The Shanghai Stock Exchange (SSE) has recently issued a notice to urge its members to reinforce client management. According to the notice, members are required to report companies' implementation of relevant issues concerning client transaction management, customer service and investor education. Besides, members are also encouraged to submit self-recommendations on their unique and effective practices in client management.
It is the second time for the SSE to call on its member for self-inspection on client management since it published and implemented last year the "Detailed Rules on Members' Management of Clients' Securities Trading" and the "SSE Guidance for Real-time Supervision on Abnormal Securities Trading" (the two rules).
The two rules are promulgated by the SSE in succession in May 2008, with an aim to strengthen its members' client management and give full play of their self-regulatory functions on the securities market.
After more than one year's implementation of the two rules, the SSE has formed a general picture of its members' client management through self-inspection and on-site examination. Despite their completion of rules and systems, members acted differently while executing them. It will be a long-term task to improve the level of members' client management. The SSE asks its members to continuously bring the two rules into their concrete work. First, they should improve their capabilities in management of client transaction for discovering abnormal trading, as well as their awareness of taking initiatives to regulate and restrict client transaction. Second, they should upgrade their levels of customer service to serve the benefits of their clients by stepping up efforts on risk alerts, providing products meeting their clients' knowledge and risk-bearing capability, and improve their abilities in resolving disputes with their clients. Third, to satisfy the requirements by the SSE on investor education, they should conduct investor orientation more effectively by perfecting their organizational structures and enriching educational content.