Comparison Table of the Old and New Versions of the Measures for the Supervision and Administration of Integrity in the Securities and Futures Markets (Part 31 – Final)

Comparison Table of the Old and New Versions of the Measures for the Supervision and Administration of Integrity in the Securities and Futures Markets

Article 31: The China Securities Regulatory Commission and its branch institutions, when reviewing administrative licensing applications, shall, upon receipt, promptly conduct a review of applications that meet the following conditions:

(1) No record of dishonesty involving violations of securities and futures laws, administrative regulations, or the provisions of the China Securities Regulatory Commission over the past three years;

(2) In the past three years, no administrative penalties have been imposed by relevant authorities, including banks, insurance regulators, tax authorities, environmental protection agencies, and customs, for engaging in business activities in violation of laws and regulations.

(3) Has not been sentenced by a people’s court for securities or futures‑related crimes, or for any other criminal offense.

The China Securities Regulatory Commission and its local branches, when reviewing administrative licensing applications, may give priority to applicants with higher integrity scores under otherwise equal conditions.

Article 29: In the course of non‑administrative licensing approvals and business innovation pilot programs, the China Securities Regulatory Commission and its branch institutions may, within the scope prescribed by laws and administrative regulations, accord priority in approval and arrangement to applicants with better integrity under otherwise equal conditions.

Article 32 The China Securities Regulatory Commission and its branch institutions, Industry organizations in the securities and futures markets Under the business innovation pilot program, within the scope prescribed by laws and administrative regulations, applicants with better integrity under otherwise equal conditions may be given priority in allocation.

Article 30: In imposing administrative penalties, enacting market bans, or adopting supervisory and regulatory measures against citizens, legal persons, or other organizations, the China Securities Regulatory Commission and its branch institutions may consult the integrity records. Taking into account the nature and circumstances of the party’s unlawful conduct, as well as the extent to which it has infringed upon the legitimate rights and interests of investors, they shall consider the party’s integrity status as a discretionary factor in determining the severity of the penalty, the duration of the ban, and the type of supervisory and regulatory measure.

Article 33. In the course of imposing administrative penalties, enacting market bans, and taking supervisory and administrative measures against citizens, legal persons, or other organizations, the China Securities Regulatory Commission and its branch institutions, Should By reviewing the party’s integrity record and, after comprehensively considering factors such as the nature and circumstances of the violation, the extent of harm to investors’ legitimate rights and interests, and the party’s integrity status, a decision shall be made in accordance with the law.

Article 31: In the course of conducting routine regulatory activities such as supervision and inspection, the China Securities Regulatory Commission and its branch institutions may, taking into account the integrity records of the regulated entities and their personnel, carry out targeted on-site and off-site inspections, or appropriately adjust and schedule the subjects, frequency, and scope of on-site inspections.

Article 34. The China Securities Regulatory Commission and its branch institutions, in the course of conducting routine regulatory activities such as supervision and inspection, The integrity records of the supervised institution shall be reviewed. , based on the compliance and integrity of the regulated entity, conduct targeted on-site and off-site inspections, or appropriately adjust the scope, frequency, and content of on-site inspections.

Article 35: Securities registration and clearing institutions, securities companies, futures companies, and other such entities shall, when opening securities or futures‑related accounts for investors or clients, consult the investors’ or clients’ integrity records and handle the relevant account‑opening procedures in accordance with applicable regulations.

Article 36: When processing applications from clients for securities repurchase agreements with collateral, reverse repurchase agreements, and margin trading and short selling, securities companies may consult the client’s integrity record and, based on the applicant’s integrity status, determine whether to approve the application or set and adjust the credit limit.

When conducting securities margin lending and borrowing business, a securities finance company may access the creditworthiness records of securities firms and, based on the firms’ integrity, determine whether to extend such services or to set and adjust the credit limit.

Article 37: Issuers, listed companies, companies listed on the National Equities Exchange and Quotations for Small and Medium-sized Enterprises, securities firms, futures companies, fund managers, and securities and futures service institutions shall, when intending to appoint directors, supervisors, senior management personnel, or other practitioners, consult the integrity records of the proposed appointees and use their integrity status as a basis for deciding whether to proceed with the appointment.

Article 38: Securities companies and securities service institutions entrusted with providing securities services to issuers, listed companies, companies listed on the National Equities Exchange and Quotation System for Small and Medium-sized Enterprises, and other such entities shall consult the client’s integrity record and shall take the client’s integrity status into account when deciding whether to accept the engagement and determining the fee schedule.

Article 32: Where a citizen, legal person, or other organization publicly disseminates commentary on the securities and futures markets that contains factual inaccuracies or otherwise materially misleads the public, the China Securities Regulatory Commission and its branch institutions may issue a letter of concern regarding integrity, record the matter in the integrity file, and may notify the entity’s employer, the competent supervisory authority, or the relevant industry self-regulatory organization.

Securities and futures investment consulting institutions and their personnel who publicly disseminate market commentary on the securities and futures markets in violation of applicable regulations shall be subject to handling and penalties in accordance with relevant provisions.

Citizens, legal persons, or other organizations that use publicly disclosed securities and futures market commentary to engage in insider trading, market manipulation, or other unlawful activities shall be subject to administrative penalties in accordance with the law; if their conduct constitutes a crime, they shall be held criminally liable by the judicial authorities in accordance with the law.

Article 39: Where a citizen, legal person, or other organization publicly disseminates commentary on the securities and futures markets that contains factual inaccuracies or otherwise materially misleads the public, the China Securities Regulatory Commission and its dispatched agencies may issue a letter of concern regarding integrity, record the matter in the integrity file, and may notify the entity’s employer, the competent supervisory authority, or the relevant industry self-regulatory organization of the circumstances.

Securities and futures investment consulting institutions and their personnel who publicly disseminate market commentary on the securities and futures markets in violation of applicable regulations shall be subject to handling and penalties in accordance with relevant provisions.

Citizens, legal persons, or other organizations that engage in illegal activities such as market manipulation by exploiting publicly disclosed commentary on the securities and futures markets shall be subject to administrative penalties in accordance with the law; if their actions constitute a crime, they shall be held criminally liable by the judicial authorities in accordance with the law.

Article 33: Industry organizations in the securities and futures markets shall educate and encourage their members and practitioners to comply with laws and act in good faith. Members and practitioners who comply with laws and act in good faith may be commended or rewarded.

The China Securities Regulatory Commission encourages industry organizations in the securities and futures markets to establish integrity assessment systems, conduct assessments of the integrity of relevant industries and market entities, and publicly disclose the assessment results.

Article 40: Industry organizations in the securities and futures markets shall educate and encourage their members and practitioners to comply with laws and act with honesty and good faith. Members and practitioners who comply with laws and uphold honesty and good faith may be commended or rewarded.

The China Securities Regulatory Commission encourages industry organizations in the securities and futures markets to establish integrity assessment systems, conduct assessments of the integrity of relevant industries and market entities, and publicly disclose the assessment results.

The Securities Association of China, the Futures Association of China, the Listed Companies Association of China, and the Asset Management Association of China have established an annual integrity‑member system. The specific measures shall be formulated by the respective associations and filed with the China Securities Regulatory Commission.

Article 34: Listed companies, securities firms, fund management companies, futures companies, and securities and futures service institutions shall continuously improve their internal systems and mechanisms for integrity oversight and restraint, and enhance their level of integrity.

The China Securities Regulatory Commission and its local branches shall conduct inspections and provide guidance on the establishment of internal integrity oversight and disciplinary mechanisms by the institutions specified in the preceding paragraph, and may publicly disclose the results of such inspections within the industry and in the relevant jurisdictions.

Article 41 Listed companies, Companies listed on the National Equities Exchange and Quotations System for Small and Medium-sized Enterprises , securities companies, futures companies, Fund Manager Securities and futures service institutions, among others, should continuously improve their internal systems and mechanisms for integrity oversight and accountability, thereby enhancing their overall level of integrity.

The China Securities Regulatory Commission and its branch institutions shall conduct inspections and provide guidance on the establishment of internal integrity oversight and constraint systems and mechanisms by the entities specified in the preceding paragraph, and may publicly disclose the results of such inspections within the industry and in the relevant jurisdictions.

Article 35: With respect to any citizen who has, pursuant to Item (4) of Article 8 of these Measures, failed to fulfill or failed to fulfill as scheduled the commitments set forth therein, or who has, pursuant to Items (5) through (11) thereof, engaged in unlawful or untrustworthy conduct, the China Securities Regulatory Commission and its branch institutions, as well as industry organizations of the securities and futures markets, may refrain from appointing such person to the following positions:

(1) Member of the Issuance Examination Committee for the Main Board and the ChiNext Board of the China Securities Regulatory Commission;

(2) Member of the Review Committee for Mergers and Acquisitions and Restructuring of Listed Companies of the China Securities Regulatory Commission;

(3) Members of the China Securities Regulatory Commission and its branch institutions, as well as other organizations established by securities and futures market industry associations that are entrusted with review, supervision, verification, or advisory duties.

Article 42: With respect to any citizen who has, pursuant to Item (4) of Article 8 of these Measures, failed to fulfill or failed to fulfill as scheduled the commitments set forth therein, or who has engaged in any unlawful or untrustworthy conduct specified in Items (5) through (17), the China Securities Regulatory Commission, its branch institutions, and industry organizations of the securities and futures markets may refrain from appointing such person to the following positions:

(1) China Securities Regulatory Commission Member of the Stock Issuance Review Committee ；

(2) Member of the Review Committee for Mergers and Acquisitions and Restructuring of Listed Companies of the China Securities Regulatory Commission;

(3) Members of the China Securities Regulatory Commission and its branch institutions, as well as other organizations established by securities and futures market industry associations that are entrusted with review, supervision, verification, or advisory duties.

Article 43 The China Securities Regulatory Commission, together with other departments of the State Council, local people’s governments, national judicial organs, and relevant organizations, shall establish a system and mechanism for joint punitive measures against entities that have lost trust in the securities and futures markets and for joint incentives for those that have maintained integrity, provide relevant integrity information on market participants in the securities and futures markets, and implement such joint punitive and incentive measures in accordance with the law.

Chapter 5 Supervision and Management

Chapter 5 Supervision and Management

Article 36 The integrity supervision and management agency of the China Securities Regulatory Commission shall perform the following duties:

(1) Define and organize the collection of integrity information in the securities and futures markets;

(2) Establish and manage integrity records, and organize and supervise the recording of integrity-related information;

(3) Organize the public disclosure, inquiry, and sharing of integrity information;

(4) Establish and coordinate the implementation of mechanisms for integrity-based oversight, constraints, and incentives;

(5) Other duties related to integrity supervision, management, and services as prescribed by the China Securities Regulatory Commission.

Article 44 The integrity supervision and management agency of the China Securities Regulatory Commission shall perform the following duties:

(1) Define and organize the collection of integrity information in the securities and futures markets;

(2) Establish and manage integrity records, and organize and supervise the recording of integrity-related information;

(3) Organize the public disclosure, inquiry, and sharing of integrity information;

(4) Establish and coordinate the implementation of mechanisms for integrity-based oversight, constraints, and incentives;

(5) Other duties related to integrity supervision, management, and services as prescribed by the China Securities Regulatory Commission.

Article 37: The local branches of the China Securities Regulatory Commission are responsible for receiving and processing applications submitted by citizens, legal persons, or other organizations whose principal place of business is within the jurisdiction, including applications for the registration of integrity information, requests for integrity information inquiries, and applications for the correction of integrity information, in accordance with the provisions of these Measures.

Article 45: The local branches of the China Securities Regulatory Commission are responsible for receiving and processing applications submitted by citizens, legal persons, or other organizations pursuant to these Measures, including applications for the registration of integrity information, requests for inquiries into integrity information, and applications for the correction of integrity information.

Article 38: If the China Securities Regulatory Commission, its branch institutions, or industry organizations of the securities and futures markets fail to record integrity information in a timely, truthful, accurate, and complete manner as prescribed by these Measures, thereby causing adverse consequences, the relevant persons held accountable shall be subject to administrative disciplinary measures in accordance with applicable regulations; in cases of serious circumstances, legal liability shall be pursued in accordance with the law.

Article 46: If the China Securities Regulatory Commission, its branch institutions, or industry organizations in the securities and futures markets fail to record integrity information in a timely, truthful, accurate, and complete manner as prescribed by these Measures, thereby causing adverse consequences, the relevant persons held accountable shall be subject to administrative disciplinary measures in accordance with applicable regulations; in cases of serious circumstances, legal liability shall be pursued in accordance with the law.

Article 39: Citizens, legal persons, or other organizations shall be responsible for the authenticity, accuracy, and completeness of the integrity information they declare and report or publicly announce in accordance with the law.

If the integrity information submitted, reported, or disclosed by citizens, legal persons, or other organizations contains false statements, the China Securities Regulatory Commission and its branch institutions may impose supervisory and administrative measures, including ordering rectification, conducting regulatory talks, issuing warning letters, and requiring public clarification; in cases of serious violations, legal liability shall be pursued in accordance with the law.

Article 47: In cases of violation of the provisions set forth in Articles 10, 18, 22, 35, 37, and 38 of these Measures, the China Securities Regulatory Commission and its branch institutions may impose measures such as ordering rectification, conducting regulatory talks, issuing warning letters, or requiring public clarification. Applications for the declaration and inquiry of integrity information shall not be accepted within a specified period. and supervisory and administrative measures; in cases of serious violations, legal liability shall be pursued in accordance with the law.

Article 40: Where citizens, legal persons, or other organizations obtain, use, or disclose integrity information in violation of the provisions of these Measures, the China Securities Regulatory Commission and its branch institutions may impose supervisory and administrative measures, including ordering rectification, conducting regulatory talks, and issuing warning letters; in cases of serious violations, legal liability shall be pursued in accordance with the law.

Chapter VI Supplementary Provisions

Chapter VI Supplementary Provisions

Article 41. The China Securities Regulatory Commission and its branch institutions, when processing inquiries into integrity information, may only charge costs for printing, copying, binding, and mailing; no other fees may be levied.

Article 48: When the China Securities Regulatory Commission and its branch institutions process requests for access to integrity information, they may only charge costs incurred for printing, copying, binding, and mailing; no other fees may be levied.

Article 42: In the course of performing their self-regulatory duties, industry organizations in the securities and futures markets shall, when accessing integrity records and implementing integrity-based restrictions or incentives, comply with the relevant provisions of these Measures.

Article 49: In the course of performing their self-regulatory duties, industry organizations in the securities and futures markets shall, when accessing integrity records and implementing integrity-based restrictions or incentives, comply with the relevant provisions of these Measures.

Article 43 This Measures shall come into force on September 1, 2012.

Article 50 This Measures shall come into force on July 1, 2018. The Interim Measures for the Supervision and Administration of Integrity in the Securities and Futures Markets 》(CSRC Order No. 106) is hereby repealed simultaneously.