The term "compliance" as mentioned in these Measures refers to that the management and practice of securities fund operating institutions and their staff comply with laws, regulations, rules and normative documents, industry norms and self-discipline rules, internal rules and regulations of the company and professional ethics and codes of conduct generally observed by the industry (hereinafter referred to as laws, regulations and guidelines).
The term "compliance management" as mentioned in these Measures refers to the behavior of securities fund operating institutions to formulate and implement compliance management systems, establish compliance management mechanisms, and prevent compliance risks.
The term "compliance risk" as mentioned in these Measures refers to the risk that a securities fund operating institution or its staff will be investigated for legal responsibility, take regulatory measures, be given disciplinary action, suffer property losses or business reputation losses due to violation of laws, regulations and standards in management or practice activities. Article 3 Compliance management of securities fund operating institutions shall cover all businesses and run through all links such as decision-making, implementation, supervision and feedback. Article 4 A securities fund operating institution shall establish the concept that all employees are compliant, compliance begins with management, compliance creates value and compliance is the foundation of the company's survival, advocate and promote the construction of compliance culture, cultivate the compliance awareness of all employees, and enhance the professional honor and professionalism of compliance managers. Article 5 China Securities Regulatory Commission (hereinafter referred to as China Securities Regulatory Commission) shall supervise and manage the compliance management of securities fund operating institutions according to law. The dispatched offices of China Securities Regulatory Commission shall perform their supervisory and administrative duties as authorized.
China Securities Industry Association, China Asset Management Association and other self-regulatory organizations (hereinafter referred to as associations) shall formulate detailed rules for implementation in accordance with these Measures, and implement self-regulatory management on compliance management of securities fund operating institutions. Chapter II Responsibilities of Compliance Management Article 6 Securities fund operating institutions shall operate in compliance with the law, be diligent and conscientious, adhere to the principle of putting the interests of customers first, and observe the following basic requirements:
(a) a comprehensive understanding of the customer's basic information, financial status, investment experience, investment objectives, risk preferences, credit records and other information and timely update.
(2) Reasonably divide the customer categories and risk levels of products and services, ensure to provide the right products and services to the right customers, and do not deceive customers.
(3) Constantly urging customers to standardize securities issuance, dynamically monitoring customers' trading activities, promptly reporting and handling major abnormal behaviors according to law, and not providing convenience for customers to engage in securities issuance and trading activities in violation of regulations.
(four) strictly regulate the practice behavior of staff, urge staff to be diligent and conscientious, and prevent them from taking advantage of their positions to engage in illegal activities, exceed their powers or other acts that harm the legitimate rights and interests of customers.
(5) Effectively manage insider information and undisclosed information, and prevent the company and its staff from using the information to buy or sell securities, suggesting others to buy or sell securities or disclosing the information.
(VI) Identify and properly handle conflicts of interest between the company and customers, between different customers and between different businesses of the company, earnestly safeguard the interests of customers and treat customers fairly.
(7) Fulfill the review procedures and information disclosure obligations of related party transactions according to law, ensure the fairness of related party transactions, and prevent improper related party transactions and interest transfer.
(8) Carefully evaluate the impact of the company's business activities on the securities market and take effective measures to prevent the market order from being disturbed. Article 7 The board of directors of a securities fund operating institution decides the company's compliance management objectives, assumes responsibility for the effectiveness of compliance management, and performs the following compliance management duties:
(1) Examining and approving the basic system of compliance management;
(2) Examining and approving the annual compliance report;
(3) Deciding to dismiss the senior management personnel who have the main responsibility or leadership responsibility for the occurrence of major compliance risks.
(4) To decide on the appointment, dismissal, assessment and remuneration of the person in charge of compliance;
(5) Establishing a direct communication mechanism with the person in charge of compliance;
(6) Evaluating the effectiveness of compliance management, and urging to solve the problems existing in compliance management;
(7) Other compliance management duties as stipulated in the articles of association. Article 8 The board of supervisors or supervisors of a securities fund operating institution shall perform the following compliance management duties:
(1) Supervising directors and senior managers to perform their duties of compliance management;
(2) Proposing the removal of directors and senior managers who have major responsibility or leadership responsibility for major compliance risks.
(3) Other compliance management duties as stipulated in the articles of association. Article 9 The senior managers of securities fund operating institutions are responsible for implementing compliance management objectives, operating in compliance and performing the following compliance management duties:
(1) Establish and improve the organizational structure of compliance management, abide by compliance management procedures, and provide sufficient and appropriate compliance management personnel with sufficient human, material, financial and technical support and guarantee for them to perform their duties;
(two) found illegal behavior timely report, rectification, the implementation of accountability;
(3) Other compliance management responsibilities stipulated in the articles of association or determined by the board of directors.