Important Measures
FSC amends "Regulations Governing Responsible Persons and Associated Persons of Securities Firms" and "Regulations Governing Responsible Persons and Associated Persons of Futures Commission Merchants"
2022-11-16
To improve the management of securities firms and futures commission merchants and get them to better implement corporate governance, the FSC on 28 October 2022 amended the "Regulations Governing Responsible Persons and Associated Persons of Securities Firms" and "Regulations Governing Responsible Persons and Associated Persons of Futures Commission Merchants." Key points of the amended Regulations are as follows:
1.A chairperson of the board is required to have good moral character, have the ability to effectively lead and manage the enterprise, have a certain level of education, and have work experience related to securities, futures, and financial institutions.
2.New provisions impose upon a board of directors the responsibility to appoint and supervise managerial officers, and to oversee the accountability of managerial officers and set up related systems.
3.New provisions require securities firms and futures commission merchants to conduct regular reviews of the concurrent holding of more than one position by responsible persons, the results of which shall serve as an important reference to determine whether the concurrently held positions will be maintained or reduced in number.
4.With reference to legal provisions governing banks and insurance enterprises, newly added provisions require that when a natural person or a juristic person, or their related party, acts as a director (or supervisor) of a securities firm or futures commission merchant and concurrently acts as a director (or supervisor) of another financial institution, a conflict of interest shall in principle be presumed to exist, and a person who fails to resolve a conflict of interest without justification within a prescribed period of time shall be dismissed. The preceding does not apply to the government, or to a securities firm or futures commission merchant that is wholly owned, directly or indirectly, by the government.
5.Newly added provisions allow a securities firm or a futures commission merchant to apply, in accordance with its industry association's directions governing on-the-job training, for permission to run its own on-the-job training program.
1.A chairperson of the board is required to have good moral character, have the ability to effectively lead and manage the enterprise, have a certain level of education, and have work experience related to securities, futures, and financial institutions.
2.New provisions impose upon a board of directors the responsibility to appoint and supervise managerial officers, and to oversee the accountability of managerial officers and set up related systems.
3.New provisions require securities firms and futures commission merchants to conduct regular reviews of the concurrent holding of more than one position by responsible persons, the results of which shall serve as an important reference to determine whether the concurrently held positions will be maintained or reduced in number.
4.With reference to legal provisions governing banks and insurance enterprises, newly added provisions require that when a natural person or a juristic person, or their related party, acts as a director (or supervisor) of a securities firm or futures commission merchant and concurrently acts as a director (or supervisor) of another financial institution, a conflict of interest shall in principle be presumed to exist, and a person who fails to resolve a conflict of interest without justification within a prescribed period of time shall be dismissed. The preceding does not apply to the government, or to a securities firm or futures commission merchant that is wholly owned, directly or indirectly, by the government.
5.Newly added provisions allow a securities firm or a futures commission merchant to apply, in accordance with its industry association's directions governing on-the-job training, for permission to run its own on-the-job training program.
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- Update： 2022-11-16
