.
    (F) the proposed business rules and procedures and internal control system.
    (G) trading venues, equipment and system security test report.
    (VIII) application materials issued by the legal representative of the investors authentic statements.
    (IX) other documents required by the China Banking Regulatory Commission. 18th opening banking regulatory Bureau received applications within 5 working days after completion of the data integrity review. Complete information on the application form and in accordance with the provisions of, the CBRC shall receive and notify the applicant in writing within 5 working days.
    Banking Board materials should be completed within 20 working days of the initial evaluation and forwarded to the China Banking Regulatory Commission. After the China Banking Regulatory Commission formally accepts applications for approval, should be made within 2 months of decision granted or not granted.
    Approved the establishment of money brokerage companies issued by the China Banking Regulatory Commission financial licenses and make an announcement; not to approve, and shall notify the applicant in writing and state the reasons.
    Applicants with financial license to the Administrative Department for industry and commerce registration, receive the business license before they can operate.
    Article 19th approved money brokers opened by the company since the date of business license in the 30th, shall be appointed by the China Banking Regulatory Commission notice on the media.
    20th money brokerage companies according to business needs, and examined and approved by the China Banking Regulatory Commission, you can set up branch offices in areas with a larger volume of business.
    Money brokerage firms which do not have legal personality, its civil liability borne by the money brokerage companies. 21st money brokerage companies establish branch, shall comply with the following conditions:

    (A) is considered to be business development needs.
    (B) money brokerage companies to establish more than 2 years, and registered capital of no less than 50 million Yuan.
    (C) money brokerage companies operating in good condition, for 2 consecutive years.
    (D) money brokerage companies in the past 2 years, no illegal or irregular operation records.
    22nd money brokerage companies branch shall satisfy the following conditions: (a) comply with the minimum amount of working capital as provided herein.
    (B) meet the qualification requirements prescribed by the Banking Regulatory Commission, China's senior managers.
    (C) have a sound business operations, internal control, risk management and accountability systems.
    (D) meet the requirements of the business premises, safety measures and other facilities related to the business.
    (E) the China Banking Regulatory Commission other prudent requirements as specified by. 23rd money brokerage branch of capital shall not be less than RMB 10 million.
    Money brokerage companies allocate each branch's operating capital total cannot exceed the registered capital of 50%.
    24th money brokerage companies to apply for establishing branch, shall be filed with the China Banking Regulatory Commission shall submit the following documents and information: (a) the application, which includes the name of the branch to be established, location, working capital, business scope and service objects, and so on.
    (B) the feasibility study report, including the business of the proposed branch prediction, as well as medium-and long-term development plans, and so on.
    (C) money brokerage companies on application for the establishment of the branch of the Board resolutions, resolutions of the business of the proposed branch to manage authorization.
    (D) the money brokers Association.
    (E) money broking company business license (photocopy) or legal business opening certificate (copy).
    (F) the basic situation of money brokerage companies, and by a qualified accounting firm for the last 2 years of financial statements.
    (VII) the money broker application documents issued by the statement of the legal representative of the company.
    (H) other information required by the China Banking Regulatory Commission.
    25th proposed currency brokerage subsidiaries of the applicant shall prepare before the expiration or extended before expiry, apply for business commencement to the China Banking Regulatory Commission, and submit the following documents and information: (a) on completion of the preparation report and application for business commencement.
    (B) statutory capital verification certificate of capital verification certificate issued by the administrative authorities for industry and Commerce approved and registered as the proposed name on the book.
    (C) the proposed senior management personnel names and detailed resumes and qualification documents.
    (D) the proposed business rules and procedures and internal control system.
    (E) report of the business premises, safety testing of equipment and systems.
    (Vi) the money broker application documents issued by the statement of the legal representative of the company.
    (VII) other documents required by the China Banking Regulatory Commission, information.
    26th branch approved the establishment of money brokerage companies, the China Banking Regulatory Commission issued a financial license and make an announcement, with financial license to the Administrative Department for industry and commerce registration, business licenses, to be opened.
    27th approved the establishment of money brokerage companies and their subsidiaries from the date of business license, 6 months without good reason is not opened or closed for more than 6 months in a row without good reason after opening, the China Banking Regulatory Commission shall revoke their financial licenses and make an announcement. 28th money brokerage companies based on business management needs, you can compare regions set up a representative office.
    Applying for establishing a representative office shall submit the following materials to the China Banking Regulatory Commission: (a) signed by the legal representative of a money broker application for Chairman of the China Banking Regulatory Commission.
    (B) money broking company business license (photocopy) or legal business opening certificate (copy).
    (C) the money brokers Association.
    (D) the basic situation of money brokerage companies, and by a qualified accounting firm for the last 2 years of financial statements.
    (V) the identity of the representative to be appointed, proof of education, resume and signed by the person to be appointed has no adverse record statement.
    (F) by the legal representative of a money broker or his appointed Chief Representative of a power of attorney signed by the authorized signature.
    (G) other information required by the China Banking Regulatory Commission.
    Representative offices shall not be business of money brokerage companies, restricted to business promotion, customer service, debt collection, and collection of information, feedback and other related work.
    29th money brokerage companies of the China Banking Regulatory Commission Chairman, Vice Chairman, General Manager and Vice President, Director, financial Director, General Manager in the implementation of vocational qualification management, according to the China Banking Regulatory Commission's provisions on vocational qualification management.
    Article 30th senior managers of money brokerage companies shall not concurrently hold posts of China representative offices.
    31st money brokerage companies in any of the following circumstances occur shall be approved by the China Banking Regulatory Commission, and industrial and commercial administrative organs for registration under the law: (a) the Division, merger or dissolution of the company.
    (B) change the name.
    (C) amend the company's Charter.
    (D) adjusting registered capital.
    (E) change of equity structure.
    (F) change of business scope.
    (G) change of business premises.
    (VIII) replacement of senior management.
    Money brokerage companies branch changes its name, working capital, place of business, scope of business or change of senior management staff, should be left to currency brokerage firm approval of the China Banking Regulatory Commission, and industrial and commercial administrative organs for registration under the law.
    Chapter III business scope article 32nd money brokerage companies and their subsidiaries are limited to providing brokerage services to the domestic and foreign financial institutions may not engage in any financial products for its business.
    33rd money brokerage companies and their subsidiaries in accordance with the China Banking Regulatory Commission approved the operation of business, all or part of the business may have the following: (a) domestic and offshore foreign exchange market transactions, (ii) domestic and offshore money market transactions, (iii) domestic and overseas bond markets transactions; (iv) domestic and offshore derivative product transactions; (v) other business approved by the China Banking Regulatory Commission.
    Article 34th company and its subsidiaries engaged in the stock exchange money brokers business broker services, needed by the China Securities Regulatory Commission for approval.
    Fourth chapter management and supervision article 35th money brokerage companies must follow justice, principles of fairness, integrity, and confidentiality to clients operating in accordance with law.
    Article 36th money brokerage companies in cash assets or the equivalent Treasury capital must be at least 3 months in the form of operating expenses.
    37th money brokerage firms may not use capital investment in fixed assets of non-use.
    Article 38th currency brokerage firm in accordance with the principle of prudent operation, set the business rules of the company, to establish comprehensive and effective risk management processes and internal control system.
    39th money brokerage firms should be set up on the Board of Directors is responsible for risk management, business Audit Division develop business risk control and audit system, periodic reporting to the Board of Directors each year, and report to the China Banking Regulatory Commission. 40th money brokerage companies must establish an independent compliance function, equipped with specialized personnel for compliance risk management.
    Company's Board of Directors is responsible for overseeing the compliance risk management, approval of compliance policies, monitor effective implementation of senior management.
    Compliance divisions should actively take the initiative to identify, a written description, evaluation, and reporting on compliance risk associated with currency brokerage activities, including new products, new business development, new customer relationship building as well as significant changes in the customer relationship arising out of compliance risk.
    41st money brokerage firms to absorb new customers must strictly review the registration documents and the financial situation of the customer, after being recognized as eligible participants in wholesale financial markets to its brokerage business.
    42nd monetary brokerage must be qualification for practitioners, and strictly abide by the money brokers in China conduct of employees, all front and back office employees must go through the appropriate professional training. Article 43rd money brokerage firms must risk monitoring throughout the entire process of trading, trading, back at the front desk to confirm the strict separation, front and back head shall not concurrently hold, must establish and strictly enforce the independent cross-checking systems to control operational risk.
    Money brokerage companies must establish effective emergency management mechanism of transaction process in all types of operational risk that may arise.
    44th money brokerage companies should withdraw a certain percentage of the annual profit risk fund, to compensate for the losses that may occur in the operation.
    Article 45th non-licensed by the customer, money brokerage firms during the transactions shall not divulge to third parties information about clients, except as otherwise provided by laws and regulations.
    Article 46th currency brokers should ensure full and normal operation of the facility, to ensure smooth transactions and the integrity and security of information. 47th money brokerage companies must install recording devices in the trading system and are equipped with Internet and fax facilities to record the trade transaction process, the background of a broker confirmation and payment of commissions and other business activities. Conversations about trading for at least 3 months should be retained, and other transaction information such as transaction documents should be retained at least 10 years. If a transaction is contested and data retention periods exceeds the transaction information is still not resolved, then the conversation record transaction information should be retained at least until the dispute is resolved.

    48th money brokerage companies should implement the relevant financial and accounting system in financial enterprises.
    Money brokerage companies should be required to prepare and submit to the China Banking Regulatory Commission the balance sheet, income statement, cash flow statement, such as a complete accounting statements, non-spot supervision reports and other reports required by the China Banking Regulatory Commission.
    Money brokerage companies shall not provide false financial accounting reports or concealing important facts.
    49th money broker company shall establish a system of external audit on a regular basis, should employ only qualified CPA firm's audit, and within 3 months after the end of each fiscal year, the annual audit report submitted to the China Banking Regulatory Commission.
    50th money brokerage companies should regularly report to the local agency of the China Banking Regulatory Commission money broker traffic statistics report format shall be separately formulated by the China Banking Regulatory Commission.
    51st money brokerage companies in the following major issues have to be in 3 working days report within the local agency of the China Banking Regulatory Commission: (a) the financial status and business activities a major problem, including the emergence of unusual transactions, significant trade disputes.
    (B) controlling shareholder address change of registration or incorporation, its registered capital.
    (C) change of controlling shareholder restructuring, equity or mainly responsible for the change.
    (D) significant changes in the business of controlling shareholders.
    (E) other operation of money brokerage companies likely to have an impact, to the China Banking Regulatory Commission report on major issues.
    52nd money brokerage firms brokerage run by all kinds of new varieties should be timely reported to the China Banking Regulatory Commission and its local agencies.
    53rd according to the prudential supervision of China Banking Regulatory Commission requirements, right, in accordance with the relevant procedures and requirements, the following measures of money brokerage companies or relevant professional institution commissioned to carry out an on-site inspection: (a) check into money brokerage companies.
    (B) staff members ask money brokerage companies, requiring them to explain matters relating to check.
    (C) consult and copy money brokerage companies and checking documents and materials relating to the matter, may be transferred, concealment or destruction of documents and materials to be sealed.
    (Iv) checking money brokerage firms use computer systems for managing business data.
    54th of money brokerage companies is one of the following conditions occurs, depending on the circumstances, the China Banking Regulatory Commission ordered to clean up: (a) current year losses more than the registered capital of the 50% or 30% of the registered capital of the accumulated losses of more than 3 consecutive years.
    (B) in payment difficulties.
    (C) other significant operational risks, the China Banking Regulatory Commission deems necessary.
    (D) the situation of China's Banking Regulatory Commission deems necessary.
    55th China Banking Regulatory Commission ordered monetary brokerage firms after reorganization, currency brokers to take the following measures: (a) order to change directors, senior executives or restrict their rights.
    (B) suspend part of their operations or to suspend all business.
    (C) requests within the time stipulated in the capital increase.
    (D) ordering the controlling shareholders to transfer their stock right or restricting its shareholders rights.
    (E) restrictions on dividends and other income.
    (Vi) restrict the transfer of assets.
    (VII) cancelled the financial license of money brokerage companies.
    (H) other measures of China Banking Regulatory Commission deems necessary.
    56th money brokerage firms after reorganization, subject to the following conditions, by the China Banking Regulatory Commission approved the end reorganizations: (a) capacity to pay was restored.
    (B) the losses be made up.
    (C) the major operational risks are addressed.
    (D) measures of China Banking Regulatory Commission take action has been implemented.
    57th money broking company reorganization period of not more than 1 year, fails to achieve the goal of reorganization, according to law market. Article 58th currency brokerage may establish a trade association, and self-regulation. Money brokerage firms brokerage personnel shall follow the practice of self-discipline organization norms.
    Industry self-regulatory organization's activities shall be governed by the China Banking Regulatory Commission guidance and supervision.
    The fifth chapter legal liability article 59th of money brokerage companies in any of the following acts, China Banking Regulatory Commission in accordance with the People's Republic of China Banking Regulatory Act, the financial penalties for punishment for violation constitutes a crime, criminal responsibility shall be investigated according to law: (a) beyond the approved scope of business.
    (B) providing false information or concealing important facts reports, statements and other documents; or failing to provide required reports, statements and other documents.
    (C) without the approval of the China Banking Regulatory Commission arbitrarily set up branches.
    (D) unauthorized alterations of the name, registered capital, equity structure, place and senior managers.
    (E) a false capital contribution or withdrawal of capital.
    (F) seriously violates the principle of prudent operation.
    (VII) is not in accordance with the regulations for information disclosure.
    (H) be contrary to the principles of fairness, confidentiality.
    (I) refuses or obstructs the inspection according to law. 60th article currency brokers company violation this approach provides, China banking supervision Management Committee except according to chapter 59th article of about provides give punishment outside, can ordered currency brokers company on directly is responsible for of Director, and senior management personnel and other directly responsibility personnel give disciplinary; yet constitute crime of, at 50,000 yuan above 500,000 following fine; plot serious of, can canceled the company director, and senior management personnel 1-10 years until lifelong of financial institutions senior management personnel served qualification,
    Or prohibit the money brokers, who work in the financial sector.
    61st without the approval of the China Banking Regulatory Commission, without authorization, used in the name of "money broker" and other shows that words in the money brokering business, the China Banking Regulatory Commission ordered to correct, and a corresponding fine. 62nd without the approval of the China Banking Regulatory Commission, any establishment of money brokerage companies or unauthorized money broking businesses, the China Banking Regulatory Commission banned. Constitute a crime, to hand over their responsibilities to the judiciary criminal responsibility shall be investigated according to law.
    Does not constitute a crime, the confiscation of the China Banking Regulatory Commission, and illicitly acquired more than 1 time fined not more than 5 times; no ill-gotten gains, the China Banking Regulatory Commission ordered corrective action, and to a fine of up to 100,000 yuan and 500,000 yuan.
    Sixth chapter supplementary articles article 63rd Hong Kong S.A.R., and Macau S.A.R. and Taiwan area of money brokerage companies as a foreign investor, applying for the establishment of money brokerage companies in accordance with the measures implemented.
    64th explain these measures by the China Banking Regulatory Commission. 65th these measures shall come into force on September 1, 2005.