In order to standardize the behavior of branches of securities companies, protect the rights and interests of investors and maintain the market order, China Securities Regulatory Commission issued the Regulation on Supervision of Branches of Securities Companies on 20 19 (hereinafter referred to as the Regulation). It is clearly stipulated that the establishment of branches of securities companies needs to be approved by the state and local financial supervision departments, and branches should carry out business activities in accordance with the approved matters and fulfill the filing procedures in time. At the same time, the regulations require securities companies to formulate branch management systems, clarify the internal management responsibilities, authorities and business processes of branches, and ensure coordination and communication between companies and branches. The Regulations also emphasize the risk prevention and compliance management requirements of branches. Branches must be equipped with qualified and sufficient staff, perform their duties according to the company's risk management requirements, implement the internal management system formulated by the headquarters company, strengthen the monitoring of business and risks, and report major risks and problems of branches in time. In addition, the regulations also require branches to disclose information according to law, accept the supervision and inspection of national and local financial supervision departments and provide necessary assistance and cooperation. If the branch is illegal or seriously untrustworthy, it may face punishment or even cancel the branch.
How do branches of securities companies protect investors' rights and interests? When conducting business activities, branches of securities companies must abide by laws, regulations and industry norms, clarify internal management responsibilities, authorities and business processes, equip with sufficient qualified personnel, and strengthen risk prevention and compliance management. In addition, branches of securities companies also need to disclose information, accept supervision and inspection by regulatory agencies according to law, report major risks and problems in a timely manner, and protect the legitimate rights and interests of investors.
The Regulation on the Supervision of Branches of Securities Companies requires that the establishment of branches of securities companies should be approved by the state and local financial supervision departments, and branches should abide by laws, administrative regulations, rules and regulations, be equipped with qualified personnel, implement the internal management system formulated by the head office, and accept the supervision of the superior supervision department. In addition, branches need to strengthen risk prevention and compliance management to protect the legitimate rights and interests of investors.
Legal basis:
Article 6 of the Regulation on the Supervision of Branches of Securities Companies shall abide by laws, administrative regulations and the rules and regulations of China Securities Regulatory Commission and national and local financial supervision departments, clarify internal management responsibilities, authorities and business processes, perform duties according to the company's risk management requirements, and implement the internal management system formulated by the head office.