On Mar. 28, CHI NFRA proposed rules on money brokerage firms.
CHI NFRA issued draft Regulation on the administration of money brokerage firms.
Proposal
Optimizes licensing requirements by increasing minimum registered capital, tightening qualifications for shareholders on matters including financial health and staffing ratios.
Expands business scope by adjusting brokerage activity categories, allowing brokerage services in gold market; permits firms to provide market data derived from operations.
Refines rules by clarifying entry requirements for brokerage services, defining qualified clients as licensed financial institutions, setting compliance and fee standards.
Strengthens risk supervision by establishing requirements for corporate governance, internal controls, disclosure, and managing various risks such as operational, compliance, IT, and outsourcing risks; AML/CFT measures are also covered.
Introduces a dedicated chapter to enhance the regulation of broker conduct, requiring better internal systems, ethical behavior, and explicitly listing prohibited actions.
Consultation Period
Comment period of this consultation closes on Apr. 28, 2025.
