The following are excerpts from the Detailed Rules for the Implementation of Integrity Practice of Securities Institutions and Their Staff issued by China Securities Industry Association

Article 4 of the Detailed Rules for the Implementation of Integrity Practice of Securities Institutions and Their Staff

Securities institutions shall bear the main responsibility for the construction of integrity culture and the risk prevention and control of integrity practice, and shall specify the requirements for integrity practice in a special chapter in the company's important system. Establish an internal control system covering all businesses and all links, and incorporate it into the whole internal control system, formulate a specific and effective pre-risk prevention system, in-process control measures and post-event accountability mechanism, clarify the clean culture construction and clean management responsibilities of directors, supervisors, senior managers and managers at all levels, and keep relevant papers on the prevention and control of clean business risks.

article 5

the directors, supervisors, senior managers and managers and staff at all levels of a securities operating institution shall fully understand the relevant provisions on the practice of honesty, implement the requirements for the practice of honesty, and bear the corresponding responsibilities for the practice of honesty.

the board of directors of securities institutions decides the management objectives of clean business and assumes responsibility for the effectiveness of clean business management.

the senior managers of securities institutions are responsible for implementing the management objectives of clean business and taking responsibility for clean operation. The main person in charge of a securities operating institution is the first person responsible for implementing the duty of clean business management. The responsible persons at all levels should strengthen the clean business management of the staff of their subordinate departments, branches or subsidiaries and assume corresponding management responsibilities within the scope of their duties.

the board of supervisors or supervisors shall supervise the performance of directors and senior management personnel in the management of honesty.

Article 8

Securities institutions shall strengthen the management of paid payment by third-party institutions or individuals. Entrusting or hiring a third-party organization or individual to provide services such as investment consultant, financial consultant, product consignment, professional consultation, etc., shall specify the qualifications of the third party, sign a service agreement in advance, and perform internal examination and approval procedures. The agreement shall clearly stipulate the service content, service period and cost standard, etc. If the relevant provisions clearly require the qualifications of third parties, they shall also comply with their provisions.

a securities operating institution and its staff shall not sign an agreement on fictitious service subject or service content, or use the assets of the institution or clients to pay consulting fees, consulting fees, service fees and other fees to a third party who does not have relevant professional ability or provide corresponding services.

Article 1

A securities operating institution shall formulate a code of honest practice covering all its staff, and incorporate the honest practice of staff into the personnel management system. In case of employment, registration of employees, follow-up management, promotion, promotion, resignation, assessment, auditing, etc., it shall inspect and evaluate its honest practice.

Article 11

Securities operating institutions should strengthen the construction of integrity culture, carry out integrity training and education covering all staff every year, ensure that staff are familiar with the relevant provisions on integrity, raise their awareness of integrity, and convey the corresponding integrity requirements to new employees when they take up their posts, adjust their posts and promote them, and ask them to sign integrity commitments.