"Securities Act" December consideration of mixed supervision mechanism or icebreaker

Updated: April 23, 2016  Views: 11

22 NPC Standing Committee announced the 2016 legislative work program, modify the Securities Act is scheduled to continue its consideration in December. Since last April the First Review, the stock market suffered abnormal volatility in June, Securities Act shelve to date.

'Securities Act registration system is the soul of' securities law expert, Professor Li Shuguang, China University of Political Science told reporters. He said that although the State Department authorized the NPC Standing Committee has made in reform implementation registered shares issued << adjust the applicable securities laws> > the relevant provisions of the decision, but the registration system will still appear in the provisions of the draft securities law.

March's national 'two sessions', the reform of existing 'line 3 will be' setting the separate regulatory regime for the mixed supervision system strong voice, sources close to the legislation, told the 21st Century Business Herald, 'authorities are promoting this reform Securities law secondary consideration scheduled in December this year, when the draft securities law might appear reflected mixed supervision system provisions. '

Certainly registration system into law

National People's Congress Law Committee of the Law, director WANG Chao said that in April last year after the Securities Act of first instance, since some of the provisions in the draft for the more sensitive the market, the authorities do not discuss the first public comments since then modify the legislative branch in the research study process, took place last June to July abnormal stock market volatility, the Securities Act to amend the content becomes more sensitive.

December 2015, the NPC Standing Committee decision authorizing the public offering of the State Council to be in the Shanghai Stock Exchange, the Shenzhen Stock Exchange traded shares, adaptation << >> the relevant provisions of the Securities Act on public offering approval system, the implementation of a registration system specific embodiments made by the State Council, reported to the Standing Committee of National people's Congress for the record.

The decision from March 1, 2016 implementation, the implementation period of two years. SFC had been in January, March 1 refers to the National People's Congress decided to authorize the implementation period of two years starting point, not a formal registration system reform started the starting point, the specific time will further advance the implementation of the reform announcement after the completion of the relevant institutional rules.

'Decision on the registration system, not the question of amending one or two provisions of the Securities Act, and registration system supporting many provisions must be changed,' Li Shuguang told the 21st Century Business Herald.

'Especially registration system after the implementation, market supervision, law enforcement, information disclosure, securities fraud, market and other aspects of service provision will change dramatically,' he said.

Mixed supervision is advance or retreat?

For the current reform of financial mixed sub-sector regulatory regime of the Securities Act is amended hot issue. 'Thirteen Five' plan proposed pointed out the need 'to strengthen macro-prudential financial management system construction, strengthen co-ordination, reform and improve to adapt to modern financial regulatory framework for the financial market development. 'held at the end of the central economic work Conference proposed to' step up 'research proposed financial regulatory reform program.

21st Century Business Herald informed that the draft securities law after the first review, the system only provides for coordination between the regulatory authorities.

A person close to the legislation, told reporters, 'Mixed regulatory reform measures will soon be concluded consideration of draft in December will certainly be a provision on mixed supervision of the new regulatory body to write into,' but he He declined to give more specific plans.

For in what mixed supervision mode, Li Shuguang that the UK regulatory regime more reference. In 1997, the British established the Financial Services Authority, unified banking supervision, securities and insurance industries. In 2013, Britain has abandoned the mode, the Bank of England under the prudential regulation Authority is responsible for micro-prudential supervision and the establishment of monetary policy committee at the Bank of England, responsible for macro-prudential and financial stability. at the same time, the establishment of an independent financial conduct Authority, responsible for financial regulation and consumer behavior protection.

'About mixed supervision There are two ideas, the idea is to avoid sound regulatory system, only states regulatory authorities, regardless of the future 'three will be' is the score is close, are still called the State Council's securities regulatory authorities, positive thinking is clear in securities State law in the states establish a comprehensive, unified financial regulatory agency responsible for the regulation of securities and derivatives markets, 'Chinese people's University law School professor Judicial Conciliation think.

'Because the law Commercial Bank Law, Insurance Law, etc. have not revised agenda on to mention the Securities Act modification clear about unified financial regulator also not a bad idea, this positive thinking can promote the reform to some extent,' Judicial Conciliation told the 21st Century economic report.

Judicial Conciliation believes that 'the current regulatory professional competence of the Commission staff is very good, but what happened last year in June stock market anomalies, as well as Internet financial problems are frequently explained, the Commission alone can not complete the regulatory functions at the same time, 'Whose children who taken away 'ideas often leads to no one willing to take responsibility. '

Judicial Conciliation even suggested the Securities Act of dedicated 'emergency stock market regulatory mechanisms' chapter, 'clearly provides rescue tool toolbox variety, the cards in order. Once set up this mechanism, it is not able to do a Commission, which requires breakthrough 'in regulatory institutions.

'In order to avoid regulatory blind spots, regulatory loopholes and regulatory arbitrage, only a clear regulatory system, according to financial market players from the previous identity in accordance with the regulatory body into conduct supervision,' Judicial Conciliation said.


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Traditional Chinese: 《證券法》12月再審議 混業監管機制或破冰

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