Order No.48 of China Securities Regulatory Commission
The Measures for the Administration of Futures Practitioners, which were deliberated and adopted at the 207th chairmen's utive meeting of China Securities Regulatory Commission, are hereby promulgated and shall come into force as of the date of promulgation.
Chairman of China Securities Regulatory Commission: Shang Fulin
July 4th, 2007
Measures for the Administration of Futures Practitioners
Chapter I General Provisions
Article 1 For the purpose of strengthening the qualification administration of futures practitioners and regulating the practices of futures practitioners, these Measures are formulated in accordance with the Regulation on the Administration of Futures Trading.
Article 2 Where any person applies for the qualification for futures practitioners （hereinafter referred to as practice qualification）, any institution engaging in futures trading business （hereinafter referred to as institution） employs any futures practitioner or any futures practitioner engages in the futures business, these Measures shall apply.
Article 3 The term "institution" as mentioned in these Measures refers to:
1. futures companies;
2. non-futures-company settlement members of futures exchanges;
3. futures investment consultant institutions;
4. institutions providing intermediary business for futures companies;
5. other institutions as determined by China Securities Regulatory Commission （hereinafter referred to as the CSRC）.
Article 4 The term "futures practitioners" as mentioned in these Measures refers to:
1. management personnel and professional personnel of futures companies;
2. management personnel and professional personnel of non-futures-company settlement members of futures exchanges who engage in the futures settlement business;
3. management personnel and professional personnel of futures investment consultant institutions who engage in the futures investment consultancy business;
4. management personnel and professional personnel of futures investment consultant institutions providing intermediary business for futures companies who engage in the futures trading business;
5. other personnel as determined by the CSRC.
Article 5 The CSRC and its dispatched offices shall supervise and manage futures practitioners according to law.
China Futures Association （hereinafter referred to as CFA） shall conduct self-discipline management on futures practitioners according to law, and shall take charge of the determination, management and cancellation of practice qualification.
Chapter II Acquirement and Writing-off of Practice qualification
Article 6 CFA shall be responsible for organizing the examination of practice qualifications.
Article 7 Anyone taking the examination of practice qualification shall satisfy the following requirements:
1. having attained to the age of 18;
2. having complete civil capacity;
3. having the educational background of high school or above; and
4. other requirements as prescribed by the CSRC.
Article 8 Anyone passing the examination of practice qualifications shall be issued a certificate on passing the examination of practice qualification issued by CFA.
Article 9 Where any personnel with the certificate on passing the examination of practice qualification intends to engage in the futures business, he shall apply to CFA for practice qualifications through the institution where he works.
No person without practice qualification may engage in futures business activities in any institution.
Article 10 Where any institution employs any personnel who has obtained a certificate on passing the examination of practice qualifications and satisfies the following requirements to engage in the futures business, it shall handle the formalities for applying for practice qualifications for him:
1. having good conduct and good professional ethics;
2. having been hired by this institution;
3. having not been subjected to any criminal punishment or any administrative punishment imposed by the CSRC or any other financial regulatory institution within the latest three years;
4. having not been banned by the CSRC or any other financial regulatory institution from accessing into the market, or the ban has expired;
5. having not been disqualified from engaging in the securities or futures business for any illegal behavior within the latest three years; and
6. other requirements as prescribed by the CSRC.
No institution may employ any personnel without practice qualification to engage in the futures business or has any fraudulent act in the process of application for practice qualification.
Article 11 Where any futures practitioner resigns, is dismissed or dies, the institution shall report it to CFA within 10 workdays since the date of occurrence of the circumstance, and CFA shall be responsible for writing off his practice qualification.
Where the relevant futures business license of an institution is revoked, CFA shall cancel the practice qualification of the practitioners working in the institution who engage in the corresponding futures business.
Article 12 Where any person who has obtained a certificate on passing the examination of practice qualification or whose practice qualification has been cancelled fails to practice in any institution for two consecutive years, he shall participate in the follow-up vocational trainings organized by CFA before applying for practice qualification.
Chapter III Practice Rules
Article 13 Futures practitioners must abide by the relevant laws, administrative regulations and provisions of the CSRC, observe the self-discipline rules of CFA and futures exchanges, and may not engage in, either by themselves or by collaborating with other people, such illegal behaviors as fraud, inside trading, manipulating futures trading prices, making up and disseminating futures trading-related false information, etc.
Article 14 A futures practitioner shall observe the following practice norms:
1. being honest, keeping faith, fulfilling duties with due diligence, facilitating the standard and legal operation of the institution he works, and safeguarding the reputation of the futures industry;
2. providing services for clients with professional skills in a prudent and diligent manner, keeping clients' trade secrets and safeguarding their legitimate rights and interests;
3. disclosing the risks involved in futures trading to the largest extent when providing professional services to clients, and not making any inappropriate promise or guarantee;
4. in case his own interest or the interest of any related party is conflict or potential conflict with the interest of a client, disclosing the situation to the client in a timely manner and handling the issue by following the principle of giving priority to the legitimate interests of clients;
5. having good professional ethics and awareness of observing laws, declining commercial bribes and keeping away from unfair competition or illegitimate tradings;
6. not damaging public interests, the legitimate rights and interests of the institution he works or other people for catering any client's unreasonable request;
7. not engaging in futures trading in the name of his own or other people; and
8. other practice norms as determined by CFA.
Article 15 Futures practitioners of futures companies may not commit any of the following behaviors:
1. making false publicity, beguiling any client into participating in futures trading;
2. embezzling any client's cover cost or other assets; or
3. other behaviors as prohibited by the CSRC.
Article 16 Futures practitioners working in non-futures-company settlement members of futures exchanges may not commit any of the following behaviors:
1. damaging the legitimate rights and interests of non-settlement members and their clients by taking advantage of settlement business connections and the settlement information obtained therefrom;
2. engaging in futures trading on behalf of clients in the form of proxy; or
3. other behaviors as prohibited by the CSRC.
Article 17 Futures practitioner of futures investment consultant institutions may not commit any of the following behaviors:
1. providing or spreading false or misleading information via mass media or by other means;
2. engaging in futures trading on behalf of clients in the form of proxy; or
3. other behaviors as prohibited by the CSRC.
Article 18 Futures practitioners working in institutions which provide intermediary services for futures companies may not commit any of the following behaviors:
1. collecting, paying, depositing, withdrawing or transferring cover cost;
2. engaging in futures trading on behalf of clients in the form of proxy; or
3. other behaviors as prohibited by the CSRC.
Article 19 Where any institution or any of its managers gives an illegal order to a futures practitioner, the futures practitioner shall refuse to ute the order and shall report it to the senior managers or the board of directors in accordance with the internal procedures of the institution. The institution shall take steps to handle it properly in a timely manner.
In case the institution fails to handle the issue properly, the futures practitioner shall report the situation to the CSRC or CFA in a timely manner, which shall keep the reporting of the futures practitioner secret.
No manager or other relevant personnel of the institution may take revenge on the futures practitioner for his aforesaid reporting act.
Chapter IV Supervision and Management
Article 20 The CSRC shall guide and supervise the self-discipline management activities conducted by CFA against futures practitioners.
Article 21 CFA shall establish a data base of futures practitioner information, publish and update the registration of practice qualification, record of good faith and other relevant information in a timely manner.
The CSRC and its dispatched offices shall perform supervision duties, and in case they need CFA to provide the information and materials of any futures practitioner, CFA shall provide such information in a timely manner.
Article 22 CFA shall organize follow-up vocational trainings for futures practitioners to improve their professional ethics and quality.
Futures practitioners shall participate in the follow-up vocational trainings as required, and the institutions they work shall offer assistance and provide necessary safeguards.
Article 23 CFA shall conduct regular or casual inspections on the practices of futures practitioners, and futures practitioners and the institutions they work shall cooperate with CFA.
Article 24 Where any futures practitioner violates these Measures or the self-discipline rules of CFA, CFA shall investigate and take disciplinary action against him.
Where any futures practitioner is suspected of being involved in any violation of law or rules and deserves to be subject to the administrative punishment of the CSRC, CFA shall transfer him to the CSRC in a timely manner.
Article 25 CFA shall establish a special discipline and grievance institution, which shall formulate the relevant systems and work procedures, give disciplinary punishment to the relevant futures practitioners in accordance with the prescribed procedures and safeguard the complaint right and other rights of each party concerned.
Article 26 CFA shall, within 10 workdays since the date when it makes a decision on giving a disciplinary punishment to a futures practitioner, report the situation to the CSRC and its relevant dispatched office, and publish it on the website of CFA.
Article 27 Where a futures practitioner has been punished by the institution he works, or his act in engaging in futures business is suspected of a violation of law or rules and has been investigated and handled, the institution shall report the situation to CFA within 10 workdays since that date when it makes the decision on giving a punishment or becomes or should become aware of the violating issues investigated and handled.
Article 28 CFA shall report the relevant situation on the management of futures practitioners to the CSRC on a regular basis.
Article 29 In case any futures practitioner violates any provision of the present Measures, the CSRC or its dispatched institution may adopt regulatory measures against him, e.g., ordering him to make correction, having a talk with him, issuing to him a letter of admonition, etc.
Article 30 The specific measures for the self-discipline management of futures practitioners, including those governing the examination of practice qualification, registration and announcement of practice qualification, practice norms, follow-up vocational trainings, inspections on their practices, disciplinary punishment and appeals, etc., shall be formulated by CFA and reported to the CSRC for approval.
Chapter V Penalty Provisions
Article 31 Where anyone engages in the futures business without obtaining the practice qualification, the CSRC shall order him to correct, give him a warning and singly or concurrently impose a fine of no more than 30,000 yuan upon him.
Article 32 In case any of the following behaviors occurs, the CSRC shall give a punishment in accordance with Article 70 of the Regulation on the Administration of Futures Trading:
1. employing any personnel without practice qualification to engage in the futures business;
2. falsifying in the process of applying for practice qualification;
3. failing to fulfill the cooperation obligation as provided in Article 23 of these Measures; or
4. failing to fulfill the reporting obligation as required by Article 27 of these Measures or including false content into the reporting materials.
Article 33 Where anyone violates the provision of Article 19 of these Measures by taking revenge on any futures practitioner, the CSRC shall give a punishment in accordance with Article 70 and Article 81 of the Regulation on the Administration of Futures Trading.
Article 34 Where any futures practitioner violates any law or rule, the CSRC shall impose an administrative punishment on him according to law. But if he was forced to ute an illegal or rule-breaking order and has performed the reporting obligation in accordance with the provision of Article 19 （2） of these Measures, the punishment upon him may be the one which is lighter, be mitigated or even exempted.
Article 35 Where any worker of CFA fails to perform his duties according to the provisions of these Measures, has any malpractice, neglects his duties or intentionally creates difficulties for the relevant parties concerned, CFA shall impose a disciplinary punishment.
Chapter VI Supplementary Provisions
Article 36 These Measures shall come into force as of the date of promulgation. The Administrative Measures for the Qualification of Futures Practitioners （Amendment） （No.6 [2002] of China Securities Regulatory Commission） promulgated on January 23rd, 2002 shall be abolished simultaneously.
