FIA has submitted comments to the China Securities Regulatory Commission’s consultation paper on draft Measures for the Supervision and Administration of Futures Companies.
FIA praises the CSRC’s continuous efforts to establish a comprehensive framework for China’s futures industry and its efforts in publishing several draft regulations for public consultation. FIA also notes that the draft measures refine and update regulatory requirements on futures companies, including allowing these companies to expand their scope of business and improve governance and supervision over key personnel and entities.
FIA makes three key observations and suggestions.
First, FIA suggests that the measures give the CSRC statutory power to authorise foreign shareholders other than financial institutions. This would recognise that multi-national financial groups have different organisational structures for reasons such as regulatory, tax and other commercial reasons.
Second, FIA recommends that the measures expressly permit futures companies to share relevant data with offshore entities under certain circumstances, always in accordance with applicable PRC laws and regulations and subject to client consent where client information is involved.
Third, FIA notes that the measures do not specifically regulate cross-border activities, such as offshore brokerage business of onshore futures companies, and puts forth certain points for consideration when the CSRC formulates regulations for such activities.
- Operational and Regulatory Guidance