Futures Company Supervision And Administration

Original Language Title: 期货公司监督管理办法

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Futures company supervision and administration

    (October 29, 2014, the China Securities Regulatory Commission announced come into force on the date of promulgation, 110th) Chapter I General provisions

    First in order to standardize the futures company business activities, strengthen the supervision and management of the futures company, protect customer interests, promoting the construction of the futures market, in accordance with the company law and the laws and administrative regulations on futures trading management regulations, these measures are formulated.

    Article in the People's Republic of China established within the territory of the futures company, these measures shall apply.

    Third futures company shall abide by the laws, administrative regulations, and the China Securities Regulatory Commission (hereinafter referred to as the China Securities Regulatory Commission), and prudence to prevent conflicts of interest, meet its fiduciary duty to customers.

    Fourth futures company shareholders and actual controllers and other associated parties shall not abuse the right, shall occupy the futures company assets or misappropriation of clients ' assets, shall not infringe the futures company, customer's legal rights.

Fifth China Securities Regulatory Commission and its agencies shall supervise and manage the futures companies and their branches.

China futures industry association, the rules of the Futures Exchange along the self-discipline to self-regulation of futures companies.

    Futures margin security deposit monitor shall administer its customer deposit security implementation monitoring.

    Chapter II establishment, change and business termination

Sixth application for establishment of the futures company, should adhere to the 16th article of the regulations on futures trading conditions, shall meet the following conditions:

(A) futures practitioners qualifications no fewer than 15 people;

    (B) the qualifications of senior managers of not less than 3 persons.

Seventh 5% more of the equity interest of shareholders is a legal entity or other organization, subject to the following conditions:

(A) the paid-up capital and are not less than 30 million yuan of net assets;

(B) the net assets of not less than 50% per cent of the paid-up capital and net assets contingent liabilities less than 50%, there is no significant uncertainty impact on the financial position of other risks;

(C) no large amount of overdue debt;

(D) almost 3 years not due to gross violations of administrative punishment or criminal penalty;

(E) no authority for alleged serious violation of investigation or enforcement measures;

(Vi) for nearly 3 years, as the company (including financial institutions) shareholders or the actual controller, no abuse of shareholders ' rights, bad faith to avoid shareholder obligations;

    (VII) does not exist another not identified by CSRC based on prudent regulatory principles for holding future ownership situation.

    Over 5% the futures company owned by article eighth individual shareholder should be consistent with the approach the seventh paragraph (iii) to (VII) provision of conditions, and the personal financial assets of not less than 30 million Yuan.

Nineth holding futures company 5% more of the equity interest of outside shareholders, should adhere to the provisions of article seventh condition, shall satisfy the following conditions:

(A) established under the laws of the host country or region, the legitimate existence of financial institutions;

(B) the nearly 3-year financial targets and monitoring indicators in line with national or regional laws and regulatory requirements;

(C) the futures of the host country or region has a sound legal and regulatory systems, their futures with the Chinese securities regulatory Commission signed a memorandum of regulatory cooperation, and maintain effective regulatory cooperation;

(D) the futures company or have an interest in foreign investment, the cumulative (including direct and indirect holding) must not exceed China's futures industry foreign or Hong Kong S.A.R., and Macau S.A.R. and Taiwan's commitment to open.

    Foreign shareholders shall be made in freely convertible currencies or lawfully acquired RMB funding.

    Tenth futures company affiliated shareholders the shareholding of up to 5%, holding the largest shareholder shall comply with the conditions as set forth in the seventh to Nineth herein.

11th company applying for the establishment of futures, following application materials should be submitted to the China Securities Regulatory Commission:

(A) the application;

(B) the draft articles;

(C) the business plans;

(D) the list of sponsors, its audit report or certificate of individual financial assets;

(E) the appointment of senior managers and practitioners in the name list, resumes and relevant certificates;

(F) development of the futures business system, internal control system and risk management system of text;

(G) site, equipment, financial documents;

(H) the legal opinion issued by a law firm;

    (IX) other materials prescribed by the CSRC.

    The 12th foreign ownership of equity futures company, shall, in accordance with provisions of laws and administrative regulations, apply to the commercial Administrative Department of the State Council to handle foreign-invested Enterprise approval certificate, and apply to the Foreign Exchange Management Department foreign exchange registration, opening the capital account and related financial foreign exchange settlement and purchase procedures. 13th future companies established in accordance with this approach, according to law to engage in commodity futures brokerage business; finance outside futures brokers, futures brokers, futures investment consultation, shall obtain the relevant qualification.

In the asset management business, it shall be registered.

    Futures firm approved to engage in other business stipulated in the China Securities Regulatory Commission.

14th futures company eligibility criteria for financial futures brokerage business, shall meet the following conditions:

(A) apply before 2 months of risk supervision indicators continue to meet the prescribed standards;

(B) having a sound corporate governance, risk management and internal control systems, and their effective implementation;

(C) in line with China's regulations on securities and Futures margin security custody monitoring;

(D) the operational facilities and technical system in conformity with the relevant technical specifications and in good operating condition;

(E) the senior management are not subject to criminal penalties in the past 2 years, not by the administrative penalties for illegal business operations, without bad credit records, and there is no authority for allegedly illegal business operations survey situations;

(Vi) there is no agency of the China Securities Regulatory Commission and the 56th article of the regulations on futures trading, 57th supervisory measures provided for in article;

(G) there is no authority to initiate an investigation for suspected illegal situations; (H) the violation within the last 2 years has not subjected to criminal punishment or administrative punishment.

Controlling shareholders and actual controllers changed the futures company, senior management changes over 50%, bear the responsibility for such senior managers and business owners were no longer in Office and domicile of the rectification is completed and the futures company Agency of the China Securities Regulatory Commission acceptance, are not subject to this restriction;

(I) the controlling shareholder or individual financial assets is not less than 30 million yuan of net assets;

    (J) other conditions stipulated by the CSRC based on prudent regulatory principles.

15th futures company eligibility criteria for financial futures brokerage business, following application materials should be submitted to the China Securities Regulatory Commission:

(A) the application;

(B) stamped with the seal of the company's business license and copy of business license;

(C) the shareholders ' meeting or the Board of Directors resolution file;

(D) for 2 months prior risk monitoring reports;

(E) the system of corporate governance, risk management and internal control system performance reports;

(F) operational facilities and technical system health report;

(G) the controlling shareholder with securities and futures-related business qualifications one recent audit of financial report or individual financial assets;

(H) the legal opinion issued by a law firm;

(IX) if there exists this way 14th section (VIII) requirement, should also provide future modification of the domicile of the company issued by the local Office of the China Securities Regulatory Commission acceptance of submissions;

    (J) the other application materials under the China Securities Regulatory Commission.

    16th futures companies to apply for overseas futures brokers, futures investment consultation and approval of the other business conditions, otherwise specified by the CSRC.

17th futures company of the change of ownership in any of the following circumstances shall be approved by the China Securities Regulatory Commission:

(A) change of controlling shareholder, the largest shareholder;

(B) linked to a single shareholder or shareholders equity ratio increased to 100%;

(C) a single shareholder's stake or associated relationship between total shareholder equity ratio increased to over 5%, and involve foreign shareholders.

    Except as provided in the preceding paragraph, a futures company a single shareholder's stake or associated relationship between total shareholders equity ratio increased to 5% per cent, should be approved by the domicile of the futures company Agency of the China Securities Regulatory Commission.

18th, futures companies change of ownership with the way 17th of the circumstances listed in article, subject to the following conditions:

(A) the proposed change of ownership does not exist to be sealed up or frozen;

(B) future cross shareholding does not exist between the company and the shareholders, the futures company does not exist for equity the assignee to provide any form of financial support;

    (C) relates to the shareholders in accordance with the conditions provided for in article seventh to tenth.

19th futures companies change ownership, 17th of the circumstances listed in these measures, and shall submit the following application materials:

(A) the application;

(B) the resolution on the change of ownership documents;

(C) share transfer or change of investment contracts, as well as other waiver of pre-emption rights of shareholders of the limited liability company's undertaking;

(D) basic case involved shareholder reports, change futures after the shareholders ' equity of the company background and futures companies on whether the shareholders after the change there relationship, whether the futures company equity the assignee to provide any form of financial support information;

(E) involving shareholders ' shareholders ' meeting, Board of directors or other decision-making bodies to make the relevant resolutions;

(F) audit reports involving the shareholders or personal financial assets;

(VII) legal opinions issued by the law firm;

(VIII) other materials prescribed by the CSRC.

The futures company a single foreign shareholder's stake or associated relationship outside of total shareholders equity ratio increased to 5% above, shall also submit the following application materials:

(A) the regulation of the foreign shareholders, business license or registration certificate and the related qualification certificate; (B) the foreign shareholders of the country or region in which the regulatory agencies or outside agency approved by the China Securities Regulatory Commission issued on their conformity with the way the seventh paragraph (d), (e) and paragraph Nineth part (b) of conditions of cover.
Futures company ownership changes outside of the 17th provided these measures shall complete the business within 5 business days from the date of the change of the registration agency of the domicile of the company the China Securities Regulatory Commission reported the following written information:

(A) change 5% the following equity shareholder reports;

(B) equity the assignee to relevant background material;

(C) equity background maps;

(Iv) equity change related documents;

(V), the granting of the registration document, a photocopy of the company's articles;

    (Vi) other materials prescribed by the CSRC. 20th futures company changes its legal representative, the legal representative should have the qualifications to be appointed.

Future domicile of the company shall provide the Agency of the China Securities Regulatory Commission to submit the following application materials:

(A) the application;

(B) the resolution on the change of legal representative of the file;

(C) the qualification certificate of the legal representative to be appointed;

    (D) other material provisions of the CSRC. 21st futures company changes its domicile, should handle clients ' assets, to be moved to shelters and facilities shall comply with the operational requirements to be used.

Futures companies in the China Securities Regulatory Commission jurisdiction of different agencies to change their place of residence, and shall comply with the following conditions:

(A) sustainable management rules;

(B) nearly 2 years due to major violations subject to administrative punishments or criminal penalty;

    (C) other conditions stipulated by the CSRC based on prudent regulatory principles.

22nd futures companies change domicile shall be made to the proposed new agency of the China Securities Regulatory Commission to submit the following application materials:

(A) the application;

(B) the proposed change of home ownership or use rights certificates and materials related to fire certificates;

(C) report on the handling of clients ' assets;

    (D) other material provisions of the CSRC.

23rd futures companies can set up business Department, branch and other branches.

Futures company applying for the establishment of a branch shall satisfy the following conditions:

(A) the sound corporate governance and internal control system in accordance with the relevant provisions and their effective implementation;

(B) for 3 months prior to meet standards of risk supervision indicators;

(C) comply with the customer asset protection and security futures margin deposit monitoring requirements;

(D) not authority for allegedly illegal business operations survey, almost 1 year without illegal operations subject to administrative penalties or criminal penalty;

(E) meets the needs of business development branch to establish programmes;

    (Vi) other conditions stipulated by the CSRC based on prudent regulatory principles.

24th article: the futures company applying for the establishment of a branch shall be made to the company location Agency of the China Securities Regulatory Commission to submit the following application materials:

(A) the application;

(B) the proposed resolution branch files;

(C) report on the corporate governance and internal control system;

(D) the application before 3 months risk monitoring reports;

(E) branches established programmes;

(Vi) other materials prescribed by the CSRC.

    Futures company at the time of submission of application materials, application materials should be also reported plans to establish a branch location of the Agency of the China Securities Regulatory Commission.

25th futures companies change the Branch Office business premises should be proper handling of customer assets, intends to move into the business premises and facilities to be used should meet the needs of your business.

    Futures company in these measures change the Branch Office business premises only at the China Securities Regulatory Commission change its place of business within the local Office of the same area.

Article 26th futures company branches, should be properly handled the branch clients ' assets, the settlement of branch operations and termination of business activities.

Futures companies should be submitted to the local Office of the domicile of the branch of China Securities Regulatory Commission the following application materials:

(A) the application;

(B) the resolution intends to terminate the branches file;

(C) regarding the handling of customer assets, settlement and termination of activities of the branch operations reports;

    (D) other material provisions of the CSRC.

27th futures company applying for the establishment, acquisition or equity participation in overseas futures business institutions, subject to the following conditions:

(A) apply before 6 months in line with standards of risk supervision indicators;

(B) within the last 2 years not because of significant violations subject to administrative punishments or criminal penalty;

(C) the foreign institution with a complete management system, able to effectively isolate the risk;

(D) plans to establish, acquire or shareholding institutions located in countries or regions Futures has signed a memorandum of regulatory cooperation with the China Securities Regulatory Commission;

    (V) other conditions stipulated by the CSRC based on prudent regulatory principles.

28th futures company applying for the establishment, acquisition or equity participation in overseas futures business institutions, following application materials should be submitted to the China Securities Regulatory Commission:

(A) the application;

(B) the proposed establishment, acquisitions or equity participation in overseas futures file resolution of such undertakings;

(C) apply before 6 months risk monitoring reports;

(D) foreign institutional management system of text;

(E) securities and futures-related business qualified accounting firms audited financial reports of the previous year; the date of filing in the second half, audited half-yearly financial report should also be provided;

(Vi) legal opinions issued by the law firm;

    (VII) other materials prescribed by the CSRC.

    29th futures company applying for the establishment, acquisition or equity participation in overseas futures business institutions, it should be in accordance with the relevant provisions of the administration of foreign exchange, foreign exchange registration, funds transfer and foreign exchange settlement and purchase procedures.

Article 30th futures companies due to force majeure and other legitimate reason to apply for closure, should handle clients ' assets, the return or transfer of customer. Futures companies resume operations, shall comply with the futures company continued operating rules.

    Closed after the expiry, the futures company fails to restart or not in compliance with operating rules, the China Securities Regulatory Commission in accordance with the regulations on futures trading first paragraph of the article 21st of the cancellation of its futures business license.

31st futures company closed down, following application materials should be submitted to the China Securities Regulatory Commission:

(A) the application;

(B) close file resolution;

(C) report on the handling of clients ' assets, disposal or return customer;

    (D) other material provisions of the CSRC.

32nd futures company was revoked business licenses of all futures, should handle clients ' assets, the settlement of the futures business Corporation continues to exist, it shall name, line of business, and the company's articles, such as business registration, on behalf of the surviving company shall not continue to futures companies engaged in business, its name must not have "Futures" or similar words.

    Futures company dissolution, bankruptcy, should be properly handled client assets in closing business.

    33rd futures company establishment, alteration, suspension, dissolution, bankruptcy, disbanded the futures business license or its branch establishment, alteration and termination of futures companies on the media should be designated by the CSRC notice. Article 34th future license of the company and its subsidiaries uniformly printed by the China Securities Regulatory Commission.

    Original or duplicate license is lost or destroyed, the futures company shall within 30 working days, in the China Securities Regulatory Commission declared void on designated media and published declarations apply to the China Securities Regulatory Commission again.

    Chapter corporate governance

    35th futures company shall in accordance with clear responsibility, strengthening the principle of checks and balances, strengthen risk management, establish and improve corporate governance.

Article 36th futures and its controlling shareholder, actual control of the company in business, personnel, assets, financial and other aspects should be strictly separated, independent, independent accounting.

According to law by the futures company shareholders ' meeting or the Board of Directors resolution, futures company's controlling shareholder, actual control of futures companies not appointment and removal of Directors, supervisors and senior managers, or unlawfully interfere with future management activities.

    Futures to the shareholder, actual control of the company and its affiliates to provide services, shall not reduce the risk management requirements.

37th holding futures company 5% more of the equity interest of shareholders or the actual controller for any of the following circumstances shall, within 3 working days notify the futures company:

(A) holdings of futures companies are frozen, seized or enforced;

(B) pledge holding futures company;

(C) decided to transfer the futures company;

(D) does not exercise the shareholder's rights or obligations shareholders properly may result in future corporate governance of major defects;

(E) investigation into alleged serious violation of authority or enforcement measures;

(Vi) due to gross violations subject to administrative punishments or criminal penalty;

(G) change of name;

(VIII) significant assets, merger, Division or debt restructuring;

(IX), managed by rectification, cancellation, took over regulatory measures such as, or into dissolution, bankruptcy, closing the program;

(X) others may affect the futures ownership change or ongoing cases.

Future 5% more of the equity interest of shareholders of the company as provided in the preceding paragraph, the futures company 3 working days from the date of receipt of the notification within the domicile of the futures company Agency of the China Securities Regulatory Commission report.

    Actual control of the futures company, paragraph (e) to (I) the circumstances listed, the futures company shall, within 3 working days of receipt of the notification shelter agencies report to the CSRC.

38th futures companies have one of the following circumstances shall promptly notify all shareholders or notice, and to report to the home agency of the China Securities Regulatory Commission:

(A) the company or its directors, supervisors and senior management on suspicion of violation of the right to initiate an investigation or enforcement measures;

(B) the Corporation or its directors, supervisors, senior management due to illegal acts subject to administrative punishments or criminal penalty;

(C) the risk supervision indicators do not meet the prescribed standards;

(D) the significant overdraft in the customer, dressed in warehouse, may affect the future sustainable management;

(E) the dramatic events that occurred, the futures company or clients have or might have a significant adverse effect;

(Vi) other circumstances that may affect the futures company a going concern. The China Securities Regulatory Commission and its agencies of futures companies and its affiliates taken 56th article of the regulations on futures trading, fourth paragraph or regulatory measures or administrative penalties stipulated in the 57th, the futures company shall be notified in writing to all shareholders or by notice.
    39th futures company shareholders ' meeting shall be in accordance with the company law and the articles of incorporation, consideration and vote on the matter within the terms of reference. Shareholders ' meeting shall convene at least one meeting per year.

    Futures shares held by the shareholders of the company shall be in proportion to the amount or proportion of exercising the right to vote.

40th futures company shall establish a Board of Directors and in accordance with the provisions of the company law Board of supervisors and supervisors, to protect the Board of supervisors and supervisors of the company operating right.

    Futures company may set up independent Director, futures companies other than the futures company as the Board of Directors, the independent directors shall not post, shall not be made and the futures company that may block its independence and objective judgment.

41st Futures should be a Chief Risk Officer of the company, management of the futures company in compliance, risk management, monitoring and inspection.

Chief Risk Officer, suspected use and misappropriation of customer margin violation or possible risks, should be immediately to the home agency of the China Securities Regulatory Commission and the report of the Board of Directors of the company.

    The futures company intends to dismiss a Chief Risk Officer, should have warranted, and report to the home agency of the China Securities Regulatory Commission. 42nd futures company's Board Chairman, General Manager and Chief Risk Officer, relationship exists between near relatives.

    Chairman and General Manager, not by one person. 43rd reasonable in futures companies set up business units and their functions, establishing a responsibility system, incompatible positions should be separated.

Trading and settlement, financial transactions should be handled separately by different departments and personnel.

Futures company shall establish a risk management department or position, business risk management and control of futures companies.

    Futures company shall establish a compliance audit department or post, review and audit the futures company's management and legal compliance.

44th futures companies should be centralized and unified management of branches, not with another joint venture, cooperative management branches, branches may not be contracting, leasing or delegated management.

Subsidiaries in businesses which are beyond the scope of business of futures company, and shall comply with the China Securities Regulatory Commission on the relevant business requirements.

    Futures company shall comply with the requirements imposed on the sales department clearing unity, unified risk management and capital allocation, financial management and accounting.

    45th futures companies can comply with the requirements, using its own funds invested in equities, investment funds, bonds and other financial assets, and business-related equity and other business stipulated in the China Securities Regulatory Commission, but shall not engage in prohibited under the regulations on futures trading business.

    The fourth chapter of business rules

    Section I General provisions

    Article 46th futures companies should be established and effective implementation of the risk management, internal control, futures margin custody business systems and processes, effective separation between different business risk and ensure safety and security of clients ' assets.

47th a futures investor corporations shall, in accordance with the provisions of appropriate management systems, establish norms of practice and internal accountability mechanisms, understand customers ' economic strength, expertise and risk appetite, investment experience, and so on, carefully assess the client's risk tolerance, provided commensurate with the results of a product or service.

Futures companies should be comprehensive and objective introduction to the customer-related laws and regulations, rules of business, product or service features, fully disclose the risks, and in accordance with the terms of the contract, to provide information associated with the transaction, information shall not be fraudulent or misleading customers.

    Futures companies should fully understand and evaluate clients risk tolerance, strengthen the management of customers.

48th futures companies should be in a place of public business processes.

    Futures companies should provide employees qualification and other information available to customers, and the company's Web site and customers can place prompted the China futures industry association website.

    49th futures companies should have to comply with industry standards and its own business development information systems, development of information technology management system, in accordance with the provisions of the information technology department or post, protection of information systems security operation.

    50th futures companies should assume the primary responsibility of investor complaints, establish and perfect the customer complaint handling system, public complaints handling process, proper handling of customer complaints and disputes with customers.

51st futures company shall set up a data backup system for trading, clearing, back up data such as financial management. Futures company shall keep proper customer information apart from the survey and inspection, customers should be kept confidential.

    Customer data retained for periods of not less than 20 years.

    Section II of the futures brokerage business

52nd futures company may accept the following units and individuals entrusted to carry out futures trading:

(A) the State organs and institutions;

(B) the China Securities Regulatory Commission and its agencies, the Futures Exchange, futures margin security custody monitoring agency, the China futures industry association staff members and their spouses;

(C) the futures company staff members and their spouses;

(D) barred from securities and futures markets;

(E) failed to provide account opening documentation units and individuals;

    (F) the provisions of the CSRC's other units and individuals shall not engage in futures trading.

    53rd customer opening an account, shall issue a valid unit, personal identification or other supporting documents.

54th futures company for customers before opening a futures account, should be presented to the customer on the risk of futures trading instruction, signed by the customer and enter into a futures contract.

    The futures contract, the guidelines and the risks of futures trading instructions developed by the China Futures Association.

55th customer via written, telephones, computers, the Internet and other means of issuing orders. Futures orders management system should be established and agreed with the customer on the means and procedures. Futures issued by the company shall, in accordance with customer-specific instruction, shall not, without the customer or not according to customer-specific content, unauthorized futures trading.

Futures company employees shall not accept has not been legally established place of business in private client futures trading. Issued orders in writing, the customer shall fill out the written order form; issued orders by telephone, the futures company shall sound; instructions issued to computers, the Internet and other means of trading, futures companies should be saved in an appropriate manner.

    Instructions given by means of the Internet trading, the futures company shall note the Internet trading risks.

56th futures company shall, before passing orders to customer accounts and verify position.

    Future company shall be passed in accordance with the principle of giving priority to customer orders. 57th futures company shall provide customers with transaction settlement after daily settlement reports and prompts customers can query through a futures margin security custody monitoring agencies.

Customers should be made according to the futures contract to confirm the transaction settlement reports. Customer transaction billing disagrees with the report, shall, within the time the futures contract in written form, the futures company verified shall, within the appointed time.

    Customers are not objections within the agreed time, seen as confirmation of the transaction settlement report.

    Article 58th of futures companies fault processing business rules should be developed and implemented. 59th futures company shall comply with the requirements for customer applications, cancellation transaction code. Customers trust relationship ended and futures companies should go through the cancellation procedures.

    Customer futures company may be cancelled funds account, transaction codes to lend to others.

    60th futures company in accordance with provisions of article entrust other institutions or entrusted to other organizations engaged in intermediary business.

    Section III futures investment advisory business

    61st futures company can legally engage in futures investment consultancy business, being entrusted by clients, to provide risk management consulting, research analysis, transaction advisory services.

    62nd futures companies engaged in investment advisory business, signed a service contract with the customer, expressly agreed upon services, standards and ways of dealing with disputes and other matters.

63rd futures companies and their employees engaged in futures investment advisory business, shall not be any of the following acts:

(A) profit guarantee to the customer;

(B) false information, rumours or inside information as the basis to provide customers with investment advisory services;

(C) the price change or market developments make decisive judgments;

(D) provides investment advice to clients to seek illegitimate benefits;

(E) the use of futures investment advisory activities to disseminate false or misleading information;

(Vi) collect remuneration in his own name;

    (G) laws, administrative regulations and other acts prohibited by the CSRC.

    Fourth quarter asset management business 64th futures company can legally engage in the asset management business, accept the consignment of client, customer assets for investment.

    Investment income enjoyed by the customer, losses borne by the customer.

    65th futures companies in the asset management business, asset management contract with the customer, services were provided through a special account.

66th futures company can legally engage in asset management business of the following:

(A) for a single customer asset management business;

    (B) for a specific number of clients for the asset management business.

67th asset management investments include:

(A) futures, options and other derivative products;

(B) stocks, bonds, investment funds, collective asset management plan, Central Bank bills, short-term, asset-backed securities;

    (C) other investments approved by the China Securities Regulatory Commission.

68th futures companies and their employees engaged in the asset management business, shall not be any of the following acts:

(A) misled by fraudulent means or any other improper means, induced by the customer;

(B) guarantees to customers of their principal assets from loss or obtain a minimum revenue commitment;

(C) the acceptance of client's initial assets is lower than the minimum limit prescribed by the CSRC;

(Iv) use and misappropriation of client assets; (E) to transfer an asset management account for the purpose of gain or loss, which trade on different accounts, clients ' interest;
(F) to obtain commissions or other benefits for the purpose of conducting unnecessary transactions using customer's assets;

(VII) use of customer asset management for third parties to seek illegitimate interests, interests of transportation;

    (H) the laws, administrative regulations and other acts prohibited by the CSRC.

    The fifth chapter customer asset protection 69th of customer deposits and entrusted assets belonging to clients ' assets, to all customers. Customer equity Futures should be independent of company's own assets and management. Not due to customer's own debt or other circumstances as stipulated by laws, administrative regulations, shall not be sealed up or frozen, deduction or enforce customer assets.

    Futures company bankruptcy or liquidation, customer assets do not belong to the estate or the liquidation of property.

70th futures companies should be futures margin deposit Bank to open a margin account.

    Futures open, alter or rescind the futures margin accounts, should walk will futures margin security deposit monitor, record, and by providing assistance to customers to disclose account opening, change or cancellation.

71st customer should register with the futures company in my name for access to futures margin settlement account.

    Futures companies and customers should be made by filing the futures margin accounts and settlement account transfer access registration margin.

    72nd futures company depository of customer deposits should be fully stored in futures margin accounts and special settlement account for Futures Exchange, futures margin accounts is strictly prohibited and special settlement account for Futures Exchange store.

    73rd futures company shall, in accordance with the provisions of article submission to futures margin security custody monitoring agencies in a timely manner information.

    74th futures margin deposit bank security deposit is not required to futures margin monitoring agencies submit information, by the Futures Exchange to take self-regulatory measures or by the China Securities Regulatory Commission to take regulatory measures, administrative punishment, futures should be suspended in the depository bank to open a futures margin accounts, and Futures margin transferred to other eligible futures margin deposit Bank.

    75th futures companies should be in accordance with the rules of the Futures Exchange, deposit and settlement guarantees, reserves and maintain the minimum amount of settlement and other special funds to ensure customer trading.

76th except pursuant to the regulations on futures trading article 29th of transferred outside, no unit or individual is allowed to occupy, misappropriation of client deposits in any form.

In futures trading, the client defaults caused by insufficient margin, futures companies should be based on risk and own capital paid, no other customer deposits.

    Shall, in accordance with the provisions of the futures company, risk management and use of reserve and shall not be appropriated for other purposes.

    Supervision and administration of the sixth chapter

77th futures company shall comply with the requirements to submit annual reports, monthly reports, and other information.

Futures, the management of the legal representative of the company for directors, Chief Risk Officer, head of finance annual and monthly reports should be signed to confirm views or supervisors should review the annual report of the Supervisory Board and submit written comments; Director of futures companies will be expected to sign confirmation of the annual report.

    Futures company annual reports, monthly reports, signing officers shall ensure that the report is true, accurate and complete; disagrees with the content of the report, should indicate the opinions and reasons.

78th China Securities Regulatory Commission and its agencies may request the following institutions or individuals, submitted within the specified time limit and the futures company-related information:

(A) the futures company and its directors, supervisors and senior managers and other staff;

(B) the futures company shareholders and actual controllers or other associated personnel;

(C) the futures company, holding or share or actual control of the enterprise;

(D) for futures companies providing related services accounting firms, law firms, asset evaluation and other intermediary service organizations.

    Report, provide or disclose information, the information shall be true, accurate and complete, and may not have any false record, misleading statement or material omission.

    Over 5% the futures company owned by 79th shareholders and actual controllers or other associated personnel engaged in futures trading in futures, the futures company shall open an account within 5 working days from the date of the residence to the China Securities Regulatory Commission agency reported a bank account the situation and report transactions on a regular basis.

80th of the following issues occurs, future domicile of the company shall, within 5 working days on Agency of the China Securities Regulatory Commission a written report:

(A) the change of the company name, form and regulation;

(B) the 17th provided these measures other than equity or change of the registered capital;

(C) change the principal of the branch office or place of business;

(D) the termination of the business major resolutions, such as;

(E) the authority to initiate an investigation or enforcement measures;

(F) affect or may affect future business management, major events such as finances or the security of clients ' assets;

(G) other matters prescribed by the CSRC.

    Those matters involving the futures company branches, the futures company shall at the same time to the local Office of the domicile of the branch of China Securities Regulatory Commission a written report.

    81st futures companies to employ or dismiss accounting firms shall take a decision within 5 business days of shelter agencies report to the CSRC; dismissed the accounting firm shall state the reasons.

    82nd futures company shall, in accordance with the provisions of article published general information, history, branches, directors and supervisors information, senior management and employees information, company information, company credit records and other information required by the China Securities Regulatory Commission.

    83rd Chinese classification regulation the Commission may, in accordance with the provisions of futures companies.

84th China Securities Regulatory Commission and its agencies can be the futures company and its subsidiaries are regular or irregular spot inspection.

China Securities Regulatory Commission and its agencies shall conduct on-site inspection, inspectors shall be not less than 2, and shall provide proof of legal documents and letters, you can hire outside professional help if necessary check.

    The China Securities Regulatory Commission and its agencies on the futures subsidiary and Futures extended the company's controlling shareholder, actual control checks.

85th China Securities Regulatory Commission and its agencies to inspect futures companies and their branches, the right to take the following measures:

(A) ask the future staff of the company and its subsidiaries, asking them to explain to be checked, description;

(B) inspection and copying documents relevant to the issues under investigation, information;

(C) queries the futures customer asset accounts of the company and its subsidiaries;

    (D) check the future information system of the company and its subsidiaries, access to trading, clearing and financial data.

86th China Securities Regulatory Commission and its agencies view company there may be any of the following circumstances, commissioning an intermediary service organization may be required to carry out special audits, assessments or provide legal advice:

(A) the futures company annual reports, monthly report or interim report false record, misleading statements or material omissions;

(B) the violation of the protection of clients ' assets, futures margin security deposit monitoring requirements or provisions on administration of risk supervision indicators;

(C) other circumstances identified by CSRC based on prudent regulatory principles.

    Futures companies should cooperate with the intermediary service organization.

    87th futures company in violation of the relevant provisions of the measures, the China Securities Regulatory Commission and its agencies can adopt regulatory talks, letter of warning shall be ordered to correct, supervision and management measures.

88th futures companies or their affiliates shall have any of the following circumstances, the China Securities Regulatory Commission and its agencies under the administration of futures trading regulations stipulated in the 56th of regulatory measures:

(A) unsound corporate governance, Department or position settings there is a big defect, absence of key business personnel or failure to perform duties, may affect the future sustainable management;

(B) the business rules are not perfect or it is not effectively implemented, large defects such as risk management and internal control, management turmoil, which may affect the futures company continued operating or may damage the customer the legitimate rights and interests;

(C) does not comply with the protection of clients ' assets or futures margin security deposit monitoring requirements may affect the security of clients ' assets;

(D) not complying with the provisions of executive branch management, business management major risks or risks;

(V) does not provide for investors of appropriate management systems, there are greater risks or potential risks;

(F) in accordance with stipulations appointed or commissioned to offer intermediary services;

(G) the trading, clearing, or there were significant shortcomings in the financial information system, related data may cause distortion or damage to the customer the legitimate rights and interests;

(VIII) information systems do not comply with the requirements

(I) the shareholders and actual controllers or other associated persons suspension, a significant risk or suspected of serious violations, which may affect the future corporate governance or sustainable management;

(J) there were significant disputes, arbitration, litigation, may affect the going concern;

(11) in accordance with stipulations of information submitted, disclosed or submitted to, disclosure of the information is false record, misleading statement or material omission;

(12) other sustainable business rules or other risk situations.

    After corrective action still does not meet the operating conditions of the branch, agency of the China Securities Regulatory Commission shall have the right to shut down.

    89th shareholder, actual control of the futures company, other affiliates, for futures companies providing related services accounting firms, law firms, asset evaluation and other intermediary service organizations in violation of the rules, the China Securities Regulatory Commission and its agencies can adopt regulatory talks, letter of warning shall be ordered to correct, supervision and management measures.

90th futures company shareholder, actual control of associate or other person has any of the following circumstances, the China Securities Regulatory Commission and its agencies can order the rectification:

(A) occupation of future assets of the company;

(B) the immediate appointment and removal of Directors, supervisors and senior managers of futures companies, or unlawfully interfere with future management activities;

(C) the shareholders are not in proportion to the amount or proportion of shares to exercise the right to vote; (D) issued by or submitted, provided the materials, information or report false record, misleading statement or material omission.
Futures companies resulting from cases in the preceding paragraph does not comply with sustainability operating rules or operating risks, the China Securities Regulatory Commission and its agencies pursuant to the provisions of the regulations on futures trading article 56th ordering the controlling shareholders to transfer their stock right or restricting the exercise of shareholders ' rights. 91st article without the approval of the China Securities Regulatory Commission or its agency, any person or entity and its associated holding futures company without authorization more than 5% shares, or by providing false documents and other means to become future shareholders, the China Securities Regulatory Commission or its agency may order the deadline to transfer their ownership.

    The shares prior to the transfer, do not have the right to vote, the right to dividends.

    The seventh chapter legal liability

    92nd futures required for account opening procedures of the company and its subsidiaries accept no units or individuals commissioned by futures trading, or customer funds accounts, transaction coding lent to other units or individuals to use and give a warning, simply or and a 30,000 yuan fine.

93rd of the future of the company and its subsidiaries had the following acts, in accordance with the regulations on futures trading article 67th of punishment:

(A) does not provide for investors of appropriate management systems, clients ' lawful rights and interests;

(B) in accordance with stipulations client assets and companies own the property independent of each other and management;

(C) futures margin accounts and special settlement account for Futures Exchange store customer deposits;

(D) take customer deposits;

(E) to futures margin security custody monitoring information submitted false record, misleading statements or material omissions;

(F) violations of futures margin security deposit of provisions related to monitoring and management, clients ' lawful rights and interests;

(VII) in accordance with stipulations paid settlement guarantee fund, or fail to maintain the minimum amount of settlement provision earmarked funds;

(H) transfer orders without validation of customer accounts and positions;

(IX) violate the provisions relating to settlement of the CSRC management, damage the lawful rights and interests of other futures companies and their customers;

(J) the information does not comply with the requirements of clients ' lawful rights and interests;

(11) the violation of risk supervision indicators provided by the CSRC;

(12) in violation of regulations on futures investment advisory and asset management services, circumstances are serious;

(13) delegate to a violation or any other institution engaged in intermediary business;

(14) the shareholders and actual controllers and their associated reduced risk management requirements, against other legitimate rights and interests;

(15) in the joint venture, cooperation or joint ventures to set up branches or branch contracting, for rental to others, or the Branch provides centralized management;

(16) refusal to cooperate with, hinder or undermine China's securities and Futures Commission and its regulatory agencies;

    (17) the violation of the provisions on administration of futures investor safeguard funds.

94th futures company and its affiliates shall have any of the following circumstances, in accordance with the regulations on futures trading article 68th of punishment:

(A) false advertising or false advertising to entice customers to participate in futures trading;

    (B) in accordance with the provisions for amendment or cancellation of the futures margin account, or not in accordance with the provisions of disclosure of futures margin account information to customers. 95th public accounting firms, law firms, asset valuation and other intermediary service organizations in accordance with the provisions to fulfil their reporting obligations, provide or issue materials, reports, opinion is not complete, correction, confiscation of revenues, separately or concurrently fined less than 30,000 yuan.

    In charge and other personnel directly responsible for warning and fines of between 30,000 yuan.

    The 96th article without the approval of the China Securities Regulatory Commission or its agency, any person or entity and its associated holding futures company without authorization more than 5% shares, or by providing false documents and other means to become future shareholders, if the circumstances are serious, be warned, separately or concurrently fined less than 30,000 yuan.

    The eighth chapter supplementary articles The 97th article approved by the China Securities Regulatory Commission, undertakings engaged in specific futures other futures business.

    The specific measures shall be formulated separately by the China Securities Regulatory Commission.

    98th participating in other exchanges trading the futures company shall abide by the laws, administrative regulations and other business provided in the rules of trading venues.

    99th article this way that financial assets, including bank deposits, stocks, bonds, funds, asset management plan, bank financing products, trust, insurance, futures and interests. 100th article this way come into force on the date of promulgation. On August 19, 2005 released of on Hong Kong, and Macau service provides who shares futures brokers company about problem of notification (card prison futures word [2005]138,), and on February 25, 2007 released of on strengthening futures company customer risk control about work of notification (card prison futures word [2007]18,), and on April 9, 2007 released of futures company management approach (SFC makes 43rd,), and November 3, 2011 released of Futures sales management (for trial implementation) (SFC Bulletin [2011]33), released on May 10, 2012, about future company changes its registered capital or equity issues related to regulations (CSRC announcement [2012]11) repealed simultaneously.

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