On 1 September 2008, the CSRC promulgated a notice to solicit public opinions on the draft rules on the administration of securities brokers.
The aim of the draft rules is to tighten up regulation of securities brokers, including their business and sales activities, internal supervisory systems, professional qualifications, contracts of engagement, licensing requirements, scope of business, etc.
Securities brokers are prohibited from engaging in the following activities:
- surpassing their authority by manipulating customers' accounts or providing investment counseling;
- offering or spreading false or misleading information, or soliciting customers to make unnecessary deals;
- entering into agreements on sharing investment proceeds with customers; and
- promising gains or compensation for losses.