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The SZSE recently released the new edition of the Member Management Rules after revision with the approval of the China Securities Regulatory Commission (CSRC). The revision, with improving fundamental systems, guarding against financial risks and strengthening members’ responsibilities as the focuses, put forth effort to guard the market access, enhance supervision of the whole transaction process, and implement relevant requirements on deepening the reform of the capital market on all sides.
The SZSE has always been attaching importance to and continuing to strengthen the system of member management rules. The Member Management Rules are fundamental rules that the SZSE adopts to manage members and the guide and core of the member self-discipline management rules system. Since its revision and implementation in 2015, the Member Management Rules have played a positive leading role in member compliance and risk control, investor education and suitability management, customer transaction behavior management and member technology system building. In recent years, with significant changes in market regulation and industry development, member regulation is faced with new circumstances, new challenges and new requirements. Against that backdrop, the SZSE revised relevant content of the Member Management Rules according to the work arrangements of the CSRC on deepening the reform of the capital market on all sides, to connect to superior rules and further improve basic policies.
The revision focused on the following aspects. First, adhering to the bottom-line thinking in guarding against financial risk, the SZSE added principles on compliance and risk control of securities trading and relevant business of members, supplemented provisions on handling of abnormal situations in majors transactions, laid down requirements on internal control and risk management of cross-border business and so on, and strengthened members’ obligations to forestall transaction risk and maintain normal transaction order of the securities market. Second, the SZSE strengthened supervision of the whole transaction process, further specified members’ responsibilities, gave full play to members’ role as “gatekeepers” of the securities market, and required members to enhance management of customer transaction behaviors, ensure they know customers before the event, monitor the transaction during the event and report abnormalities after the event. In the meantime, the SZSE stipulated that members should fulfill the management responsibility of the marketing units provided to others and strengthen forestalling of transaction risk from the source, making members truly become the first line of defense to prevent abnormalities and contain violations. Third, the SZSE continued to strengthen investor protection, by implementing the Measures on Suitability Management for Securities and Futures Investors, laying down relevant requirements on product grading and investor suitability matching, and improving investor access condition factors. In the meantime, based on practical requirements of regulation, the SZSE required members to provide relevant support and convenience for customers’ execution of rights and protect investors’ legal rights and interests.
The stable reform and development of the capital market cannot be achieved without the support of market players of different types. The SZSE will implement in depth General Secretary Xi Jinping’s important instructions and comments on capital market, follow the requirements of the CSRC of “Four Respects (respecting the market, rule of law, profession and risks) and “One Resultant Force” (seeking support from all sectors of society)”, unswervingly deepen reform, focus on shoring up weaknesses in basic policies, continue to enhance the capability to forestall and resolve financial risks, improve regulation efficiency and service level, build consensus and form resultant force with members, strive to establish a capital market ecosystem that matches the pilot demonstration area of socialism with Chinese characteristics and build a standard, transparent, open, dynamic, resilient capital market.
