On Jun. 20, CHI NFRA issued rules on currency brokerage companies.
CHI NFRA amended and published the Measures for the administration of currency brokerage companies and answered reporters' questions regarding the measures.
Background
The current measures were issued in 2005; there are 6 currency brokerage companies in China, but the type and number of financial institutions they serve is increasing.
The revised measures will strengthen supervision of currency brokerage companies.
The term currency brokerage company refers to a non-bank financial institution with CHI NFRA approval, specializing in providing brokerage services for financial market transactions such as currency, bonds, foreign exchange between financial institutions.
Amendment Highlights
Increase the registered capital requirements for currency brokerage companies.
Optimize the entry qualification conditions for investors who invest in currency brokerage company and streamline administrative licensing operating procedures.
Allow currency brokerage companies to provide matching services for transactions such as currency, bonds, foreign exchange, gold, among financial institutions.
Clarify the regulatory requirements for business such as due diligence, transaction confirmation, anonymous matching, trace management and service fee management.
Strengthen corporate governance supervision, improve internal control, related transaction management, salary management, and information disclosures.
Strengthen the management of suspicious transactions, communication tools, brokerage business locations, brokerage personnel files of the brokerage companies.
