China Securities Regulatory Commission, Measures on Regulation of the Qualifications of Directors, Supervisors and Senior Management Personnel of Securities Companies

Promulgated: November 30 2006
Effective: December 1 2006
Applicability: The term "senior management personnel of securities companies" (Senior Management Personnel) refers to the general manager, deputy general manager(s), person in charge of finance, person in charge of legal compliance, secretary to the board of directors, persons in charge of domestic (sub-)branches and persons who actually perform the above-mentioned duties in a securities company. Members of the management committee, operations committee and similar bodies that perform operations and management duties in a securities company are Senior Management Personnel (Article 2).

Main contents: Directors, supervisors and Senior Management Personnel of a securities company shall, prior to assuming the office, have qualifications approved by the China Securities Regulatory Commission (Article 3). Directors and supervisors shall have at least three years of experience in securities, financial, legal or accounting work or at least five years of experience in economics-related work (Article 9). Independent directors shall have at least five years of experience in securities, financial, legal or accounting work (Article 10). Persons in charge of (sub-) branches shall have at least three years of experience in securities work or at least five years of experience in economics-related work (Article 14). Other Senior Management Personnel shall have at least three years of experience in securities work or at least five years of experience in financial, legal or accounting work (Article 13). Foreigners serving managerial positions in a domestically-invested securities company and in a securities company with foreign equity participation may at most account for 30% and 50% of the total number of that type of personnel in the company, respectively (Article 38). A person may only serve as an independent director for at most two securities companies (Article 39).
Related legislation: PRC Securities Law (Amended), Oct 27 2005, CLP 2006 No.1 p.31; PRC Company Law (Amended), Oct 27 2005, CLP 2005 No.10 p.21 and Administrative Licensing Law
Repealed legislation: Tentative Measures for the Administration of the Qualifications for the Appointment of Senior Managers of Securities Institutions, 1998 and Measures for the Administration of Senior Management Personnel of Securities Companies, Oct 9 2004, CLP 2004 No.9 p.8