Legislation roundup: SPC interpretation, CIRC investment circular and securities company provisions
February 07, 2013 | BY
clpstaff &clp articles &The Supreme People's Court has released an interpretation on employment contracts and the China Insurance Regulatory Commission has produced a circular on investment management capabilities
Employment
Supreme People's Court, Interpretation on Several Issues Concerning the Application of the Law in the Trial of Employment Disputes (4)
If financial compensation has not been provided in the employment contract but the employee has performed their non-compete obligations, they may request for compensation of 30% of their average monthly wage of the 12 months before the termination or end of the employment contract.
PRC Employment Contract Law (Revised), Mar/Apr 2013
Insurance
China Insurance Regulatory Commission, Circular on Matters Relevant to Strengthening and Improving the Establishment of the Investment Management Capabilities of Insurance Institutions
The Circular specifies the seven types of investment management capabilities (investment capabilities in stocks, unsecured bonds, equity and immovable property, innovation capabilities in infrastructure investment plan products and immovable property investment plan products, and capabilities in the application of derivatives) that an insurance company is required to file with the CIRC for the record if it is to engage in the relevant investment management business. At least two persons should be assigned to be responsible for the risks of each type of investment capabilities filed.
See the digest for more details.
Further reading
Tentative Measures for the Administration of the Application of Insurance Capital
Risk Control Guidelines for Use of Insurance Funds (Trial Implementation), Sep 2004
Capital markets
China Securities Regulatory Commission, Provisions for the Regulation of Branches of Securities Companies (Draft for Comments)
The Draft lifts the restrictions on the number and geographical locations of the branches of securities companies. As long as they comply with the local requirements, securities companies may set up branches anywhere in China.
See the digest for more details.
Further reading
Trial Provisions for the Establishment of Subsidiaries by Securities Companies (Revised), Nov/Dec 2012
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