China Securities Regulatory Commission, Tentative Measures for the Administration of the Futures Investor Protection Fund

中国证券监督管理委员会期货投资者保障基金管理暂行办法

June 02, 2007 | BY

clpstaff &clp articles &

The futures investor protection fund may grant full compensation for losses of Rmb 100,000 or below.

Clp Reference: 3700/07.04.19 Promulgated: 2007-04-19 Effective: 2007-08-01

Promulgated: April 19 2007
Effective: August 1 2007

Applicability: The term "futures investor protection fund" refers to a special fund for compensating investors' margin losses when futures companies experience a margin shortfall due to a material breach of laws or regulations or inadequate risk control, etc., that may seriously jeopardize social stability and futures market security (Article 2).

Main Contents: The start-up funds for the futures investor protection fund are formed from 15% of the total amount accumulated in the risk reserve account of the futures exchange up to December 31 2006. Sources of subsequent funds for the futures investor protection funds include:

(1) 3% of the transaction handling fees charged on futures company members by the futures exchange;

(2) transaction handling fees charged by a futures company at a rate of 0.00005% to 0.0001%; and

(3) other lawful property recovered or received by the management institution for the futures investor protection fund (Article 9).

Futures companies carrying higher risks due to deteriorating financial position and inadequate risk control, shall contribute to the futures investor protection fund at a higher rate (Article 9).

Compensation to futures investors' margin loss made from the futures investor protection fund shall be given in accordance with the following principles:

(1) margin loss of Rmb100,000 or less of each individual investor shall be compensated in full and the portion in excess of Rmb100,000 shall be compensated at 90%; and

(2) margin loss of Rmb100,000 or less of each institutional investor shall be compensated in full and the portion in excess of Rmb100,000 shall be compensated at 80% (Article 20).

Related Legislation: Regulations for the Administration of Futures Trading

clp reference:3700/07.04.19promulgated:2007-04-19effective:2007-08-01

This premium content is reserved for
China Law & Practice Subscribers.

  • A database of over 3,000 essential documents including key PRC legislation translated into English
  • A choice of newsletters to alert you to changes affecting your business including sector specific updates
  • Premium access to the mobile optimized site for timely analysis that guides you through China's ever-changing business environment
For enterprise-wide or corporate enquiries, please contact our experienced Sales Professionals at +44 (0)203 868 7546 or [email protected]