The Securities Association of China, Membership Convention (Trial Implementation)

Adopted: July 3 2002
Interpreting authority: The General Affairs Committee of the Securities Association of China
Applicability: The Convention applies to association members attached to securities companies, fund management companies and securities investment consultancy companies (Article 18).

Main contents: The Convention aims to regulate member behaviour, increase the professional image of the industry, strengthen integrity and observance of the law within the association, and promote fair competition (Article 1). It stipulates the laws and regulations members must follow (Article 2), defines the results members must strive to achieve (Article 3) and clarifies what actions are prohibited (Article 4).
Next, it specifies what acts members must not perform when engaging in: distribution services (Article 5); brokerage services (Article 6); investment management (Article 8); fund management (Article 9); and investment consultancy (Article 10).
The association's supervisory committee investigates contravening actions and makes recommendations based on the investigation results (Article 11). The association may issue a warning or, based on the seriousness of the contravention, may enforce the following penalties: written criticism; criticism through membership communiqué; public condemnation; temporary suspension of membership rights; temporary suspension of membership; or cancellation of membership (Article 13).
` The association will reward and give citation to members who, besides complying with the convention, offers innovations or important ideas to the industry, or who report serious crimes or contraventions (Article 16).
Related legislation: The Securities Association of China, Constitution