Measures for the Suitability Management of Securities and Futures Investors (Amended in 2022)
Measures for the Suitability Management of Securities and Futures Investors (Amended in 2022)
Measures for the Suitability Management of Securities and Futures Investors (Amended in 2022)
Order of China Securities Regulatory Commission No. 202
August 12, 2022
(Deliberated and adopted at the seventh chairman executive meeting of the China Securities Regulatory Commission on May 26, 2016; amended for the first time according to the Decision on Amending and Repealing Some Securities and Futures Rules issued by the China Securities Regulatory Commission on October 30, 2020; and amended for the second time according to the Decision on Amending and Repealing Some Securities and Futures Rules issued by the China Securities Regulatory Commission on August 12, 2022)
Article 1 In order to regulate the suitability management of securities and futures investors and safeguard the legitimate rights and interests of investors, these Measures are hereby formulated according to the Securities Law of the People's Republic of China (hereinafter referred to as the "Securities Law"), the Law of the People's Republic of China on Securities Investment Funds (the "Law on Securities Investment Funds"), the Futures and Derivatives Law of the People's Republic of China (the "Futures and Derivatives Law"), the Regulations on the Supervision and Administration of Securities Companies, the Administrative Regulations on Futures Trading and other relevant laws and administrative regulations.
Article 2 These Measures shall apply to the relevant parties that sell publicly or privately offered securities, publicly or privately raised security investment funds and equity investment funds (including venture capital funds, the "Funds"), publicly or non-publicly traded futures and other derivatives, or provide relevant business services for investors.
For the purpose of these Measures, "investors" shall refer to the investors specified in the Securities Law, the investors and fund share holders specified in the Law on Securities Investment Funds, and the traders specified in the Futures and Derivatives Law.
Article 3 The agencies that sell securities and futures products to investors or provide securities and futures services (the "Operators") shall abide by the laws, administrative regulations, these Measures and other relevant provisions and in the course of selling products or rendering services, perform due diligence and prudential duties, comprehensively understand the situation of investors, conduct an in-depth investigation and analysis of the product or service information, carry out a scientific and effective assessment, fully disclose the risks, propose clear suitability matching opinions according to the different risk tolerance capability of investors, different risk levels of products or services and other factors, sell to or provide suitable investors with the suitable products or services, and bear legal liability for illegal acts.
Article 4 The investors shall, on the basis of learning about the products or services and taking into account the suitability opinions of the Operators, make decisions with prudence in the light of their own capability and bear the investment risks independently.
The suitability opinions of the Operators shall not mean that they will make substantive judgments or provide a guarantee on the risks and benefits of their products or services.
Article 5 The China Securities Regulatory Commission (the "CSRC") and its regional offices shall, in accordance with laws, administrative regulations, these Measures and other relevant regulations, exercise regulation over the performance of suitability obligations by the Operators.
The securities and futures exchanges, registration and settlement agencies, the Securities Association of China, the China Futures Association, the Asset Management Association of China (the "Trade Associations") and other self-regulatory organizations shall exercise self-regulation on the performance of suitability obligations by the Operator.
Article 6 The Operators selling products or rendering services to investors shall learn about the following information of the investors:
1. The basic information such as the name, address, occupation, age, contact method of the natural person; the name, registered address, business address, nature, qualification and business scope of the legal person or other organizations;
2. The financial situation such as the source and amount of income, assets and debts;
3. The investment-related study, work experience and investment experience;
4. The investment objectives such as investment term, varieties and expected returns;
5. The risk preferences and affordable losses;
6. The credit records;
7. The natural person that actually controls the investors and the actual beneficiaries of the trading;
8. The relevant information on the investor threshold requirements as prescribed by laws, regulations and self-discipline rules; and
9. Other necessary information.
Article 7 The investors shall be classified into general investors and professional investors. The general investors shall enjoy special protection in respect of information notification, risk warning, suitability matching, etc.
Article 8 The parties concerned meeting any one of the following requirements shall be classified as professional investors:
1. Financial institutions which are founded with the approval from the relevant financial regulatory authorities, including securities companies, futures companies, fund management companies and their subsidiaries, commercial banks, insurance companies, trust companies, finance companies, etc.; subsidiaries of securities companies, subsidiaries of futures companies and managers of private equity funds filed or registered in trade associations.
2.
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Order of China Securities Regulatory Commission No. 202
August 12, 2022
(Deliberated and adopted at the seventh chairman executive meeting of the China Securities Regulatory Commission on May 26, 2016; amended for the first time according to the Decision on Amending and Repealing Some Securities and Futures Rules issued by the China Securities Regulatory Commission on October 30, 2020; and amended for the second time according to the Decision on Amending and Repealing Some Securities and Futures Rules issued by the China Securities Regulatory Commission on August 12, 2022)
Article 1 In order to regulate the suitability management of securities and futures investors and safeguard the legitimate rights and interests of investors, these Measures are hereby formulated according to the Securities Law of the People's Republic of China (hereinafter referred to as the "Securities Law"), the Law of the People's Republic of China on Securities Investment Funds (the "Law on Securities Investment Funds"), the Futures and Derivatives Law of the People's Republic of China (the "Futures and Derivatives Law"), the Regulations on the Supervision and Administration of Securities Companies, the Administrative Regulations on Futures Trading and other relevant laws and administrative regulations.
Article 2 These Measures shall apply to the relevant parties that sell publicly or privately offered securities, publicly or privately raised security investment funds and equity investment funds (including venture capital funds, the "Funds"), publicly or non-publicly traded futures and other derivatives, or provide relevant business services for investors.
For the purpose of these Measures, "investors" shall refer to the investors specified in the Securities Law, the investors and fund share holders specified in the Law on Securities Investment Funds, and the traders specified in the Futures and Derivatives Law.
Article 3 The agencies that sell securities and futures products to investors or provide securities and futures services (the "Operators") shall abide by the laws, administrative regulations, these Measures and other relevant provisions and in the course of selling products or rendering services, perform due diligence and prudential duties, comprehensively understand the situation of investors, conduct an in-depth investigation and analysis of the product or service information, carry out a scientific and effective assessment, fully disclose the risks, propose clear suitability matching opinions according to the different risk tolerance capability of investors, different risk levels of products or services and other factors, sell to or provide suitable investors with the suitable products or services, and bear legal liability for illegal acts.
Article 4 The investors shall, on the basis of learning about the products or services and taking into account the suitability opinions of the Operators, make decisions with prudence in the light of their own capability and bear the investment risks independently.
The suitability opinions of the Operators shall not mean that they will make substantive judgments or provide a guarantee on the risks and benefits of their products or services.
Article 5 The China Securities Regulatory Commission (the "CSRC") and its regional offices shall, in accordance with laws, administrative regulations, these Measures and other relevant regulations, exercise regulation over the performance of suitability obligations by the Operators.
The securities and futures exchanges, registration and settlement agencies, the Securities Association of China, the China Futures Association, the Asset Management Association of China (the "Trade Associations") and other self-regulatory organizations shall exercise self-regulation on the performance of suitability obligations by the Operator.
Article 6 The Operators selling products or rendering services to investors shall learn about the following information of the investors:
1. The basic information such as the name, address, occupation, age, contact method of the natural person; the name, registered address, business address, nature, qualification and business scope of the legal person or other organizations;
2. The financial situation such as the source and amount of income, assets and debts;
3. The investment-related study, work experience and investment experience;
4. The investment objectives such as investment term, varieties and expected returns;
5. The risk preferences and affordable losses;
6. The credit records;
7. The natural person that actually controls the investors and the actual beneficiaries of the trading;
8. The relevant information on the investor threshold requirements as prescribed by laws, regulations and self-discipline rules; and
9. Other necessary information.
Article 7 The investors shall be classified into general investors and professional investors. The general investors shall enjoy special protection in respect of information notification, risk warning, suitability matching, etc.
Article 8 The parties concerned meeting any one of the following requirements shall be classified as professional investors:
1. Financial institutions which are founded with the approval from the relevant financial regulatory authorities, including securities companies, futures companies, fund management companies and their subsidiaries, commercial banks, insurance companies, trust companies, finance companies, etc.; subsidiaries of securities companies, subsidiaries of futures companies and managers of private equity funds filed or registered in trade associations.
2.
......