For The First Time In The History Of Capital Market, The Central Government Office And The State Council Jointly Issued A Document: Cracking Down On Securities Illegal Activities And Setting A Five-Year "Zero Tolerance" Regulatory Target

"Zero tolerance" crackdown on illegal activities in the capital market has been supported by top-level design.

On July 6, the general office of the CPC Central Committee and the general office of the State Council released the opinions on cracking down on securities illegal activities in accordance with the law (hereinafter referred to as the opinions). The opinions have 30 articles. They adhere to the direction of marketization and legalization, adhere to the establishment of systems, non intervention and zero tolerance, strengthen the construction of capital market infrastructure, and improve the system and mechanism of cracking down on securities illegal activities in accordance with the law, We should improve the judicial efficiency of law enforcement, effectively prevent and resolve major risks, and provide strong support for accelerating the construction of a standardized, transparent, open, dynamic and resilient capital market.

The opinions made a comprehensive and systematic arrangement for cracking down on securities illegal activities in accordance with the law. The main contents include: overall requirements, improving the legal responsibility system for illegal crimes in the capital market, establishing and improving the judicial system for cracking down on securities illegal activities in accordance with the law, strengthening the punishment of major securities violations and law enforcement in key areas We should further strengthen the judicial cooperation in cross-border supervision and law enforcement, strive to improve the judicial capacity and professional level of securities law enforcement, strengthen the construction of capital market credit system, and strengthen the organizational guarantee and supervision and accountability.

Regarding the release of the opinions, Yi Huiman, chairman of the China Securities Regulatory Commission, said in an interview with Xinhua news agency that this is the first time in the history of the capital market to jointly issue a special document to crack down on securities illegal activities in the name of the central office and the State Council. It is an action program for Comprehensively Strengthening and improving the securities supervision and law enforcement work at present and in the future, which is of great significance and far-reaching influence.

Outline the regulatory target of "zero tolerance" in capital market in the next five years

"The introduction of opinions is a new starting point for the modernization of capital market governance system and governance capacity. The securities regulatory system will strive to fully implement the objectives and tasks proposed in the opinions through three to five years of efforts, provide more solid legal guarantee for the construction of a standardized, transparent, open, dynamic and resilient capital market, and strive to make greater contributions to the realization of high-quality economic and social development. " Yi Hui is full of weight.

According to the opinions, by 2022, significant progress will be made in the construction of the legal responsibility system for illegal crimes in China's capital market. The judicial system for law enforcement and coordination mechanism for cracking down on securities illegal activities have been initially established. The cost of securities violations and crimes has increased significantly, and the frequent occurrence of major crimes has been effectively curbed, The relief channels for investors' rights have been smoother, and the order of capital market has been significantly improved.

In a longer period of time, by 2025, China's capital market legal system will be more scientific and complete, the judicial system of securities law enforcement with Chinese characteristics will be more perfect, the judicial transparency, standardization and credibility of securities law enforcement will be significantly improved, the connection between administrative law enforcement and criminal justice will be efficient and smooth, and a sound capital market ecology featuring law-abiding, normative, transparent, open and inclusive will be fully formed.

"Capital market plays an important role in financial operation. In recent years, the capital market is undergoing profound structural changes, and the market function is increasingly enhanced. The introduction of the opinions is conducive to creating a market ecology where all parties are willing to come and stay, so as to better serve the high-quality development of the economy. " Yi Huiman expresses.

Specifically, the opinions put forward that the amendment (11) of the criminal law and the new securities law will be implemented, the standards for filing and prosecuting criminal cases will be revised simultaneously, the relevant criminal judicial interpretation and judicial policies will be improved, the civil compensation system will be improved, the implementation of the representative litigation system for securities disputes will be accelerated, and the regulations on supervision and administration of listed companies, regulations on supervision and administration of securities companies, and regulations on supervision and administration of securities companies will be formulated The regulations on supervision and administration of the new third board market, measures for the implementation of the commitment of the parties to the administrative law enforcement of securities and Futures and other supporting laws and regulations have greatly increased the cost of violation of laws and regulations.

At the same time, the Opinions also made important arrangements for law enforcement and set up a coordination working group to crack down on illegal activities in the capital market; We should give full play to the system advantages of the Securities Crime Investigation Bureau of the Ministry of public security stationed in the Securities Regulatory Commission; To explore the establishment of the working mechanism of dispatched procurators in the CSRC; Perfect the judicial system and mechanism of securities cases; We will strengthen the construction of financial judicial forces in places where trading places such as Beijing and Shenzhen are located, and explore the overall planning of the jurisdiction and trial of criminal, administrative and civil cases in the field of securities and futures; Strengthen the construction of case handling and trial bases; We should strengthen the local territorial responsibility and study the establishment of an internal notification system for major illegal cases in the capital market.

Industry insiders believe that the "opinions" adhere to the "zero tolerance" requirement and make systematic and targeted deployment arrangements around cracking down on securities illegal activities according to law, which is of great significance to strictly investigate and deal with securities illegal and criminal cases, increase the investigation and punishment of major and important cases, and strengthen the deterrent effect.

Cross border and domestic efforts to crack down on illegal securities activities

While focusing on cracking down on illegal securities activities in China, the opinions have made it clear that China capital stock supervision will be strengthened.

Specific measures will be taken to deal with risks and emergencies of China capital stock company, and promote the construction of relevant regulatory system. In the future, China will revise the special provisions of the State Council on overseas share offering and listing of joint stock limited companies, clarify the responsibilities of domestic industry directors and regulatory authorities, and strengthen inter departmental regulatory coordination.

Ye Lin, a professor at the Law School of Renmin University of China, believes that the emergence of China capital stock has indeed brought vitality to the development of domestic private enterprises, and even filled the problem of insufficient supply of funds held by domestic capital to a certain extent. However, since the development of China capital stock, there have been a series of problems such as false statements and fraudulent issuance, and domestic investors can not share the benefits brought by the growth of enterprises in China. However, in such a high-level document as the opinions, the issue of China's capital stock accounts for a large part for the first time, and puts forward some directions to solve the problem, which shows that China's emphasis on cross-border supervision is continuously strengthened.

"Under the premise of opening up to the outside world, it is necessary to clarify which enterprises are suitable for listing and what rules to follow for listing." Ye Lin pointed out.

In addition to the issue of China's capital stocks, in the field of cross-border supervision, the Opinions also require the formulation of judicial interpretation and supporting rules of the provisions on the extraterritorial application of the securities law, refine the specific conditions for the extraterritorial application of laws, and clarify the law enforcement procedures and the effectiveness of evidence. We should strengthen the judicial work concerning foreign affairs in the capital market, and promote mutual recognition and enforcement of judicial judgments between foreign countries, regions and China.

"In recent years, the supervision has continued to emphasize the prominent role of the overall security concept and information security, and the release of the opinion is also the implementation of this overall requirement in the securities market." Guo Li, a professor at Peking University Law School, said.

Ye Lin further pointed out that recently, the US securities regulatory authorities require accounting firms to submit audit drafts for Chinese clients, and the relevant information constitutes generalized data to a certain extent“ China is actively exploring internationally to protect the interests and data security of all countries and investors under the premise of international cooperation. "

In response to cross-border supervision, the Opinions also made arrangements for strengthening punishment of major securities crimes and law enforcement in key areas.

The opinions put forward that major cases such as fraudulent issuance, false statement and insider trading should be investigated and dealt with strictly, promptly and seriously, and the accountability of the controlling shareholders, actual controllers, directors and supervisors of the issuer should be strengthened; We should strengthen the supervision of intermediary agencies, and impose heavier penalties on illegal acts such as participating in and assisting financial fraud according to law; We should improve the mechanism of inter departmental cooperation, resolutely ban illegal securities operating institutions, resolutely clean up illegal securities business, and resolutely crack down on illegal securities investment consulting activities; Strengthen the monitoring of off-site capital allocation and resolutely crack down on large-scale and systematic off-site capital allocation activities; Strengthen the connection between the administrative disposal of cases involving local trading places and judicial trial work; Strengthen the unified law enforcement of all kinds of illegal acts in the bond market, and optimize the supervision and cooperation mechanism of the bond market; We will accelerate the formulation of regulations on the supervision and administration of private investment funds.

"Activities such as over-the-counter capital allocation and illegal securities consultation are unlicensed. Without a license, they are far away from supervision, and the interests of investors will be harmed in the end." Ye Lin commented.

We will improve the punishment and incentive mechanism for dishonesty and improve the level of market integrity

In addition to improving the system and strictly enforcing the law to crack down on securities illegal activities, the opinion also requires strengthening the construction of the credit system of the capital market, promoting the addition of special provisions on credit construction in relevant laws and regulations, and consolidating the basic system of credit construction. At the same time, we should establish and improve the credit commitment system, establish and improve the integrity archives of the national capital market, and improve the credit information sharing mechanism.

"The core part of the capital market is the issue of credit." Ye Lin believes that this year's China Securities Regulatory Commission (CSRC) issued the revised "Regulations on banning entry into the securities market" to strengthen the construction of market credit. Guo Li also pointed out that a complete capital market credit system is to make each market subject responsible for its own behavior and benefit from good market performance.

Specifically, the opinions put forward that special clauses on credit construction will be added in relevant laws and regulations, the responsibility system of credit record subject in capital market will be established, the credit conditions, obligations and responsibilities of market participants will be clarified, and punishment and incentive for dishonesty in capital market will be carried out according to law and regulations.

A person close to the regulator disclosed to the reporter of the 21st century economic report that in the next step, the regulatory authorities will also promote the addition of special provisions on Integrity Construction in laws and regulations, such as the futures law, the regulations on the supervision and administration of listed companies, and the Interim Regulations on the management of private investment funds, so as to establish a credit record of the participants in the capital market by making it clear that the regulatory authorities have a good faith record, We should improve the punishment and incentive methods for dishonesty, constantly enrich the integrity supervision toolbox, give full play to the power of "combination fist" of collaborative supervision, and improve the level of market integrity.

In addition, the opinion proposes to establish a credit commitment system for administrative licensing of capital market, and clarify the scope of application and licensing matters. The credit commitment and its performance are included in the credit record as an important basis for supervision during and after the event. At the same time, we should establish and improve the integrity files of the capital market, and comprehensively record the credit information of the participants in the capital market.

Those close to regulators said that in the next step, the regulatory authorities intend to further improve the recording scope of credit information in the capital market, expand the coverage of information subjects and contents, and actively promote the sharing of credit information with other departments, judicial organs, local governments and relevant organizations. At the same time, with the help of intelligent, network, and scientific and technological technical means and tools, we should further strengthen the function of the integrity archives database system, strengthen the collection, query and publicity of information, strengthen the linkage punishment and collaborative supervision of the dishonest subjects in the capital market, improve the basic service ability of innovation supervision and increase the cost of illegal and dishonest.

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