Independent director is no longer a vase; new regulations on securities fund industry highlight independence of independent director

category:Finance
 Independent director is no longer a vase; new regulations on securities fund industry highlight independence of independent director


Independent directors are not only is a common phenomenon in the capital market. The independent director system was once criticized by the market for its lack of independence. China Times reporter noted that there are special provisions in the management measures on the establishment of independent directors, focusing on the independence and objectivity of independent directors. At this point, the independent director system can be further improved, and the capital market will usher in the real sense of independent directors.

Chen Li, chief economist and director of the Research Institute of Sichuan financial securities, said in an interview with the China times that, in terms of the system of directors, supervisors and senior executives, the previous administrative examination and approval was given priority to, and the filing system was changed after the modification. At the same time, the relevant standards for appointment were adjusted and relaxed, highlighting the importance of working experience. One is to keep pace with the times, so that talents can be further recognized in multiple dimensions. On the other hand, optimization accelerates the administrative approval process.

New and high-tech plans of directors and supervisors come out

It is reported that there are 56 articles in the administrative measures, which stipulate the appointment and practice management of directors, supervisors and employees, the practice standards and performance restrictions, the management responsibility, supervision and management and legal responsibility of securities fund operation institutions.

In addition, the regulatory authorities have also strengthened the supervision of employees illegal behaviors, mainly to strengthen the supervision in and after the event, and strengthen the accountability, so as to achieve no blind spot and blind spot in the supervision and accountability.

It is worth noting that, according to the administrative measures, some basic conditions for directors, supervisors and senior executives of securities companies and fund companies have been optimized. For example, the level test is no longer regarded as a necessary condition, and personnel with certain professional experience and experience are allowed to be exempted from the test; for professionals in financial technology and other fields, the work experience restrictions are moderately relaxed, and the education requirements and the system of recommenders are cancelled.

There are many bright spots in the management measures, such as adjusting the qualification examination and approval of directors, supervisors and senior personnel of securities companies to post filing in terms of optimizing the employment procedures and conditions of relevant personnel in the securities fund industry; in terms of clarifying professional norms, such as strengthening the management of conflict of interest, requiring relevant personnel not to make illegal investment and not to have conflict of interest with customers.

Lin Xiaozheng, deputy director of the institutional Department of China Securities Regulatory Commission, said in an interview with the China times that this is a special regulation for directors, supervisors, senior executives and employees, focusing on improving the efficiency of administrative supervision, strengthening industry self-discipline, and urging business institutions to strengthen internal control over personnel.

The securities fund industry is a human resource intensive industry. The directors, supervisors and senior executives are responsible for the operation and management of the company, which directly affects the rights and interests of investors. The professional quality, professional ethics and compliance level of employees have an important impact on the standardized development of the capital market.

China Times reporter noted that there are special provisions in the management measures on the establishment of independent directors, focusing on the independence and objectivity of independent directors. This means that the capital market will usher in the era of independent directors in the true sense.

In addition, there are further requirements for the declaration of independent directors in the administrative provisions. If the securities fund operation institution employs independent directors, it shall require the candidate to provide a statement on independence, which shall be submitted to the relevant agency of the CSRC as filing materials.

It is worth noting that the CSRC requires that the statement of independent directors should focus on whether there are six kinds of situations that may hinder the candidates from making independent and objective judgments.

Among them, they have worked in the securities fund operation organization and its related parties in the past three years; their immediate family members and major social relations personnel have held posts in the proposed securities fund operation organization and its related parties; they have an interest relationship with the senior managers, other directors, supervisors and other important personnel of the proposed securities fund operation organization and its related parties; and In addition to independent directors, other situations recognized by the CSRC according to law.

Call for updating the system of independent directors of listed companies

After the renewal of the independent director system of securities companies and funds, will the independent director system of listed companies be updated in the next step? In fact, the A share market, the appointment and appointment of independent directors has the final say. Therefore, the market calls for the optimization of the independent director system of listed companies should start from the system, take back the power of recommendation, appointment and removal from the major shareholders, and conduct unified and standardized management.

Talking about the independent director system of listed companies can be traced back to 2001. Former vice chairman of the Hong Kong Securities Regulatory Commission, Mr. Smith, served as the vice chairman of the China Securities Regulatory Commission, and pushed the introduction of the independent director system into the A-share market. Subsequently, on August 21, the guidance on the establishment of the independent director system in listed companies was issued.

It is worth noting that the guidance on the establishment of the independent director system in listed companies requires that in principle, any person can concurrently serve as an independent director in five listed companies at most.

According to the incomplete statistics of wind data, as of November 22, there were 12837 independent directors in the A-share market, and 25 of them served as independent directors in more than five (including) companies.

Among them, Liu Wei served as an independent director in 12 companies, with the largest number. At present, his company is Chongqing Three Gorges a (000565. SZ), enlightenment Guhan (000590. SZ), WanLiYang (002434. SZ), golden ham (002515. SZ), Xiangxin Technology (002965. SZ), Juhua Technology (300360. SZ), Wanlong Optoelectronics (300710. SZ), St Changyu (600275. SH), Fuling electric power (600452. SH), St Hongsheng (600817. SH), Rutong shares (603036. SH), Zhengchuan Shares (603976. SH). The reporter noted that according to the data of the 2019 annual report, Liu Weis annual salary as a sole director of 12 listed companies was 639500 yuan. Li Hao, Secretary of the board of directors of Changhang Fenghuang, suggested in an interview with the China times that the requirement for independent directors with no more than five posts in principle be reduced to three mandatory ones, so as to ensure the diligence and independence of independent directors. Editor: Yan Hui chief editor: Xia Shencha source: China Times responsible editor: Ren Hui_ NBJ9607

Among them, Liu Wei served as an independent director in 12 companies, with the largest number. At present, his company is Chongqing Three Gorges a (000565. SZ), enlightenment Guhan (000590. SZ), WanLiYang (002434. SZ), golden ham (002515. SZ), Xiangxin Technology (002965. SZ), Juhua Technology (300360. SZ), Wanlong Optoelectronics (300710. SZ), St Changyu (600275. SH), Fuling electric power (600452. SH), St Hongsheng (600817. SH), Rutong shares (603036. SH), Zhengchuan Shares (603976. SH).

Li Hao, Secretary of the board of directors of Changhang Fenghuang, suggested in an interview with the China times that the requirement for independent directors with no more than five posts in principle be reduced to three mandatory ones, so as to ensure the diligence and independence of independent directors.

Editor: Yan Hui chief editor: Xia Shencha