Provisions for the Administration of the Provision of Financial Information Services in China by Foreign Organisations

Order of the SCIO, Mofcom and SAIC No.7

(Promulgated by the State Council Information Office, Ministry of Commerce and State Administration for Industry and Commerce on April 30 2009 and effective as of June 1 2009.)

Part One: General provisions

Article 1: These Provisions have been formulated pursuant to the State Council, Decision on Amending the 《State Council, Decision on Instituting Administrative Licensing for Administrative Examination and Approval Items that Truly Need to be Retained》 (Order of the State Council No.548) in order to facilitate the provision of financial information services in China in accordance with the law by foreign organisations, satisfy the demand for financial information of clients in China and promote the healthy and orderly development of the financial information service industry.

Article 2: These Provisions shall govern the provision of financial information services in China by foreign organisations.

For the purposes of these Provisions, the term “foreign organisations” means foreign providers of financial information services.

For the purposes of these Provisions, the term “financial information services” means the services of providing information and/or financial data that could have an impact on financial markets to clients that engage in financial analysis, financial trading, financial decision making or other financial services. Such services are different from the services provided by press agencies.

Article 3: China ensures in accordance with the law the lawful rights and interests of foreign organisations that provide financial information services in China and facilitates the provision in accordance with the law of financial information services by such organisations.

A foreign organisation that provides financial information services in China shall comply with laws, regulations and rules of China.

Part Two: Examination and approval

Article 4: The State Council Information Office is the regulatory authority that oversees the provision of financial information services in China by foreign organisations. Foreign organisations that wish to provide financial information services in China shall require the approval of the State Council Information Office.

A foreign organisation that has not received the approval of the State Council Information Office may not provide financial information services in China.

Article 5: A foreign organisation applying to provide financial information services in China shall satisfy the following conditions:

(1) having the appropriate lawful qualifications in its residing country (region);

(2) having a good reputation in the financial information services sector;

(3) having a clear financial information services business;

(4) having good means of transmission and technical services; and

(5) other conditions as specified in laws and regulations of China.

Article 6: A foreign organisation wishing to provide financial information services in China shall apply and submit the following materials to the State Council Information Office:

(1) a written application signed by the organisation's person in charge;

(2) a description of the organisation;

(3) a copy of the document evidencing the organisation's establishment in its residing country (region);

(4) an overview of the products, columns, explanations, information sources and samples relating to the financial information services that it proposes to provide; and

(5) materials explaining its means of transmission and technical services.

Article 7: The State Council Information Office shall render its decision on whether or not to grant approval within 20 working days from the date of acceptance of the application. If it grants approval, it shall issue an approval document, and if it withholds approval, it shall notify the applicant thereof in writing and give the reasons therefor.

Article 8: A foreign organisation that provides financial information services in China shall sign written contracts with its clients.

Within 30 days after first receiving the approval document specified in Article 7 hereof, a foreign organisation shall report to the State Council Information Office, for the record, any contracts that it executed with domestic clients before obtaining the approval document. Within 30 days after executing or terminating any contract with a domestic client, a foreign organisation that has obtained approval shall report the same to the State Council Information Office for the record. The particulars of such record filing shall include the information products that are the subject of the contract, the method of provision, information on the identity of the client, the term of the contract, etc. In the event of a change in the recorded particulars, the foreign organisation shall amend its record with the State Council Information Office within 30 days after the change.

Article 9: If a foreign organisation providing financial information services in China intends to change its name, type of products or means of transmission, it shall carry out amendment procedures with the State Council Information Office at least 30 days in advance.

Article 10: If a foreign organisation intends to terminate its provision of financial information services in China, it shall inform the State Council Information Office in writing before the termination of its business and carry out deregistration procedures with the State Council Information Office within seven days from the date on which its business terminated.

Article 11: The approval document for provision of financial information services in China of a foreign organisation shall be valid for two years. If the foreign organisation's approval document is to expire and it intends to continue providing services, it shall apply to the State Council Information Office for renewal of its approval document on the strength of its existing approval document and the materials specified in Article 6 hereof at least 30 days before the expiration of its approval document. The State Council Information Office will handle matters in accordance with Article 7 hereof.

Article 12: The State Council Information Office shall protect in accordance with the law the commercially valuable information contained in the materials submitted by a foreign organisation in accordance herewith. The aforementioned information shall be used solely for oversight purposes.

Part Three: Investment in and establishment of enterprises

Article 13: A foreign organisation wishing to invest in and establish a financial information service enterprise in China shall apply to the State Council's department in charge of commerce in accordance with relevant laws of China and submit the following materials:

(1) the approval document from the State Council Information Office;

(2) a written application for the investment in and establishment of a financial information service enterprise in China signed by the organisation's person in charge;

(3) the contract for and the articles of association of the financial information service enterprise signed by the legal representatives or authorised representatives of the investors;

(4) the list of the members of the board of directors of the proposed financial information service enterprise and their credentials;

(5) the enterprise name pre-approval notice issued by the administration for industry and commerce; and

(6) other documents as specified in laws and regulations of China.

Article 14: The State Council's department in charge of commerce shall render its decision on whether or not to grant approval within 30 working days from the date of acceptance of the application. If it grants approval, it shall issue an Approval Certificate for a Foreign-invested Enterprise, and if it withholds approval, it shall notify the applicant thereof in writing and give the reasons therefor.

Article 15: A foreign organisation that has received approval to invest in and establish a financial information service enterprise shall apply in accordance with the law to the administration for industry and commerce for registration of establishment within 30 days from the date of receipt of the Certificate of Approval for Establishment of Enterprises with Foreign Investment.

If the registered particulars of a foreign-invested financial information service enterprise change or if the business of such enterprise is terminated, amendment of registration or cancellation of registration shall be carried out in accordance with the law.

Part Four: Oversight

Article 16: A foreign organisation shall provide financial information services strictly within its approved scope of business. The State Council Information Office shall conduct monitoring inspections of the provision of financial information services by foreign organisations, and foreign organisations shall co-operate therewith.

Article 17: The financial information provided to clients in China by foreign organisations may not contain the following content:

(1) content that violates the basic principles of the PRC Constitution;

(2) content that undermines the unity, sovereignty and territorial integrity of China;

(3) content that jeopardises China's state security or harms state interests;

(4) content that violates the China's ethnicity or religious policies, undermines inter-ethnic unity or propagates cult teachings;

(5) content that disseminates false financial information, disrupts the economic order or undermines economic stability or the stability of financial or capital markets or of society;

(6) content that propagates obscenity, pornography, violence or terror, or incites the commission of crimes;

(7) content that insults or slanders a third party or infringes upon the lawful rights and interests of a third party; or

(8) other content prohibited by laws, regulations and rules of China.

Article 18: The State Council Information Office shall synchronously scrutinise the financial information provided in China by foreign organisations, and if it discovers that it contains any of the contents specified in Article 17 hereof, it will investigate and handle the matter. A foreign organisation shall provide the necessary conditions to the State Council Information Office free of charge to enable it to synchronously scrutinise the financial information that it provides.

Article 19: A foreign-invested financial information service enterprise established in China shall engage in business activities strictly within its registered scope of business, and may not engage in news gathering business or press agency business.

Article 20: If a domestic financial information client discovers that financial information provided by a foreign organisation contains any of the content specified in Article 17 hereof, it shall report the same to the State Council Information Office and may not use or transmit such information.

Part Five: Legal liability

Article 21: If a foreign organisation violates these Provisions in providing financial information services in China, the State Council Information Office and relevant departments shall order it to rectify the matter, give it a warning and impose a fine. If it violates other laws or regulations, the matter shall be handled by the relevant administrative or judicial authority in accordance with the law.

Article 22: If financial information provided by a foreign organisation and transmitted to the public by a domestic financial information client contains any of the contents specified in Article 17 hereof, the State Council Information Office and other relevant departments shall impose penalties in accordance with the law.

Article 23: If a member of the working personnel of the State Council Information Office is derelict in his/her duties, abuses his/her authority, practises favouritism by committing fraud or accepts bribes, resulting in serious consequences, and the same constitutes a criminal offence, his/her criminal liability shall be pursued in accordance with the law. If a criminal offence is not constituted, he/she shall be disciplined in accordance with the law.

Part Six: Supplementary provisions

Article 24: These Provisions shall apply mutatis mutandis to the provision of financial information services in the mainland by relevant organisations from the Hong Kong Special Administrative Region, Macao Special Administrative Region and Taiwan.

Article 25: These Provisions shall be effective as of June 1 2009. In the event of a discrepancy between these Provisions and provisions concerning financial information services issued by relevant departments before the issuance hereof, these Provisions shall prevail.

Foreign organisations that received approval to provide financial information services in China before the implementation of these provisions and that intend to continue to provide such services in China shall apply to the State Council Information Office on the strength of the materials specified in Article 6 hereof within 30 days from the effective date hereof. Such organisations shall be permitted to continue providing such services until the date the State Council Information Office renders its decision pursuant to Article 7 hereof.