China's securities brokers will be governed by new rules starting April 13, the China Securities Regulatory Commission (CSRC) said yesterday.
According to regulations released by the CSRC, all brokers will be required to acquire standard professional qualifications and can only work for sole securities firms.
The move is aimed at professionalizing the securities market and protecting the interests of investors. Securities brokers are defined as persons assigned by securities firms to attract clients and provide customer services.
"These securities brokers are not the formal staff of securities companies. Competition among brokers may harm the rights of investors and affect the development of the securities market. Therefore, it was necessary to regulate the market," an official with the CSRC said.
The new rules will also help protect the brokers' interests, requiring securities firms to sign formal contracts that would clarify the rights and duties of these brokers.
The CSRC began to solicit public opinion on the regulations in September 2008.
"As of end-October 2008, there were about 80,000 securities brokers in the industry. Around 30,000 brokers have passed the qualifying exams. After completing the training courses and registering with the Securities Association of China, the brokers can conduct business," the official said.
Source: China Daily
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