China Securities Regulatory Commission and Ministry of Justice, Measures for the Administration of the Provision of Securities-related Legal Services by Law Firms

中国证券监督管理委员会、司法部律师事务所从事证券法律业务管理办法

May 02, 2007 | BY

clpstaff &clp articles &

Requirements for securities-related legal opinions detailed.

Clp Reference: 1400/07.03.09 Promulgated: 2007-03-09 Effective: 2007-05-01

Promulgated: March 9 2007
Effective: May 1 2007

Applicability: The term "securities-related legal services" means the legal services provided by a law firm appointed by a concerned party that consists of preparing and issuing legal opinions and other such documents for securities activities of the concerned party, such as a securities offering, listing and trading (Article 2).

Main Contents: Law firms that satisfy the following conditions are encouraged to provide securities-related legal services:

(1) having compliant internal management, a sound risk control system, high standards of practice and a good reputation;

(2) having at least 20 practising lawyers, of whom at least five have experience in securities-related legal services;

(3) having valid practice liability insurance; and

(4) not having been subjected to administrative penalties during the most recent two years for illegal practice (Article 8).

A law firm may not issue legal opinions for both the issuer, on the one hand, and the sponsor and underwriting securities company, on the other hand, in a securities offering, or issue legal opinions for both the acquirer and the target listed company in a takeover or issue legal opinions for different materially interested parties in a securities business activity (Article 11).

Related Legislation: PRC Securities Law (Amended), Oct 27 2005, CLP 2006 No.1 p.31; and PRC Lawyers Law (Amended), Oct 28 2007, CLP 2007 No.10 p.83

Full Analysis & Translation: See page 22

clp reference:1400/07.03.09promulgated:2007-03-09effective:2007-05-01

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