Multiple measures to consolidate the responsibilities of bond market intermediaries and allow gatekeepers to play a role

Summary

[Molteplici misure per compattare le responsabilità degli intermediari del mercato obbligazionario e lasciare che i “gatekeeper” svolgano un ruolo]According to China Government Network news, on the 21st the State Council Financial Stability and Development Committee held its 43rd meeting to study and regulate the development of the bond market and maintain the stability of the bond market works. The meeting presented five requirements for the effective performance of territorial supervision and responsibilities, “zero tolerance” to combat violations of laws and regulations, maintain fairness and order in the bond market, strengthen self-discipline and industry supervision, strengthen departmental collaboration, deepen bond market reform and establish and improve market systems. (Shanghai Securities News)

According to news from the Chinese government website, on the 21st, financial stability and development of the State CouncilCommittee(Hereinafter referred to as the “Financial Commission”) held the 43rd meetingmeeting, Specific searchBondmarketDevelopment and maintenanceBond marketstableworks. The meeting presented five requirements for the effective implementation of territorial supervision and responsibilities, “zero tolerance” to crack down on violations of laws and regulations, maintain fairness and order in the bond market, strengthen self-discipline and supervision industry, strengthen departmental collaboration, deepen bond market reform, and establish and improve market systems.

The reporter learned from relevant persons close to the supervisory level that the China Securities Regulatory Commission will further strengthen brokerage agencies in accordance with the “system building, non-intervention and zero tolerance” requirements, improving the system, promoting supervision classified and increasing the cost of violations of laws and regulations by intermediaries. Oversight, continue to urge intermediary agencies to return to their positions, strengthen risk prevention and control at source, and protect the legitimate rights and interests of bond market investors.

The meeting of the financial committee stressed that Inational debtThe reform of the securities market and the opening continue to deepen, servingReal economyThe functions continue to be improved and the global market is functioning constantly. The recent increase in cases of default is the result of the overlap of cyclical, institutional and behavioral factors. We must adhere to the general tone of the pursuit of progress by maintaining stability and, in accordance with the principles of commercialization, legalization and internationalization, manage the relationship between promotion of development and risk prevention and promote the sustainable and healthy development of the bond market.

The meeting stressed that to strengthen self-discipline and supervision of the sector and strengthen market restriction mechanisms.enterpriseisshareholder, Financial institutions, intermediary agencies, etc.Market OperatorsWe must strictly comply with the laws, regulations and rules of the market, adhere to professional ethics, be diligent, honest and trustworthy, and effectively prevent moral risks.

In this regard, Professor Li Youxing of Zhejiang University Law School said that brokerage agencies are diligent, responsible, honest and trustworthy, which is to maintain a good bond market.creditThe foundation of ecology is also the guarantee for the high quality development of the bond market and multiple steps should be taken to consolidate the responsibilities of intermediary agencies and give full play to the role of gatekeeper.

Various intermediaries are important participants in capital market investments and financing activities. According to professionals, in the bond market, intermediary agencies should provide bond underwriting, due diligence and verification through diligent, prudent and professional inspections.audit, legal,Credit ratingProviding professional services such as improving the quality of information disclosure, preventing various bond fraud, full participation in the role of the bond market in direct financing allocation resources, and protecting the legitimate rights and interests of bond issuers and of investors. In recent years, with the increase in the degree of marketization of the bond market,Rigid paymentGradually broken, tiesMarket intermediaryThe role of institutional gatekeepers is more important.

The reporter learned from competent people close to the supervisory level that in recent years the China Securities Regulatory Commission has steadily strengthened the construction of the bond market infrastructure and strengthened the oversight of brokerage agencies. In daily supervision and on-site inspections, in particular for the elimination of the risks of relevant bond insolvency, it emerged that some intermediaries wereCompliance managementThere are still shortcomings in the performance of due diligence and risk prevention and control. For example, in the underwriting process, there are problems such as heavy tenders, light commitments and insufficient due diligence; in terms of entrusted management, there are problems such as inactive fulfillment of duties and inability to control the timely communication of the issuer’s information; fraudulent issuance, Information disclosure and fraud and other serious violations of laws and regulations, relevant underwriting agencies,accountingNeither the consulting firm nor the rating agency were diligent and responsible and found out in time.

It is reported that, in the next stage, the China Securities Regulatory Commission will further strengthen the supervision of intermediary agencies in accordance with the “system establishment, non-intervention and zero tolerance” requirements, will continue to urge intermediate agencies to return to their positions, focus on strengthening risk prevention and control at source, and effectively protect the legitimate rights and interests of investors.The oversight department will begin working in three areas: first, improve the system and further clarifythe companyDue diligence in the business of underwriting bonds,draftThere is a need to improve the system of rules of thumb of intermediary agencies.The second is to promote classified oversight, insist on supporting the advantages and limiting the disadvantages, and oversee compliance of intermediary agencies to conduct business and gradually reduceExternal ratingDependence promotes the formation of a governance constraint mechanism with clear responsibilities, equivalent sanctions and symmetrical responsibilities and rights. The third is to increase the cost of violations of laws and regulations by intermediary agencies, further strengthen daily oversight and on-site inspections, and strengthen the accountability of agencies and staff who violate regulations.

(Source: Shanghai Securities News)

(Responsible publisher: DF380)