Securities brokers can only accept the entrustment of securities companies and engage in activities such as customer solicitation and customer service on behalf of securities companies. The entrustment contract shall specify the following items:
(a) the name of the securities company and the name of the securities broker;
(two) the agency authority of the securities broker;
(3) the agency period of a securities broker.
(4) the securities business department served by securities brokers.
(5) the geographical scope of securities brokers' practice.
(6) Basic code of conduct for securities brokers.
(7) Calculation and payment methods of securities brokers' remuneration.
(eight) the rights and obligations of both parties;
(9) Liability for breach of contract.
The geographical scope of securities brokers' practice should be adapted to the management ability of the securities companies they serve, the customer management level of the securities business department and the reasonable area of customer service.
Article 7 A securities company shall provide securities brokers with not less than 60 hours of pre-job training, including not less than 20 hours of training on laws, regulations and professional ethics. Securities companies should test the effect of pre-job training for securities brokers.
Article 8 A securities company shall sign an entrustment contract with a securities broker, conduct pre-practice training and pass the examination, and then go through the practice registration with the China Securities Association (hereinafter referred to as the Association). Practice registration items include the name of the securities broker, ID number, agency authority, agency term, securities business department, practice area and company inquiry and complaint telephone number, etc.
After handling the practice registration of securities brokers, a securities company shall print the certificate of securities brokers in accordance with the provisions of the association, affix the official seal of the company and issue it to securities brokers. Securities broker certificates shall be uniformly printed and numbered by the Association.
Article 9 In case of any change in the matters specified in the certificate of securities broker, the securities company shall withdraw the certificate, change the personnel's practice registration with the Association, and handle the printing and issuance of new certificates in accordance with the provisions of the second paragraph of Article 8 of these Provisions.
Where a securities company terminates the entrustment relationship with a securities broker, it shall, within 5 working days from the date of termination of the entrustment relationship, withdraw its securities broker certificate and cancel its practice registration. If a securities company fails to withdraw the certificate of securities broker for some reason, it shall announce that the certificate is invalid through newspapers, company websites and other media designated by the China Securities Regulatory Commission within 10 working days from the date of termination of the entrustment relationship. A securities broker shall practice within the scope stipulated in Article 11 of these Provisions and authorized by a securities company, and shall not commit any of the following acts:
(1) Handling account opening, account cancellation, transfer, securities subscription, trading or fund access, transfer and inquiry for customers;
(2) Providing or disseminating false or misleading information to clients, or inducing clients to buy or sell securities unnecessarily.
(3) Agreeing with customers to share the investment income, and making a commitment to the compensation for the customer's securities trading income or securities trading loss.
(four) to attract customers by improper means such as belittling competitors and entering the business premises of competitors;
(5) divulging the business secrets or personal privacy of customers;
(six) to provide intermediary, guarantee or other convenience for financing between customers;
(seven) to provide illegal service places or convenient transactions for customers, or to engage in customer solicitation and customer service activities through the Internet and news media;
(eight) entrust others to engage in customer recruitment, customer service and other activities;
(nine) other acts that damage the legitimate rights and interests of customers or disrupt the market order. A securities company shall establish and improve the support system for the practice of securities brokers, and provide relevant materials and information required for the practice of securities brokers.
Article 16 A securities company shall establish and improve an information inquiry system to ensure that customers can inquire about the name, agency authority, agency term, securities business department, practice area, certificate number and other information of securities brokers at any time through the site, telephone or the Internet, and can also check the photos of securities brokers through the site or the Internet.
A securities company shall provide customers with monthly or quarterly information such as the transaction status and asset balance of customer accounts recruited and served by securities brokers through letters, emails, short messages or other appropriate means. Where there are other agreements between a securities company and its customers, such agreements shall prevail.
Article 17 A securities company shall establish and improve the system of customer return visits, and designate personnel to make regular return visits to customers recruited and served by securities brokers through interviews, telephone calls, letters or other means, so as to understand the practice of securities brokers and make complete records. The person in charge of customer return visit shall not engage in customer solicitation and customer service activities.
Article 18 A securities company shall establish and improve an abnormal trading and operation monitoring system, and adopt technical means to effectively monitor the customer accounts recruited and served by securities brokers. If any abnormal situation is found, the reason shall be found out immediately and handled according to the regulations.
Article 21 If a securities broker violates the internal management system, self-discipline rules or the provisions of laws, administrative regulations, regulatory agencies and administrative departments in the course of practicing, the securities company shall investigate his responsibility in accordance with the relevant provisions and entrustment contracts, and report to the agency dispatched by the China Securities Regulatory Commission where the company resides and the securities business department where the securities broker serves. If a securities broker no longer meets the prescribed practice conditions, the securities company shall terminate the entrustment contract.
If the securities broker's behavior is suspected of violating laws, administrative regulations, the provisions of regulatory agencies and administrative departments, the securities company shall report to the relevant regulatory agencies or administrative departments in a timely manner; Suspected of a criminal offence, the securities company shall promptly report to the relevant judicial organs.
Article 22 A securities company shall establish and improve the files of securities brokers, so as to leave traces in the practice of securities brokers. The archives of securities brokers shall record the basic personal information of securities brokers, the qualification status of securities practitioners, the agency authority, the agency term, the securities business department served, the scope of the practice area, the pre-practice and follow-up vocational training, the practice activities, the handling of customer complaints, the handling of violations of laws and regulations and behaviors beyond the agency authority, and the performance appraisal.
Article 23 The annual report shall at least include the following contents:
(a) the operation and improvement of the management system, internal control mechanism and technical system related to securities brokers this year;
(2) Changes in the number of securities brokers this year, and the number of securities brokers and their distribution in the securities business department at the end of the reporting period;
(3) the implementation of the entrustment contract of securities brokers, the payment of securities brokers' remuneration and the protection of legitimate rights and interests this year;
(4) The contents, methods, time, number of trainees and the training plan for the next year of the pre-practice training and follow-up vocational training for securities brokers this year;
(5) The customer complaints and disputes related to securities brokers this year and their handling, the matters that may cause centralized complaints at present, the reasons for their formation and the proposed solutions.
Article 24 The Association is responsible for formulating relevant self-discipline rules, organizing or handling the qualification examination, registration, certificate printing and subsequent vocational training of securities brokers, and can supervise and inspect the securities brokers entrusted by securities companies and their practice behaviors, and take disciplinary actions against securities companies and securities brokers who violate the self-discipline rules.
The association establishes a database of securities brokers to provide the public with the inquiry service of the registration information of securities brokers.
Article 25 The China Securities Regulatory Commission and its dispatched offices shall supervise and manage securities brokers according to law. Securities brokers who violate laws and regulations are subject to regulatory measures or administrative penalties according to law. Securities companies that violate the rules or lead to securities brokers' violation of laws and regulations, a large number of complaints from customers, major disputes and unstable events may be required to increase the calculation ratio of risk capital reserve for brokerage business and the calculation amount of risk capital reserve for branches of securities business departments, and take regulatory measures such as limiting the size of their securities brokers or impose administrative penalties according to law.
The untrustworthy information of securities companies and securities brokers is recorded in the integrity information database system of securities and futures markets.
Article 26 The relevant management system of securities brokers shall at least include the qualification management of securities brokers, management of entrustment contracts, pre-practice and follow-up vocational training, certificate management, code of conduct, remuneration calculation and payment methods, and the matters specified in Articles 15 to 22 of these Provisions. The implementation plan of starting the securities broker system should at least include the selection criteria and determination procedures of the securities business department to implement the system and the basic steps to implement the system.
Twenty-seventh securities companies engaged in securities brokerage business marketing activities, with reference to these provisions.
The number of marketing personnel engaged in securities brokerage business of a securities company shall be commensurate with the management ability of the company.
Twenty-eighth the provisions shall come into force as of April 3, 2009.
The Interim Provisions on the Administration of Securities Brokers (hereinafter referred to as the Interim Provisions) came into effect on April 13, 2003. A securities broker can only practice after obtaining the certificate of securities broker. Investors should enhance their awareness of self-protection and take the initiative to check the relevant information in the certificate.
According to the requirements of the Interim Provisions and relevant self-discipline rules, a securities broker shall register with the China Securities Association through the securities company he serves and obtain the securities broker certificate issued by the securities company he serves before practicing. Securities brokers should take the initiative to show their certificates to their clients when practicing. Its practice activities shall not exceed the scope of agency authority stipulated in the certificate, and it shall not engage in the following acts: 1, handling account opening, account closing, transfer, securities subscription, trading or fund access, transfer and inquiry for customers; 2. Providing or disseminating false or misleading information to customers, or inducing customers to buy and sell securities unnecessarily; 3. Agree with customers to share the investment income, and make a commitment to the income of customers' securities trading or compensate for the losses of securities trading; 4. Take improper means such as belittling competitors and entering competitors' business premises to attract customers; 5. Revealing the business secrets or personal privacy of customers; 6. Providing intermediary, guarantee or other convenience for financing between customers; 7. Providing illegal service places or trading facilities for customers, or engaging in activities such as soliciting customers and customer service through the Internet and news media; 8. Entrust others to engage in activities such as customer solicitation and customer service; 9. Other behaviors that damage the legitimate rights and interests of customers or disrupt market order.
The practice of securities brokers is directly related to the immediate interests of investors. Investors should enhance their awareness of self-protection. When accepting the promotion, promotion and service of securities brokers, they should take the initiative to check the certificate of securities brokers, carefully read the information specified in the certificate, and understand the identity of securities brokers, the securities companies they serve and their securities business departments, the agency authority, the agency term, the scope of practice and the prohibited acts. If a securities broker is found to be suspected of violating the rules, he shall refuse to accept his propaganda, promotion and services, and may report to the China Securities Regulatory Commission and its dispatched offices and the China Securities Association.
For the authenticity of the Securities Broker's Certificate and the information contained therein, investors can inquire and verify through the website of China Securities Association, or through on-site, telephone, internet and other means to inquire and verify with the securities companies specified in the certificate.
In order to cooperate with the implementation of the Interim Provisions, China Securities Industry Association has successively promulgated the self-discipline rules such as the Code of Practice for Securities Brokers of China Securities Industry Association (Trial) and the Interim Measures for the Registration of Securities Brokers of China Securities Industry Association. The supervision and self-discipline rules related to the management of securities brokers are basically in place. Securities companies approved by the dispatched office of China Securities Regulatory Commission and meeting the prescribed conditions may entrust securities brokers to engage in activities such as customer solicitation and customer service according to law.