China Securities Regulatory Commission, Provisions for the Regulation of Branches of Securities Companies (Trial Implementation)

中国证券监督管理委员会证券公司分公司监管规定 (试行)

July 09, 2008 | BY

clpstaff &clp articles &

Restrictions set on securities companies' business scope.

Clp Reference: 3700/08.05.13 Promulgated: 2008-05-13 Effective: 2008-05-13

Issued: May 13 2008
Effective: as of date of issuance

Main Contents: A branch shall engage in business within the scope authorized by the securities company, and may not operate beyond its authorized scope.

A securities company may authorize a branch to engage in the following business:

(1) managing the securities company's securities business offices within a certain territory;

(2) operating the securities company's securities underwriting and sponsorship business within a certain territory;

(3) as the securities company's dedicated establishment engaging in securities business for own account, engaging in securities business for the securities company's own account;

(4) as the securities company's dedicated securities asset management establishment, engaging in securities asset management business; and

(5) other securities company businesses as approved by the CSRC (Article 4).

A branch may not directly engage in the business of a securities business office. A branch that has been authorized to engage in securities business for the account of the securities company or securities asset management business may not engage in other businesses.

A securities company may not authorize one branch to engage in different businesses that present a conflict of interest. If a securities company authorizes a branch to engage in securities business for the securities company's own account or in securities asset management business, the head office of the company may no longer engage in such business or authorize another branch to do so (Article 5).

Related Legislation: PRC Company Law (Amended) PRC Securities Law (Amended) Regulations for the Oversight of Securities Companies clp reference:3700/08.05.13prc reference:证监会公告 [2008] 20 号promulgated:2008-05-13effective:2008-05-13

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