Measures for the Administration of Risk Supervision Indicators of Futures Companies Chapter V Supervision and Administration
Article 29 If a futures company fails to submit a risk supervision report on schedule or the risk supervision report submitted contains false records, misleading statements or major omissions, the agency of the China Securities Regulatory Commission shall require the futures company to submit it within a time limit or make supplementary corrections. If a futures company fails to submit or make supplementary corrections within the time limit, the agency of the China Securities Regulatory Commission, where the company is domiciled, shall conduct on-site inspection of the company. If it is found that a futures company violates the accounting standards for business enterprises and the relevant provisions of these Measures, it may be determined that the risk supervision indicators have not reached the prescribed standards. Article 30 If the risk supervision index of a futures company reaches the early warning standard, it will enter the risk early warning period. The dispatched office of the China Securities Regulatory Commission shall, within five working days, verify the situation and reasons why the company's risk supervision indicators touch the early warning standard, evaluate the company's impact, and take the following measures as appropriate: (1) issue a letter of concern to the company and send a copy to its major shareholders; (2) Holding supervisory talks with the company's senior management and asking them to optimize the level of the company's risk supervision indicators; (3) When the company needs to make major business decisions, it shall submit an interim report to the dispatched office of the China Securities Regulatory Commission where the company resides at least five working days in advance, explaining the impact of related businesses on the company's financial status and risk supervision indicators; (4) Ordering the company to increase the frequency of internal compliance inspection and submit compliance inspection reports. Article 31 If the risk supervision index of a futures company is better than the early warning standard for three consecutive months, the risk early warning period will end. Article 32 If the risk supervision index of a futures company fails to meet the prescribed standards, the agency of China Securities Regulatory Commission shall conduct on-site inspection of the company within 2 working days to verify the situation and reasons for failing to meet the prescribed standards, and order the futures company to make rectification within a time limit, which shall not exceed 20 working days at the longest. Article 33 After rectification, if the risk supervision indicators reach the prescribed standards, the futures company shall report to the dispatched office of the China Securities Regulatory Commission where the company is domiciled, and the dispatched office of the China Securities Regulatory Commission shall conduct inspection and acceptance. If the risk supervision indicators of a futures company meet the prescribed standards, the dispatched office of the China Securities Regulatory Commission shall, within 3 working days from the date of acceptance, lift the relevant measures taken against the futures company. Article 34 If a futures company fails to make corrections within the time limit or the risk supervision indicators still fail to meet the prescribed standards after rectification, the China Securities Regulatory Commission and its dispatched offices may take supervision measures according to Article 56 of the Regulations on the Administration of Futures Trading.