freemultihandvideopokergames| China Securities Association: Optimizing the business scope of alternative investment subsidiaries of securities companies

If you want to speculate in the stock market, you can see the research report of Jin Kirin analysts.FreemultihandvideopokergamesAuthoritative, professional, timely, comprehensive, to help you tap the potential theme opportunities!

Transferred from: website of the China Securities Association

Strengthen the constraints on the trading behavior of alternative subsidiaries, require alternative subsidiaries to continuously control and manage the risk of the investment target, and refine the relevant requirements of due diligence and post-investment management.

On May 10, according to the website of the China Securities Association, in order to further strengthen the supervision of securities companies, promote the compliance development of the two types of subsidiaries of securities companies, guard against financial risks, and improve the quality and efficiency of serving the real economy, the Association has extensively solicited opinions from all parties. The revision formed the Management Standard for Securities companies' alternative Investment subsidiaries (revised in 2024) and the Management Standard for Securities companies' Private Investment Fund subsidiaries (revised in 2024). It was voted and adopted at the 21st meeting of the Seventh Council of the Association and submitted to the China Securities Regulatory Commission for the record.

The China Securities Association said that in order to correctly understand and apply the provisions of the two norms, the Association has formulated a supporting document, "opinions on the Application of self-discipline rules No. 6-- opinions on the Application of regulations on alternative Investment subsidiaries of Securities companies and the Management Standards of Private Investment Fund subsidiaries of Securities companies", which have been examined and approved by the Office of the President of the Association. The above rules and documents are hereby issued and will come into force on 31 May 2024.

Code for the Management of Securities companies' alternative Investment subsidiaries (revised in 2024) and

Revised Note on the Management Standard of Private Investment Fund subsidiaries of Securities companies (revised in 2024)

In order to implement the spirit of the Central Financial work Conference and some opinions of the State Council on strengthening Supervision, preventing risks and promoting the High-quality Development of the Capital Market, and on strengthening the Supervision of Securities companies and Public funds and speeding up the Construction of first-class Investment Banks and Investment institutions (for trial implementation), guide the investment business of securities companies to improve the quality and efficiency of serving the real economy, and further stimulate market vitality. Promote the compliance of the two types of subsidiaries of securities companies, strengthen the internal governance of industry institutions, return to origin, develop steadily, and guard against financial risks. China Securities Industry Association (hereinafter referred to as the Association) on the "Securities Company alternative Investment subsidiary Management Standard" (hereinafter referred to as "alternative Sub-Management Standard") and "Securities Company Private Investment Fund subsidiary Management Standard" (hereinafter referred to as "Private recruitment Sub-Management Standard") It has been revised in conjunction with the "alternative Sub-Management Code", and the relevant amendments are now described as follows:

I. revision of background

On December 30, 2016, the Association issued two standards. in accordance with the working thinking and overall deployment of the China Securities Regulatory Commission, the Association established a tripartite consultation mechanism with the Institutional Department of the CSRC and the Fund Industry Association. around the work goal of "promoting the return to the main business, streamlining the organizational structure, straightening out the business system, strengthening internal control, and orderly slow release of risks", we urge and guide securities companies to standardize their organizational structure in a timely and comprehensive manner. With the smooth conclusion of the standardization and rectification work, the organizational structure of securities companies has been further standardized, the level of subsidiaries has been further simplified, the business has been further returned, and the level of compliance risk control has been continuously improved. At the same time, since the release and implementation of the two standards, the development of the industry and the market situation have undergone certain changes. On the one hand, the promulgation of the new "National Nine articles" fully reflects the great importance and ardent expectations of the CPC Central Committee and the State Council on the capital market, and takes this as an opportunity to revise and improve the "two norms." we will better promote securities companies to play a role in serving the real economy, national strategy, and resident wealth management. On the other hand, it is necessary to sum up the experience of standardizing rectification and reform in time, further improve the system and rules, strengthen the standardization and supervision of the organizational structure, and continue to prevent "out of control", so as to promote the high-quality development of the industry.

II. Revision principles

The first is to maintain the basic framework, strengthen regulatory requirements, and standardize the industry ecology. Most of the contents of the "two norms" are still in line with the current regulatory situation and industry practice. On the basis of further strengthening the past effective practices, we will further improve the risk prevention rule system and promote the sound and standardized development of the industry.

The second is to improve some of the provisions, solve the problem of "blocking points", and give full play to the functions of the industry. Respond to the reasonable demands of the market, appropriately optimize individual business rules, meet the needs of practice, give better play to the function of investment business, and serve the development of the real economy.

III. Revision of the main contents

(1) optimizing the business scope of alternative subsidiaries

Make it clear that alternative subsidiaries shall carry out follow-up investment business in accordance with the relevant regulations of the CSRC and the exchange; make it clear that alternative subsidiaries can invest in commodities, stocks of companies listed in the national share transfer system for small and medium-sized enterprises, and other investment varieties approved by the China Securities Regulatory Commission, at the same time, securities companies are required to make a good division of business and effectively avoid inter-industry competition, conflict of interest and transfer of interests (Article 2 of the "alternative Sub-Management Code").

(2) to improve some business and internal control supervision requirements of subsidiaries

The first is to strengthen the constraints on the trading behavior of alternative subsidiaries, requiring alternative subsidiaries to continuously control and manage the risk of the investment target, and refine the relevant requirements of due diligence and post-investment management (Article 13 of the alternative Sub-Management Code).

The second is to improve the relevant requirements for private equity fund subsidiaries to set up secondary management subsidiaries, stipulating that secondary management subsidiaries shall be registered as fund managers and shall no longer set up any institutions, further implement the work requirements of strengthening supervision, risk prevention and control, and serving the real economy (articles 12, 13 and 14 of the "Private recruitment Sub-Management Code").

The third is to optimize and increase the types of cash management investment targets of subsidiaries, improve the flexibility of idle fund management, and clarify the regulatory principles and guidance (Article 15 of the "alternative Sub-Management Standard" and Article 16 of the "Private recruitment Sub-Management Standard").

(3) to strengthen the restriction on illegal related party transactions of subsidiaries

In order to strengthen the management of related party transactions, prevent securities companies and subsidiaries from providing financing or guarantee to shareholders or other related parties in violation of regulations, and increase the prohibitive provisions of "providing loans to related parties directly or indirectly, and facilitating illegal financing for related parties" (Article 14 of the "alternative Sub-Management Standard" and Article 19 of the "Private offering Sub-Management Standard"). At the same time, to increase the requirements of related party transaction management of alternative subsidiaries, alternative subsidiaries should establish an effective related party transaction management system, and manage the behavior of related party transactions in accordance with the principle of substance over form and penetration (Article 32 of the alternative Sub-Management Code).

(4) improve the relevant requirements of personnel management

The requirement that the senior management personnel of two types of subsidiaries should be put on record with the relevant dispatched offices of the CSRC in accordance with the law (Article 29 of the "alternative Sub-Management Code" and Article 31 of the "Private recruitment Sub-Management Standard"). It is clear that the compliance officers of subsidiaries shall be selected by the parent company (Article 26 of the alternative Sub-Management Standards and Article 28 of the Private recruitment Sub-Management Standards) Improve the principled requirements for investment behavior and salary management of relevant personnel in subsidiaries (articles 28 and 30 of "alternative Sub-Management Standards" and 30 and 32 of "Private recruitment Sub-Management Standards").

(5) to supplement the requirements and measures of self-discipline management

Improve the relevant requirements for reporting matters of subsidiaries, make it clear that alternative subsidiaries shall register their employees, supplementary associations may take self-regulatory measures against employees that are not suitable to engage in related business (articles 36, 37 and 40 of the regulations on the Management of alternative Sub-companies and Article 34 of the regulations on the Management of Private recruits).

(6) to supplement the basis of the superior law

Add "measures for Compliance Management of Securities companies and Securities Investment Fund Management companies" and "measures for Supervision and Administration of Directors, Supervisors, Senior managers and employees of Securities Fund operating institutions" as the basis for standardizing the superior law of the two parts. And add the "regulations on the Supervision and Administration of Private Investment funds", "measures for the Management of Private assets of Securities and Futures institutions" and "regulations on the Operation and Management of Private assets Management plans of Securities and Futures institutions" as the superior legal basis for the "norms for the Management of Private offerings".