CSRC Seeks Comments on Measures for the Supervision and Administration of Futures Companies

The China Securities Regulatory Commission ("CSRC") has recently released the revised Measures for the Supervision and Administration of Futures Companies (Draft for Comment) (the "Draft for Comment") for public consultation by March 31, 2019.

Revisions introduced by the Draft for Comment include: 1. intensifying requirements for qualifications of majority shareholders of futures companies, particularly their controlling shareholders and largest shareholders; 2. enhancing administration of equities of futures companies and reinforcing obligations of their shareholders; 3. improving the management of subsidiaries established by futures companies at home and abroad; 4. optimizing requirements for futures companies' management of account opening and trading practices of their clients; and 5. improving rules concerning the management of information systems adopted by futures companies and clarifying the institutional requirements for the compliant operation of futures companies' information systems. Among others, the Draft for Comment specifies respective duties of prospective shareholders and equity sellers in equity transactions, introduces a new regulatory requirement that controlling shareholders of futures companies shall regularly assess and report their own conditions, makes an improvement to items that shall be reported by futures companies and by their shareholders and actual controllers, and adds regulatory requirements for relate-party transactions struck by futures companies.



(Source: http://www.csrc.gov.cn/pub/zjhpublic/zjh/201903/t20190301_351582.htm)

Note: The link to the Chinese official website of the document is for your reference.