On Jan. 17, 2025, CHI CSRC finalized the basic rules and published answers to press.
The rules take a comprehensive approach to securities and futures violations, integrating punishment, prevention, remediation with multi-dimensional accountability.
Criminal violations must be referred to judicial authorities, civil liability pursued for infringements, and non-punitive measures applied where penalties are not imposed.
To implement the rules, efforts will be focused on promoting awareness among market participants, fostering compliance, and ensuring regulatory personnel are trained.
The basic rules will be effective from Mar. 1, 2025.
Also follows CHI GVT Jul. 2021 issued opinions on illegal securities activities, #110224.
Proposal
Includes rules on penalty procedures, confiscation of illegal gains, penalties for joint offenders/directly responsible personnel of entities, application of old and new laws.
Also, multidimensional accountability, and coordination with criminal proceedings.
Clarifies the scope and meaning of discretionary levels, such as no penalty, exemption from penalty, reduced penalty, lenient penalty, general penalty, and severe penalty.
CHI CSRC will supervise, guide its subordinate agencies' exercise of penalty powers.
Effectiveness
The consultation is open until Jul. 7, 2024.
Jan. 2025 Rules Finalized
On Jan. 17, 2025, CHI CSRC finalized the basic rules and published answers to press.
The rules take a comprehensive approach to securities and futures violations, integrating punishment, prevention, remediation with multi-dimensional accountability.
Criminal violations must be referred to judicial authorities, civil liability pursued for infringements, and non-punitive measures applied where penalties are not imposed.
To implement the rules, efforts will be focused on promoting awareness among market participants, fostering compliance, and ensuring regulatory personnel are trained.
The basic rules will be effective from Mar. 1, 2025.
