Measures for Administrative Penalties on Securities and Futures-related Violations were promulgated on 14 July 2021, and entered into force on the same date.
There are 41 articles in total. The Measures aim to regulate the implementation of administrative penalties by the China Securities Regulatory Commission (CSRC) and its local offices, maintain the order of the securities and futures markets, and protect the legitimate rights and interests of citizens, legal persons and other organizations.
The key points are as follows:
Where natural persons, legal persons and other organizations shall be subject to administrative penalties for violating the provisions of laws, regulations and rules on securities and futures, the CSRC and its local offices shall impose administrative penalties in accordance with the procedures stipulated by the relevant laws, regulations and rules, as well as the Measures.
The CSRC and its local offices shall file a case if they discover that natural persons, legal persons and other organizations suspected of violating the laws, regulations and rules on securities and futures meet the following conditions, and do not fall under the circumstances under which administrative penalties shall be exempted in accordance with law: (1) there is a clear violator; (2) there is evidence to prove illegal facts; (3) there are specific legal liabilities for administrative penalties provided by laws, regulations and rules; and (4) the two-year limitation period for the administrative penalty has not lapsed. The five-year limitation period for administrative penalties has not lapsed if such violation involves financial security and causes harmful consequences.
Where the CSRC and its local offices discover in the course of an administrative penalty that an illegal act allegedly constitutes a criminal offense, the case shall be promptly transferred to the judicial authorities for handling in accordance with law. Where the judicial authorities do not hold the violators criminally liable or exempt them from criminal punishment in accordance with law, the CSRC and its local offices shall decide on administrative penalties in accordance with law if it is necessary to impose administrative penalties.