Article 26. A financial institution engaging in financial derivatives business shall be able to identify and assess significant risks and material business losses effectively. In the event that substantial risks and material business losses occur in derivatives transactions, a financial institution shall report to the CBRC and submit to the CBRC remedial proposals. Where foreign exchange control and remittance are involved, the State Administration of Foreign Exchange shall be given a copy of such reports.
Article 27. A financial institution shall, in accordance with the method and terms set forth by the CBRC's administrative regulations on accounting files, properly maintain all transaction records and documents, accounts, original receipts, telephone recordings and other information in relation to the transactions. Telephone recordings shall be maintained for no less than six months. A financial institution shall retain other materials for three years after the termination of contracts for review purposes unless the accounting rules require otherwise.
Chapter IVPenalty Rules
Article 28. Where a dealer of a financial institution engages in illegal operation in violation of The Rules and the relevant rules of the financial institution and such violation causes the financial institution and its clients to suffer significant economic loss, the financial institution shall reprimand the senior managers and other managers directly in charge of such business and the employees directly responsible for such loss and may even lay off such employees. If the violation constitutes a criminal offence, criminal charges will be brought against such employees.
Article 29. Financial institutions engaging in the derivatives business without approval shall be penalised by the CBRC in accordance with the Penalties for Illegal Financial Activities.
If non-financial institutions which provide derivatives service to its clients in violation of The Rules, such serviced shall be terminated by the CBRC and any illegal income shall be confiscated. If the violation constitutes a criminal offense, criminal charges will be brought against such employees.
Article 30. Financial institutions that fail to submit the relevant statements, materials and disclose derivatives transactions as required by The Rules and other requirements of the CBRC shall be penalised by the CBRC in accordance with the "PRC Commercial Banking Law", the "PRC Administrative Regulations on Foreign-Capital Financial Institutions" and other laws, regulations and relevant financial rules.
Financial institutions that provide fraudulent financial or statistical reports regarding derivatives transactions or conceal any material facts shall be penalised by the CBRC in accordance with the Penalties for Illegal Financial Activities.
Article 31. The CBRC may suspend or withdraw a financial institution's license to carry out derivatives business if it has found that the financial institution does not have the capability to identify and assess risks of derivatives transactions or unable to effectively implement the risk management system and internal control system.
Chapter VSupplemental Rules
Article 32. The Rules shall be interpreted by the CBRC.
Article 33.The Rules shall be effective from [●]. Where there is inconsistency between The Rules and regulations previously promulgated in relation to derivatives businesses carried on by financial institutions, The Rules shall prevail.共3页 上一页 1 2 3 |
