Regulatory Alerts2018-03-19
Instructions Regulating the Dealing of Financial Services Companies at Foreign Stock Exchanges
The Securities Commission issued these instructions to regulate financial services companies operating at foreign stock exchanges, establishing licensing criteria including minimum paid-up capital and unconditional bank guarantees. Licensed entities must maintain segregated client funds, obtain explicit transaction authorizations, and adhere to strict operational procedures for activities such as financial brokerage, investment management, trusteeship, and advisory services. The framework mandates comprehensive client agreements, periodic financial reporting, external auditing rights, and a three-month compliance transition period for existing companies.
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