Xinhu Futures

Interim Measures for Administration of Securities and Futures Investment Consult

 (Approved by the State Council on November 30, 1997 and promulgated by the Securities Commission of the State Council on December 25, 1997) 

 

Chapter I General Provisions 

 

Article 1 The Measures are formulated to strengthen the administration of securities and futures investment consultancy and safeguard investors’ lawful rights and interests as well as social, public interests. 


Article 2 The Measures shall be abided by when the securities and futures investment consultancy business is conducted within the boundary of the People’s Republic of China. 

The securities and futures investment consultancy as termed in the Measures refers to the activities conducted by the institutions and the staff engaged in investment consulting services with regard to the provision for securities and futures investors or clients with direct or indirect paid consulting services including analyses, predictions or suggestions for investment in securities and futures in the following ways: 

(1) provide securities and futures investment consultancy services upon the acceptance of the entrustment by the investor or client; 

(2) sponsor lectures, report meetings and analysis meetings regarding securities and futures investment consultancy; 
(3) publish articles, commentaries and reports concerning securities and futures investment consultancy in newspapers, and provide securities and futures investment consultancy services through radio and TV station and other public media; 

(4) provide securities and futures investment consultancy services through telecommunications equipment and systems such as telephone, fax and computer network; 

(5) other methods as affirmed by the China Securities Regulatory Commission (CSRC). 

  

Article 3 The business license granted by the CSRC shall be obtained according to the regulations specified in the Measures before any securities and futures investment consultancy business is to be conducted. Without the permission of the CSRC, no institution or individual is allowed to be engaged in the securities and futures investment consultancy services as specified in Article 2 of the Measures. 

The securities institutions, futures brokerage institutions and their staff shall comply with the regulations of the Measures when engaged in the securities and futures investment consultancy business beyond the scope of their business. 

  

Article 4 Relevant laws, regulations, rules and relevant provisions of the CSRC shall be observed with the principle of objectivity, justness, honesty and creditability upheld when dealing in the securities and futures investment consultancy business. 

  

Article 5 The CSRC and its authorized local securities and futures regulatory authorities (hereinafter referred to as ‘local regulatory authorities’) take charge of the supervision and management of the securities and futures investment consultancy business as well as the implementation of the Measures. 

  

Chapter II Securities and Futures Investment Consulting Institution 

Article 6 Institutions applying for securities and futures investment consultancy qualifications shall meet the following conditions: 

(1) The institutions shall be those engaged in securities or futures investment consultancy businesses, and shall have more than five full-time staff members with qualifications for securities and futures investment consultancy; the institutions engaged in both securities and futures investment consultancy businesses shall have more than ten full-time staff with qualifications for securities and futures investment consultancy; and at least one of their senior managerial personnel shall be of the qualification for securities or futures investment consultancy;  

(2) The registered capital shall be more than RMB1.00 million; 

(3) The fixed business venue and the communications and other information transformation facilities suitable for the business shall be furnished; 

(4) The articles of association shall be formulated; 

(5) The internal management system shall be complete and sound; 

(6) Other conditions required by the CSRC shall be met. 

  

Article 7 Securities institutions and futures brokerage institutions shall meet the requirements specified in Article 6 of the Measures before applying for concurrent engagement in securities and futures investment consultancy businesses. 

Other consulting institutions engaged in consulting services may apply for concurrent engagement in the securities and futures investment consultancy business if they have met the requirements as specified in Article 6 of the Measures. 

  

Article 8 The examination and approval of the securities and futures investment consultancy qualification applied for by the institution will be conducted according to the following procedures: 

(1) Applicants may apply to a local regulatory authority (If the local regulatory authority proves to be of no authorization by the CSRC, the applicant can apply to the CSRC directly, and the same applies in the following). The local regulatory authorities put forward their preliminary opinions after their examination and approval of the aforesaid application; 

(2) The local regulatory authority shall submit the application documents examined and approved to the CSRC. The CSRC then awards the business license to the applicant and sends a copy of the approval document to the local regulatory authority after it examines and approves the application documents; 

(3) The CSRC will publish the information about the applicants, who have obtained the business licenses, by way of a public announcement. 

  

Article 9 Institutions which apply for securities and futures investment consultancy qualifications shall submit the following documents: 

(1) uniformed application form prepared by the CSRC; 

(2) the articles of association of the company; 

(3) corporate business license; 

(4) list of senior managerial personnel and those engaged in securities and futures investment consultancy businesses, and information of their educational background, work experience as well as their qualification certificates; 

(5) the mode adopted to conduct investment consulting businesses as well as the internal management regulations and systems; 

(6) certificates for use in business venues as well as the institution’s correspondence address, phone number and fax number; 

(7) capital appraisal report issued by a competent certified public accountant; 

(8) other documents required by the CSRC. 

  

Article 10 In case a change occurs in the business mode, business venue, chief person-in-charge and staff with qualifications for securities and futures investment consultancy of the securities and futures investment consulting institution, the institution shall submit a report on the change that has occurred to the local regulatory authority and go through the procedures for the change in 5 working days after the date of change. 

  

Article 11 The securities and futures investment consulting institution shall apply, in a period from January 1 to April 20 every year, to the local regulatory authority for annual inspection. The following documents shall be submitted in the handling of the annual inspection: 

(1) application for annual inspection; 

(2) annual business report; 

(3) financial accounting statements audited by a competent certified public accountant. 

The local regulatory authority shall work out its opinion on the annual inspection application within 20 working days upon the date of receipt of the above listed documents. The aforesaid application is to be submitted to the CSRC for examination and approval if approved by the local regulatory authority. The securities and futures investment consulting institution, which fails to submit its annual inspection report or fails to pass the annual inspection after the required examination procedure, shall not continue to be engaged in the securities and futures investment consultancy business.

 

For full version, please click here.

Contact Us

Headquarter
Address:
Xinhu Futures Co., Ltd. 36 Floor, InterContinental Business Center No. 100 Yutong Road (No. 500 Hengfeng Road) Shanghai, China    200070
Contact Person: Wang Weijie
(International Business Department)
Tel:
+86-21-2215 5663
Fax:
+86-21-2215 5688
Email:
wangweijie@xhqh.net.cn
Contact Person: Yang Fang
(International Business Department)
Tel:
+86 (21)-2215 5636
Fax:
+86 (21)-2215 5559
Email:
yangfang@xhqh.net.cn
Contact Person: Sun Zhi
(International Business Department)
Tel:
+86 (21)-2215 5617
Fax:
+86 (21)-2215 5559
Email:
sunzhi@xhqh.net.cn