According to news from the CSRC on April 26, the CSRC openly solicited opinions on the "regulations on the Supervision of Enterprises to be listed on the Stock Exchange of the former personnel of the CSRC system (trial implementation)".

The CSRC said that in the next step, it will continue to strictly control the entrance, strengthen cooperation with discipline inspection and supervision departments, and find clues to violations of law and discipline.31stseagames2021Firmly hand over to the relevant departments for handling, and maintain a fair, just and open order in the supervision of issuance.

An overview of key points

Extend the prohibition period for the post of issuing supervision and management cadres to join the proposed listed enterprises, from 3 years to 10 years after leaving.

Expand the scope of strict examination from the departing personnel to their parents, spouses, children and their spouses.

Intermediary agencies should fully verify the investment background, sources of funds, price fairness and the authenticity of clean-up of the departing personnel.

Strengthen cooperation with discipline inspection and supervision departments, and resolutely hand over clues of violations of law and discipline to relevant departments for handling

It is understood that for a long time, the CSRC has persisted in inward and targeted supervision from the perspective of maintaining the order of the "three public" in the market, preventing "creating wealth" in violation of laws and regulations, and building a clean government with strict supervision team. to implement penetrating supervision over the former personnel of the CSRC system (hereinafter referred to as the departing personnel) to participate in the shares of the enterprises to be listed. In May 2021, the Securities Regulatory Commission issued "guidelines for the Application of Regulatory rules-issuing Class No. 2" (hereinafter referred to as "guidelines No. 2"), stipulating the improper investment of departing personnel and the responsibility of intermediary agencies to check the shareholding behavior. It is clear that the CSRC carries out special verification on the stock investment behavior, arranges the internal audit department to carry out independent review, and forms a crisscross checking mechanism for the stock purchase behavior of the departing personnel.

Since the release of the "No. 2 guidelines", departing personnel to participate in the proposed listed enterprises have been effectively supervised, and the average audit cycle of such enterprises has been significantly extended. It is generally felt in the market that the stock ownership of the staff who left the CSRC system will not bring any convenience to the enterprise, but will affect the listing process of the enterprise.

In order to further consolidate the effectiveness of supervision and reflect the increasingly stringent regulatory attitude, the CSRC summed up its experience and, on the basis of the "No. 2 guidelines", formulate the regulations on the Supervision of Enterprises to be listed on the basis of the former personnel of the Securities Regulatory Commission (for trial implementation) (hereinafter referred to as the regulations on the Supervision of departing personnel).

The regulations on the Supervision of departing personnel contains the main contents of the No. 2 guideline, and on this basis, three new regulations are added.31stseagames2021First, the management of key personnel should be further strengthened. Extend the prohibition period for issuing supervision posts and personnel who will leave their posts to join the proposed listed enterprises, from 3 years after leaving office to 10 years. The second is to expand the scope of supervision of departing personnel. Expand the scope of strict examination from the departing personnel themselves to the departing personnel and their parents, spouses, children and their spouses. The third is to put forward higher verification requirements. The intermediary agencies shall fully verify the investment background, sources of funds, price fairness and the authenticity of the clean-up of the departing personnel, and the CSRC shall check and review the relevant work.

The CSRC said that in the next step, it will continue to strictly control the entrance, strengthen cooperation with discipline inspection and supervision departments, and resolutely hand over clues of violations of law and discipline to relevant departments for handling, so as to maintain a fair, just and open order in the supervision of issuance.