CHAPTER ONE GENERAL PROVISIONS CHAPTER TWO SECURITIES AND FUTURES INVESTMENT CONSULTANCY INSTITUTIONS CHAPTER THREE SECURITIES AND FUTURES INVESTMENT CONSULTANTS CHAPTER FOUR ADMINISTRATION OF SECURITIES AND FUTURES INVESTMENT CONSULTANCY BUSINESS CHAPTER FIVE PENALTIES CHAPTER SIX SUPPLEMENTARY PROVISION Article 1 This set of procedures is formulated for the strengthening of administration of consultancy services over securities and futures Article 2 This set of procedures must be abided by when conducting securities and futures investment consultancy services within the boundaries Securities and futures investment consultancy referred to in this set of procedures means direct or indirect paid consultancy services (1) Commissioned by investors or clients to provide securities and futures investment consultancy services; (2) Undertaking lectures, seminars and analyzing meetings in respect of securities and futures investment consultancy; (3) Publishing articles, commentaries and reports on securities and futures investment in newspapers and magazines, or providing securities (4) Providing securities and futures investment consultancy services through telephone, facsimile, computer networks and other telecommunications (5) Other means as determined by the China Securities Regulatory Commission (hereinafter referred to as the CSRC). Article 3 To be engaged in securities and futures investment consultancy business, permission should be obtained from the CSRC in accordance Securities business institutions and futures brokerage institutions and their employees that are engaged in securities and futures Article 4 Securities and futures investment consultancy business should be undertaken in accordance with relevant laws, regulations, rules Article 5 The CSRC and the local securities and futures regulatory departments authorized by the CSRC (referred to hereinafter as local securities
CHAPTER TWO SECURITIES AND FUTURES INVESTMENT CONSULTANCY INSTITUTIONS Article 6 To apply for qualification of engagement in securities and futures investment consultancy business, the following requirements should (1) For institutions engaged in securities investment consultancy services or futures investment consultancy services separately, (2) With more than RMB1 million in registered capital; (3) In possession of a fixed business site and necessary communications and other information-transmission facilities relevant to (4) Having formulated articles of association for the company; (5) Having sound internal management mechanism; (6) Meeting other conditions as required by the CSRC. Article 7 Only securities business institutions and futures brokerage institutions that can meet the requirements as set in Article 6 of this Institutions engaging in other consultancy service may apply for engagement in securities and futures consultancy services only if Article 8 Institutions applying for qualification of engagement in securities and futures investment consultancy business should seek examination (1) The applicant files application with local securities regulatory authorities authorized by the CSRC (if the local securities regulatory (2) The local securities regulatory authorities report and sent the application papers that have been examined and approved to the (3) The CSRC will publish the conditions of the applicants who have acquired business licenses through public notices. Article 9 Institutions applying for qualification of engagement in securities and futures investment consultancy business, should submit the (1) Application form printed by the CSRC on a unified basis; (2) The company’s articles of association; (3) Business license of the enterprise’s legal person; (4) Name-list of the institution’s high-ranking managerial personnel and full-time employees engaged in securities and futures investment (5) Modes of engagement in investment consultancy business and the internal administration regulations and rules; (6) Testimonial documents on the use of business sites, the institution’s mailing address, telephone and facsimile numbers; (7) Asset evaluation reports as furnished by certified public accountants; and (8) Other documents as required by the CSRC. Article 10 Whereas there are changes in the securities and futures investment consultancy institutions’ mode of business, business sites, major Article 11 Securities and futures investment consultancy institutions shall apply for annual inspections between January 1 and April 30 of each (1) Application report for annual inspection; (2) Annual business report; and (3) Annual financial balance sheets audited by certified public accountants; The local securities regulatory authorities shall provide examination and verification opinions within 20 business days since receipt Securities and futures investment consultancy institutions that fail to submit annual inspection reports of fail to pass annual inspections
CHAPTER THREE SECURITIES AND FUTURES INVESTMENT CONSULTANTS Article 12 Persons engaged in securities and futures investment consultancy business should obtain qualification certificates for engagement Failure to obtain qualification certificates for securities and futures investment consultancy business, or though having acquired Article 13 Securities and futures investment consultants applying for qualification for engagement in securities and futures investment consultancy (1) Having citizenship of the People’s Republic of China; (2) Having full capacity for civil conduct; (3) Having good integrity, being honest and excellent in work ethics; (4) Having not been penalized for criminal offenses or major violations in the field of securities and futures business; (5) Having educational background of above colleges; (6) Securities investment consultants having over two years of experience in securities business; futures investment consultants have (7) Having passed examinations for qualification organized by the CSRC on a unified basis for people engaged in securities and futures (8) Other requirements as stipulated by the CSRC. Article 14 Securities and futures investment consultants applying for qualification for engagement in securities and futures investment consultancy (1) The applicant files application with local securities regulatory authorities authorized by the CSRC (if the local securities regulatory (2) The local securities regulatory authorities report and send the application papers that have been examined and approved to the Article 15 Securities and futures investment consultants applying for qualification for engagement in securities and futures investment consultancy (1) Application form uniformly printed by the CSRC; (2) Identification cards; (3) Academic certificates; (4) Applicants’ score reports of qualification examinations for persons engaged in securities and futures business; (5) Statements on the applicants’ past conduct provided by the unit where the applicants work or the subdistrict offices of the applicants’ (6) Other documents as required by the CSRC. Article 16 For those who have acquired qualification for engagement in securities and futures investment consultancy business, when they are Article 17 For those who have acquired qualification for engagement in securities and futures investment consultancy business shall undergo Article 18 Persons who are engaged in securities and futures investment consultancy business are not allowed to serve with two or more securities
CHAPTER FOUR ADMINISTRATION OF SECURITIES AND FUTURES INVESTMENT Article 19 Securities and futures investment consultancy institutions and their investment consultants should abide by the established principles Article 20 Securities and futures investment consultancy institutions and their investment consultants should use related information and data Article 21 Securities and futures investment consultancy institutions and their investment consultants are not allowed to provide investors Article 22 Securities and futures investment consultants, when publishing articles, delivering lectures or giving suggestions in newspapers, Article 23 Securities and futures investment consultancy institutions, when jointly running special columns, programs on securities and futures Article 24 Securities and futures investment consultancy institutions and their investment consultants are banned from the following activities: (1) Buying and selling securities and futures on behalf of investors; (2) Making pledges on profits for securities and futures investment to investors; (3) Making agreements with investors to share investment profits or losses; (4) Buying stocks or securities that have the nature and funcions of securities, and futures for themselves; (5) Capitalizing on consultancy services to collaborate with others in manipulating the market or engagement in inside trading; and (6) other frauds concerning securities and futures banned by laws, regulations and rules. Article 25 Investment analyses, forecasts and suggestions given by securities and futures investment consultancy institutions on the same topic Securities business institutions that conduct securities transactions themselves, when being engaged in securities investment consultancy Article 26 Brief reports, bulletins, development reports and information systems on securities and futures compiled and distributed by securities Underwriters of companies approved by the CSRC to issue stocks publicly, or stock placement recommenders and the securities investment Article 27 The CSRC and the local securities regulatory authorities have the right to conduct inspections on business activities of securities Article 28 Securities and futures investment consultancy institutions should preserve for two years the investment consultancy data they provided Article 29 The local securities regulatory authorities, when acting on complaints and tip-offs from investors or the public, have the right Article 30 Any units or individuals who found violations of this set of procedures by securities and futures investment consultancy institutions, Article 31 The local securities regulatory authorities shall place acts of violation of this set of procedures on file for investigation and
Article 32 Unauthorized engagement in securities and futures investment consultancy business as described in Article 2 of this set of procedures Article 33 Securities and futures investment consultancy institutions that are engaged in one of following acts shall be fined of more than (1) Documents and data submitted to securities regulatory departments contain false statements or major omissions; (2) Failure to meet the obligations of reporting and annual inspections as stipulated in this set of procedures; (3) Failure to register changes in the related matters of the institutions in accordance with provisions of this set of procedures; (4) Securities and futures investment consultants employed by the institutions received administrative penalties for violations of (5) Interference in and obstruction of inspections, investigations conducted by the local securities regulatory authorities, or the Article 34 Whereas securities and futures investment consultancy institutions violate Articles 18, 19, 20, 21, 22, 23, 24, 25 and 28 of this Article 35 Whereas securities and futures investment consultancy institutions violate Article 26 of this set of procedures, the local securities Article 36 Whereas securities and futures investment consultants violate Articles 18, 19, 20, 21, 22 and 24 of this set of procedures, or fail Article 37 Staff members of the CSRC and the local securities regulatory authorities who neglect their duties, abuse their power, play favoritism
CHAPTER SIX SUPPLEMENTARY PROVISION Article 38 This set of procedures shall enter into force as of April 1,1998.
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