Issuing the rules of recommendation business of securities companies and strengthening the duty of gatekeeper

category:Finance
 Issuing the rules of recommendation business of securities companies and strengthening the duty of gatekeeper


In view of the key and weak links of the recommendation business, the rules of recommendation business supplemented the weak points and established systems to standardize the development of the industry. The first is to require the sponsor institutions to formulate clear and reasonable charging principles for recommendation business, and determine the charging principles from seven aspects of institutions, personnel and business. The second is to strengthen the responsibilities of the sponsor representative, requiring the sponsor representative to participate in the whole process of project implementation, and conduct due diligence and prudent verification in accordance with relevant provisions. The third is to improve the project approval management, requiring the sponsor institutions to carry out preliminary due diligence, anti money laundering, insider management, conflict of interest verification and other compliance work on the proposed issuers before the project approval meeting. Fourth, strengthen the listing guidance work, further improve the sponsors attention to the guidance work, and urge the issuers to continuously improve the corporate governance. Fifthly, the recommendation agency and its sponsor representative should record the scope, steps and contents of due diligence in the due diligence working draft and other documents. The sixth is to strengthen the responsibility of continuous supervision. The sponsor institution and its sponsor representative shall formulate the work plan and implementation scheme of continuous supervision, and make complete and effective arrangements for the main contents, key points, implementation methods and steps of continuous supervision. The seventh is to strengthen the internal control requirements in the aspects of incentive mechanism, independence and honest employment of sponsor institutions, and promote the construction of clean culture in the industry.

In order to further strengthen the self-discipline and restraint on the recommendation representatives, promote the honesty and faithfulness, diligence and responsibility of the sponsor representatives, and continuously improve the level of professional ability and the quality of practice, the China Securities Association has established a classification mechanism for the list of recommendation representatives, which publicizes the implementation of the business, evaluation of professional competence, integrity information and punishment measures of the sponsor representatives Sponsor representatives implement dynamic classification management.

On the basis of consulting the regulatory authorities and the industry in the early stage, three types of lists have been established. One is the comprehensive practice information list of the sponsor representatives (list a). According to whether there is bad credit information within the validity period and whether the test results meet the basic requirements, the professional competence evaluation test is carried out Results the list of recommendation representatives (List B) who fail to meet the basic requirements and whose institutions have verified their professional competence shall publicize the verification materials of the professional competence level of the relevant sponsor representatives, the scores of the evaluation and test results of the professional competence level and the practice information; the third is the recommendation representatives who have been subject to the administrative supervision measures of the CSRC, disciplinary actions of the industry self-discipline organizations or self-discipline management measures in the past three years List of persons (list C), publicize punishment information and practice information of relevant sponsor representatives. Through the establishment of the classification mechanism of the list of sponsor representatives, the integrity constraints, moral constraints, reputation constraints and market constraints are formed. Source: Securities Times Author: Cheng Dan, editor in charge: Wang Xiaowu_ NF

On the basis of consulting the regulatory authorities and the industry in the early stage, three types of lists have been established. One is the comprehensive practice information list of the sponsor representatives (list a). According to whether there is bad credit information within the validity period and whether the test results meet the basic requirements, the professional competence evaluation test is carried out Results the list of recommendation representatives (List B) who fail to meet the basic requirements and whose institutions have verified their professional competence shall publicize the verification materials of the professional competence level of the relevant sponsor representatives, the scores of the evaluation and test results of the professional competence level and the practice information; the third is the recommendation representatives who have been subject to the administrative supervision measures of the CSRC, disciplinary actions of the industry self-discipline organizations or self-discipline management measures in the past three years List of persons (list C), publicize punishment information and practice information of relevant sponsor representatives. Through the establishment of the classification mechanism of the list of sponsor representatives, the integrity constraints, moral constraints, reputation constraints and market constraints are formed.