Article 41 of the Measures for the Supervision and Administration of Futures Companies stipulates that a futures company shall set up a chief risk officer to supervise and inspect the legal compliance and risk management of its operation and management. When the chief risk officer discovers illegal activities or possible risks such as occupying or misappropriating customer deposits, he shall immediately report to the dispatched office of China Securities Regulatory Commission and the board of directors of the company. A futures company shall have justified reasons for dismissing the chief risk officer and report to the dispatched office of China Securities Regulatory Commission where it is domiciled.

Article 24 of the Regulations on the Administration of Chief Risk Officers of Futures Companies stipulates that if a chief risk officer discovers any of the following illegal acts or major potential risks of a futures company, he shall immediately report to the dispatched office of the China Securities Regulatory Commission where the company is domiciled, and report to the board of directors and the board of supervisors of the company: (1) acts that infringe on the rights and interests of customers, such as allegedly occupying or misappropriating customer deposits; (2) The assets of the futures company are extracted, occupied, misappropriated, sealed up, frozen or used for guarantee. (3) The net capital of the futures company cannot continuously meet the regulatory standards. (4) Major litigation or arbitration of the futures company may lead to major risks; (5) Shareholders interfere in the normal operation of the futures company; (6) Other circumstances stipulated by the China Securities Regulatory Commission. In case of the above situation, the futures company shall make rectification according to the rectification opinions of the dispatched office of the China Securities Regulatory Commission where the company is domiciled. The chief risk officer shall cooperate with the rectification and report the rectification to the dispatched office of China Securities Regulatory Commission where the company is domiciled.