Following consultation, the China Securities Regulatory Commission (CSRC) has now finalised its rules to regulate the provision of futures investment consultancy services by futures companies. The Trial Measures on the Futures Investment Consultancy Business of Futures Companies (《期货公司期货投资咨询业务试行办法》, the “Trial Measures”), which become effective from 1 May 2011, are in substantially the same form as the consultation draft released by the CSRC in February 2011.
The Trial Measures provide for relevant qualification requirements both at the entity level and at the individual practitioner level and set out a number of requirements on conduct of business, avoidance of conflicts of interest and other compliance procedures. In preparation for the coming into effect of the Trial Measures, futures companies interested in applying for the relevant qualification should begin formulating the requisite compliance policies and structuring Chinese walls necessary to meet the requirements of the Trial Measures.
Please refer to our alert dated 28 February 2011 for a high-level introduction of the Trial Measures.
If you would like to discuss anything regarding this Alert please contact Fang Jian (Shanghai), Nicola Mayo (Shanghai), Simon Poh (Shanghai), or Betty Yap (Hong Kong)
