The China Securities Association plans to revise the Implementation Rules for Integrity in the Securities Industry, exploring the quantification of cultural development assessment indicators to evaluate the effectiveness of honest management.

Exclusive industry sources have learned that the China Securities Association has, today, issued letters to all securities firms to formally launch revision and research on the 《Implementation Rules for Integrity in Securities Operating Institutions and Their Staff》. According to the requirements of the CSIA, each brokerage must organize the firm’s disciplinary inspection, compliance, internal audit, internal audit and related business departments, and focus on core topics including the implementation effectiveness of the current 《Rules》, the segments where integrity risks occur frequently and tend to flare up in the industry, risk responses in innovative businesses, and enhancing the effectiveness of internal control mechanisms. Firms are required to submit their research feedback to the CSIA by April 10.

It should be noted that, in this research, the CSIA also discussed how to set specific evaluation indicators in the practice assessment of securities firms’ culture building, so as to more relatively objectively reflect the institution’s integrity-in-practice management. Reporters learned that this research directly targets the toughest “deep-water” areas of current integrity-in-practice management in the securities industry. It covers not only the “interrogation” of supervision difficulties for integrity risks in frontline business areas where such risks are highly concealed within traditional businesses, but also the prevention of newly emerging integrity risks that may arise from the development of industry innovative businesses.

Specifically, the very first question in the research questionnaire touches on the actual effects and shortcomings since the implementation of the 《Rules》. Subsequent questions further narrow in on integrity-risk points that are relatively more frequent and prone to occur at current securities operating institutions, and require brokerages to put forward suggestions to specifically supplement and improve the 《Rules》.(CSIA Taurus)