China Securities Regulatory Commission, Ministry of Justice and Ministry of Finance, Opinions on Strengthening Oversight of the Professional Integrity of Intermediary Firms Under the Registration System

Promulgated: May 31, 2022

Effective: as of date of promulgation

Main contents: A securities company may not directly link the remuneration of its professional personnel to the revenue of the projects they are involved in or bring in, may not engage in investment banking business by excessive incentivization such as responsibility for all of business and shall expressly specify in employment contracts and its internal systems that accountability measures may be taken against professional personnel who violate professional integrity laws or regulations, such as requiring them to return all or part of their bonuses relating to their violations or halting their eligibility for long-term incentives. The foregoing shall apply mutatis mutandis to other intermediary firms such as accounting firms and law firms. (Article 6).