Compliance in China’s Financial Sector: Key Points

Compliance Programs

In China’s financial sector, compliance programs are crucial for ensuring adherence to regulatory requirements. The following are key aspects of compliance programs:

• Rules and Regulations: The CBRC (China Banking Regulatory Commission) has established rules for compliance risk management applicable to commercial banks.
• Measures for Securities Companies: The CSRC (China Securities Regulatory Commission) has issued measures for compliance management of securities companies and fund management institutions.
• Program Components:
  • Policies and procedures
  • Function and resources dedicated to compliance
  • Risk identification and management flows
  • Training and education mechanisms

Gatekeepers

Effective compliance in China’s financial sector relies on key gatekeepers who ensure that regulatory requirements are met. These include:

• Chief Compliance Officers: Responsible for coordinating compliance risks, supervising the compliance function, and submitting reports to senior management.
• Internal Audit Functions: Report on the effectiveness of compliance management.
• Boards of Supervisors: Supervise directors and senior management in connection with compliance.

Directors’ Duties and Liability

In China’s financial sector, directors have specific duties and liabilities that they must adhere to. These include:

• Statutory Obligations: Directors must abide by laws and regulations, company articles of association, act in good faith, and be diligent.
• Prohibited Actions:
  • Taking bribes
  • Misappropriating funds
  • Concluding unauthorized contracts
  • Competing with the company
  • Accepting commissions
  • Disclosing secrets without authorization

Note that this summary is based on the incomplete text you provided. If you have any further questions or need more information, feel free to ask!