CSRC Promulgated Measures for Administrative Punishment of Securities and Futures Violations
ISSUING AUTHORITY:
China Securities Regulatory Commission
DATE OF ISSUANCE:
July 14, 2021
EFFECTIVE DATE:
July 14, 2021
On July 14, 2021, the China Securities Regulatory Commission (CSRC) promulgated the Measures for Administrative Punishment of Securities and Futures Violations (“Measures”), which shall take effect as of the date of its promulgation.
First, the Measures clarifies the filing procedures and law enforcement authority. It specifies the conditions required for filing a case and takes foreign persons, including both individuals and entities, into its jurisdiction. It also stipulates the measurements available for law enforcement, including freezing accounts, seizure, sequestration, sealing, restriction on exit, restriction on transactions, requiring relevant entities to report documents and information, as well as the circumstances and consequences of non-cooperation of the investigation.
Second, the Measures regulates the conducts of investigation and evidence collection. It further clarifies the standards and requirements for investigation and evidence collection of the evidence including physical evidence, documentary evidence, statements of the parties, electronic data and etc. It also provides guidance on the designation of intermediaries for professional support.
Third, the Measures improves the review mechanism by setting up the Administrative Punishment Committee, which is responsible to conduct legal reviews and issue review opinions before the decision of administrative punishment is issued. Also, the whole process of law enforcement shall be recorded and archived through written records, and the law enforcement process that is likely to cause disputes can be recorded by audio and video. The decisions of administrative punishment shall be made public according to the relevant regulations on disclosure of government information.
Fourth, the Measures strengthens the protection of the rights of the parties and the supervision of law enforcement officers. Before the decision on administrative punishment is made, the parties are entitled to be served with a prior notice of administrative punishment. Also, the rights of the parties to make arguments, request hearings, read the files and etc. shall be protected in accordance with the law. It also regulates the conducts of law enforcement officers.
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