Trial Provisions for the Establishment of Subsidiaries by Securities Companies
证券公司设立子公司试行规定
With the approval of the CSRC, a securities company may establish a wholly-owned subsidiary or, alternatively, invest in and establish a subsidiary together with another qualified investor.
Revised on October 11 2012. Latest revision can be found at: http://www.chinalawandpractice.com/Article/3114064/Trial-Provisions-for-the-Establishment-of-Subsidiaries-by-Securities-Companies-Revised.html
(Issued by the China Securities Regulatory Commission on December 28 2007 and effective as of January 1 2008.)
Zheng Jian Ji Gou Zi [2007] No.345
(中国证券监督管理委员会于二零零七年十二月二十八日发布,自二零零八年一月一日起施行。)
Article 1: These Provisions have been formulated pursuant to the Company Law, the Securities Law and other relevant laws and administrative regulations in order to meet the requirements of establishing securities company groups and the professional operations and management of securities companies, regulate the establishment by securities companies of subsidiaries and their relationships with such subsidiaries and promote the innovative development of securities companies and the opening of the securities industry to foreign investment.
证监机构字 [2007] 345号
Article 2: For the purposes of these Provisions, the term "subsidiary" means a securities company established in accordance with the Company Law and the Securities Law, engaging in one or more securities businesses approved by the China Securities Regulatory Commission (the CSRC) and controlled by a securities company.
第一条为了适应证券公司集团化和专业化经营管理的需要，规范证券公司设立子公司的行为及其与子公司的关系，促进证券公司的创新发展和证券行业的对外开放，根据《公司法》、《证券法》和其他有关法律、行政法规，制定本规定。
Article 3: A securities company and a subsidiary thereof, or two subsidiaries controlled by one securities company may not engage in a business that would give rise to a conflict of interest between them or would have them competing against each other.
第二条本规定所称子公司是指依照《公司法》和《证券法》设立，由一家证券公司控股，经营经中国证券监督管理委员会（以下简称“中国证监会”）批准的单项或者多项证券业务的证券公司。
Article 4: With the approval of the CSRC, a securities company may establish a wholly-owned subsidiary or, alternatively, invest in and establish a subsidiary together with another investor that satisfies the conditions for being a shareholder of a securities company as specified in the Securities Law.
第三条证券公司与其子公司、受同一证券公司控制的子公司之间不得经营存在利益冲突或者竞争关系的同类业务。
The other investor as specified in the preceding paragraph shall be conducive to enhancing the governance structure, improving the competitiveness and promoting the sustained compliant development of the subsidiary. If such investor is a financial institution, it shall have certain strengths in terms of technical cooperation, personnel training, management services or sales channels, etc.
第四条经中国证监会批准，证券公司可以设立全资子公司，也可以与符合《证券法》规定的证券公司股东条件的其他投资者共同出资设立子公司。
Article 5: To establish a subsidiary, a securities company shall satisfy the following prudential conditions:
前款规定的其他投资者应当有益于子公司健全治理结构，提高竞争力，促进子公司持续规范发展。属于金融机构的，应当在技朮合作、人员培训、管理服务或者营销渠道等方面具备一定优势。
(1) its risk control indicators for the most recent 12 months have continuously been in compliance with prescribed standards, and its net assets during the previous year have not been less than Rmb1.2 billion;
第五条证券公司设立子公司，应当符合下列审慎性要求：
(2) it has relatively strong operation and management capabilities; if the proposed subsidiary is to engage in securities brokerage, securities underwriting and sponsorship or securities asset management, the securities company's market share in such business during the previous year shall not be less than a medium level in the industry;
（一） 最近十二个月各项风险控制指标持续符合规定标准，最近一年净资本不低于12亿元人民币；
(3) it has a sound corporate governance structure, sound risk management system and internal control mechanisms that are able to effectively guard against risk transmission and conflicts of interest between it and its subsidiary; and
（二） 具备较强的经营管理能力，设立子公司经营证券经纪、证券承销与保荐或者证券资产管理业务的，最近一年公司经营该业务的市场占有率不低于行业中等水平；
(4) other requirements of the CSRC.
（三） 具备健全的公司治理结构、完善的风险管理制度和内部控制机制，能够有效防范证券公司与其子公司之间出现风险传递和利益冲突；
Article 6: When applying to establish a subsidiary, a securities company shall submit the following documents to the CSRC:
（四） 中国证监会的其他要求。
(1) an application signed by the legal representative or authorized representative of the investor in the subsidiary;
第六条证券公司申请设立子公司，应当向中国证监会提交下列文件：
(2) the contract between the investors for the establishment of the subsidiary or the resolution of the shareholders meeting or shareholders general meeting if the subsidiary is to be established by a single investor;
（一） 子公司出资人的法定代表人或者授权代表签署的申请表；
(3) a draft of the articles of association of the subsidiary;
（二） 出资人关于设立子公司的合同或者单独出资设立子公司的股东会或者股东大会的决议；
(4) a feasibility study report that shall, at minimum, include the basic particulars of the investor(s); a description of the applicant's corporate governance structure, and risk management, internal control and compliance management systems and the arrangements to guard against risk transmission and conflicts of interest arising between the securities company and the subsidiary; a description of the subsidiary's organizational and management structure and scope of business, and its business development plan, etc.;
（三） 子公司章程草案；
(5) a list of the investors and a description of their capital contribution amounts, capital contribution methods and capital contribution percentages, an asset appraisal report for any part of a capital contribution to be made in non-monetary property, a description of the affiliated relationship between the investors, audited reports for the most recent three years of the investors that will hold at least 5% of the equity and a chart of the equity structure of the subsidiary;
（四） 可行性研究报告，内容至少包括：出资人基本情况；申请人的公司治理结构、风险管理、内部控制和合规管理制度的说明，以及防范证券公司与其子公司之间出现风险传递和利益冲突的安排；子公司的组织管理架构、业务范围的说明和业务发展规划等；
(6) supporting documentation evidencing the qualifications of the subsidiary's proposed chairman of the board, chairman of the supervisory board and senior management personnel for their positions;
（五） 出资人名册及其出资额、出资方式和出资比例说明、作为出资的非货币财产的资产评估报告、出资人之间的关联关系说明、持有百分之五以上股权的出资人近三年的审计报告和子公司的股权结构图；
(7) a description showing that the applicant has the qualifications for the relevant securities business that the subsidiary is to engage in and of its market share in the relevant securities business during the previous year;
（六） 子公司拟任董事长、监事会主席和高级管理人员的任职资格证明文件；
(8) an undertaking issued by the applicant that it will not engage in the same type of business in which it would have a conflict of interest with or compete against the subsidiary and the arrangements with other investors to provide support for the sustained compliant development of the subsidiary;
（七） 申请人具有子公司拟经营相关证券业务资格和最近一年相应证券业务市场占有率的说明；
(9) a description showing that the applicant's net capital during the previous year and its risk control indicators during the most recent 12 months have complied with the specified requirements and a description of the effect that the establishment of the subsidiary will have on such risk control indicators;
（八） 申请人出具的不经营与其子公司存在利益冲突或者竞争关系的同类业务的承诺，以及其他出资人对子公司的持续规范发展提供支持的安排;
(10) a legal opinion issued by a law firm in China; and
（九） 申请人最近一年的净资本、最近十二个月的风险控制指标符合规定要求的说明，以及设立子公司对风险控制指标影响情况的说明；
(11) other documents as required by the CSRC.
（十） 由中国境内律师事务所出具的法律意见书；
Article 7: Subject to the approval of the CSRC, a subsidiary that satisfies the following prudential requirements may apply to expand its scope of business:
（十一） 中国证监会要求的其他文件。
(1) it has been operating continuously for at least five years, has a good reputation and does not have a record of a major violation of laws or regulations during the most recent three years;
第七条经中国证监会批准，符合下列审慎性要求的子公司，可以申请扩大业务范围：
(2) its risk control indicators for the most recent 12 months have continuously been in compliance with the prescribed standards;
（一） 持续经营五年以上，信誉良好，最近三年无重大违法违规记录；
(3) it has the capacity for sustained profitability and relatively strong operation and management capabilities, and its market share in its main business during the previous year has not been less than the medium level in the industry;
（二） 最近十二个月各项风险控制指标持续符合规定标准；
(4) it has a sound corporate governance structure, risk management system and internal control mechanisms; and
（三） 具有持续盈利能力和较强的经营管理能力，最近一年主要业务的市场占有率不低于行业中等水平；
(5) other requirements of the CSRC.
（四） 具备健全的公司治理结构、完善的风险管理制度和内部控制机制；
If a subsidiary satisfies the requirements set forth in this Article, its shareholder(s) may, alternatively, apply to establish another subsidiary to engage in the additional securities business.
（五） 中国证监会的其他要求。
Article 8: When applying to expand its scope of business, a subsidiary shall submit the following documents to the CSRC:
子公司符合本条规定要求的，也可以由其股东申请另设子公司经营增加的证券业务。
(1) an application form signed by its legal representative or authorized representative;
第八条子公司申请扩大业务范围，应当向中国证监会提交下列文件：
(2) the resolution of the shareholders' meeting or shareholders' general meeting on expanding the scope of business;
（一） 法定代表人或者授权代表签署的申请表；
(3) a feasibility study report that shall, at minimum, include the basic particulars of the subsidiary, a description of the organizational and management structure for the new business and its business development plan, etc.;
（二） 股东会或者股东大会关于扩大业务范围的决议；
(4) supporting documentation evidencing the qualifications for their positions of the senior management personnel who are to be responsible for the new business;
（三） 可行性研究报告，内容至少包括：子公司基本情况、新业务的组织管理架构和发展规划等；
(5) a description of the state of the subsidiary's ongoing securities business operations, and its market share and profitability during the previous year;
（四） 负责新业务的高级管理人员的任职资格证明文件；
(6) a description showing that its risk control indicators during the most recent 12 months have complied with the specified requirements;
（五） 子公司的证券业务持续经营情况和最近一年市场占有率及盈利情况的说明；
(7) a description of its corporate governance structure, and risk management, internal control and compliance management systems, and the arrangements to guard against risk
transmission and conflicts of interest arising between the securities company and the subsidiary and between the subsidiary and other subsidiaries controlled by the same securities company after the expansion of the scope of business;
（六） 子公司最近十二个月的风险控制指标符合规定要求的说明；
(8) an undertaking issued by the controlling shareholder that it will not engage in the same type of business in which it would have a conflict of interest with or compete against the subsidiary and the arrangements with other shareholders to provide support for the development of the new business of the subsidiary; and
（七） 子公司的公司治理结构、风险管理、内部控制和合规管理制度的情况说明，以及业务范围扩大后防范证券公司与其子公司之间、受同一证券公司控制的子公司之间出现风险传递和利益冲突的安排；
(9) other documents as required by the CSRC.
（八） 控股股东出具的不与其子公司经营存在利益冲突或者竞争关系的同类业务的承诺，以及其他股东对子公司新业务的发展提供支持的安排；
Article 9: With the exception of wholly-owned subsidiaries, shareholders shall exercise their voting rights at shareholders' meetings or shareholders' general meetings of a subsidiary in proportion to their capital contributions or their shareholdings. The proportion of the members of the board of directors accounted for by the directors recommended by each shareholder and elected to the board shall correspond with the shareholders' respective capital contribution percentages or shareholding percentages.
（九） 中国证监会要求的其他文件。
A subsidiary and its shareholders may not agree upon matters contrary to the foregoing by way of an agreement or other arrangement.
第九条除全资子公司外，子公司的股东会或者股东大会应当由各股东按照出资比例或者持有股份的比例行使表决权，各股东推荐并经选任的董事占董事会成员的比例应当与其出资比例或者持有股份的比例相对应。
Article 10: A subsidiary may not directly or indirectly hold equity or shares of, or in any another manner invest in, its controlling shareholder or another subsidiary controlled by the same securities company.
子公司及其股东不得通过协议或者其他安排约定与前款规定相冲突的事项。
Article 11: A securities company may provide support and service for a subsidiary's compliance management, risk management, auditing, human resources management, information technology and operating services, etc., in accordance with relevant provisions or a contract.
第十条子公司不得直接或者间接持有其控股股东、受同一证券公司控股的其他子公司的股权或股份，或者以其他方式向其控股股东、受同一证券公司控股的其他子公司投资。
Article 12: A securities company may not utilize its controlling position to harm the lawful rights and interests of a subsidiary, the other shareholders of the subsidiary or the subsidiary's customers.
第十一条证券公司可以依照有关规定或者合同的约定，为子公司的合规管理、风险控制、稽核审计、人力资源管理、信息技朮和运营服务等方面提供支持和服务。
Article 13: A subsidiary shall have a sound corporate governance structure and a sound risk management system, compliance management system and internal control mechanisms.
第十二条证券公司不得利用其控股地位损害子公司、子公司其他股东和子公司客户的合法权益。
A reasonable and necessary separating wall system shall be established between a securities company and its subsidiary, and between subsidiaries controlled by the same securities company so as to prevent the possible occurrence of risk transmission and conflicts of interest.
第十三条子公司应当具备健全的公司治理结构，完善的风险管理制度、合规管理制度和内部控制机制。
Article 14: A securities company and its subsidiary shall each separately submit its annual reports, regulatory statements and relevant information to the CSRC, and, additionally, the securities company shall submit to the CSRC the aforementioned information calculated based on the consolidation of the financial and business data of its subsidiaries.
证券公司与其子公司、受同一证券公司控制的子公司之间应当建立合理必要的隔离墙制度，防止可能出现的风险传递和利益冲突。
The net capital and risk control indicators calculated separately by a securities company and its subsidiary and calculated on the basis of consolidated data shall comply with CSRC requirements.
第十四条证券公司及其子公司应当单独向中国证监会报送年度报告、监管报表和有关资料，证券公司还应当在合并计算其子公司的财务及业务数据的基础上向中国证监会报送前述资料。
Article 15: The establishment, change, termination of business, business activities and regulation of subsidiaries shall comply with laws, administrative regulations and CSRC provisions.
证券公司及其子公司单独计算、以合并数据为基础计算的净资本和风险控制指标应当符合中国证监会的要求。
Article 16: These Provisions shall apply to the acquiring by a securities company of control over another securities company by way of a transfer of, or subscription for, equity, or other such means.
第十五条子公司的设立、变更、终止、业务活动及监督管理等事项，应当遵守法律、行政法规和中国证监会的规定。
If laws, administrative regulations, or rules provide for the control of a securities investment fund management company, futures company, securities investment consulting firm, financial consulting firm, direct investment firm or other such company by a securities company, such provisions shall apply. If such laws, administrative regulations, or rules are silent thereon, matters shall be handled mutatis mutandis in accordance herewith.
第十六条证券公司通过受让、认购股权等方式控股其他证券公司的，适用本规定。
If a securities company has acquired control over another securities company through establishment or the transfer of, or subscription for, equity, or other such means prior to the implementation hereof, the requirements specified in Articles 3, 4 and 9 hereof shall be satisfied within two years from the implementation date hereof.
证券公司控股证券投资基金管理公司、期货公司、证券投资咨询机构、财务顾问机构、直接投资机构等公司的，法律、行政法规和规章有规定的，适用其规定，没有规定的参照本规定执行。
Article 17: For the purposes of these Provisions, market share shall be calculated based on the data published by the Securities Association of China and the stock exchanges.
本规定施行之前，证券公司已经通过设立、受让、认购股权等方式控股其他证券公司的，应当在本规定施行之日起两年内达到第三条、第四条和第九条规定的要求。
For the purposes of these Provisions, the term "medium level in the industry" means that a securities company engaging in a certain securities business has a middle ranking based on the indicators for such business.
第十七条本规定所称市场占有率，依据中国证券业协会和证券交易所公布的数据计算。
Article 18: These Provisions shall be effective as of January 1 2008.
clp reference:3700/07.12.28 (2)prc reference:证监机构字 [2007] 345号promulgated:2007-12-28effective:2008-01-01本规定所称行业中等水平，是指从事某项证券业务的证券公司依据该项业务指标的排名居于中位数。
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