The Securities Association of China (SAC) is a self-regulatory organization for securities industry established according to relevent provisions of the ¡°Securities Law of the People¡¯s Republic of China¡± and the ¡°Administrative Regulations on the Registration of Public Organizations¡±. SAC is a non-profit social institutional legal person function under the guidance and supervision of the China Securities Regulatory Commission and the Ministry of Civil Affairs of China.
Since established on August 28, 1991, SAC has earnestly enforced its ¡°Articles of Association¡± and acted according to the principles of ¡°Legitimate, Supervision, Self-regulation and Normalization¡±. Under the supervision and direction of CSRC, SAC relies on its members to discharge its 3 major functions: ¡°Self-regulation, Bridging and Service¡±. In the process of promoting self-regulation, enhancing integrity construction, reflecting comments and suggestions of the industry and improving the industrial development environment, SAC has made adaquate contributions to its role as the self-regulatory organization for the industry. On 22 January 2007, the fourth Member General Meeting was held and Mr. Huang Xiangping was elected as the Chairman.
The highest authority of SAC is the Member General Meeting which is composed by all members. The Board of Directors is the executive body. SAC operates under the Chairman Responsbility System. By May 1, 2007, SAC has 299 members in total, including 109 Securities Companies, 51 fund management companies, 92 securities investment consulting institutions, 3 assets managements companies and 44 special members (2 stock exchanges, 1 securities depository and clear company, 8 fund custodian institutions and 33 local securities associations).
The objectives of SAC are:
l Conducting self-regulation over securities industry under the governnment¡¯s centralized and comprehensive supervision and management;
l Bridging between the Government and the industry
l Providing services to members, protecting the lawful rights and interests of members
l Maintaining fair competition order in securities industry, promoting transparency, justice and fairness of the securities market and push forward healthy and steady development of the securities market.
The Fourth Member General Meeting approved the amendments of the Articles of Association of SAC. Functions and duties of SAC under the amended Articles of Association includes the following:
SAC shall, according to the ¡°Securities Law¡±, enforce the following functions and duties:
l Educates and organizes members to observe securities laws and regulations; Maintains members¡¯ lawful rights and interests according to law; Communicates members suggestions and demands to CSRC;
l Collects securities information and provides services to members;
l Formulates rules to be observed by members, organizes professional trainnings for securities professionals emloyed by members, farcilates business exchanges among members;
l Mediates on securities business related disputes among members or among members and their clients;
l Organizes members to research on industrial development, operation and other related issues;
l Supervises and inspects members conducts, excutes disciplanary measures on members voilatining laws, regulations and the Articles of Association of SAC according to relevant provisions.
Based on the executive regulations and CSRC¡¯s norms, SAC exerts the followed functions and duties:
l Enacting self-regulatory rules£¬practicing standards and business criteria. Conducting self-regulatory administration on members and the securities professionals employeed by members;
l In charging of qualification examinations, ratification and practice registration for securities professionals;
l Organizing qualification tests for senior managers of securities companies, competence exams for sponsors and organizing continue education and training programs for such senior managers and sponsors;
l In charging of securities information technoledge exchange and training, organizing and coordinating members to guarantee information safety, conducting appraisal on information safey risks for important informationa systems of securities companies, organizing investigation and identification of trading system accidents;
l Enacting operation rules of the OTC system, supervising business conducts and information disclosure and other related matters regarding the OTC system;
l Other responsbilities authorized by executive regulations and rules of CSRC.
According to the need of operational norms development, SAC exercises other obligations relating to self-regulation, service and bridging. It promotes integrity construction in the industry, urges members observe disclosure obligations, assesses and examines the integrity status of information disclosed by members. SAC formulates professional standards for securities professionals, arranges qualification examinations and advancement authentication for securities professionals, organizes international exchange and cooperation for the securities industry. , SAC represents Chinese securities industry to join relative international organizations and promotes mutual recongnition of relative qualifications. SAC conducts other obligations relating to self-regulation, service and bridging.
