To implement the decisions of the Third Plenary Session of the 20th CPC Central Committee, the Central Financial Work Conference, and the "State Council's Several Opinions on Strengthening Supervision, Preventing Risks, and Promoting High-Quality Development of Capital Markets" (Guo Fa [2024] No. 10) regarding improving the industry institution classification supervision system, establishing incentive and constraint mechanisms for serving the real economy, emphasizing "supporting the excellent while restricting the poor," and supporting differentiated development and specialized operations of small and medium-sized institutions, the China Securities Regulatory Commission has amended the "Securities Company Classification Supervision Regulations" (hereinafter referred to as the "Regulations"), which will take effect from August 22, 2025.
The Regulations were open for public comment from June 20. All parties generally agreed with the amendment approach and content. The CSRC carefully studied each piece of feedback, fully absorbed reasonable opinions, and correspondingly revised and improved the Regulations.
The overall approach to these amendments includes three aspects: First, maintaining goal orientation. In line with requirements for risk prevention, strengthened supervision, and promoting high-quality development, the amendments specifically highlight regulatory objectives, correct industry institution positioning, improve governance levels, and effectively utilize the regulatory "baton" function. Second, maintaining overall stability. The current securities company classification evaluation system framework is generally mature, so these amendments focus on local improvements and moderate optimization without major adjustments to the existing evaluation system. Third, strengthening coordination. Working with the Securities Association of China to streamline and integrate special evaluation indicators, avoiding duplicate reporting and reducing industry burden.
This amendment changes the title from "Securities Company Classification Supervision Regulations" to "Securities Company Classification Evaluation Regulations" to align with the regulation content that primarily focuses on classification evaluation. Main amendment content includes: First, highlighting the promotion of securities companies' functional performance. The existing evaluation framework has been adjusted to "risk management capability, continuous compliance status, business development and functional performance status," emphasizing this orientation in business bonus points and special evaluation settings. Second, guiding securities companies to focus on high-quality development. Key improvements to business development bonus indicators guide securities companies to enhance operational quality and better utilize professional service capabilities in areas such as introducing medium and long-term funds and wealth management; appropriately expanding the coverage of key business bonus points to encourage small and medium-sized institutions to explore differentiated development paths based on their own characteristics. Third, highlighting the "target major and serious violations" orientation and strengthening comprehensive punishment. Improving the scope of direct downgrade classification ratings to maintain deterrent effect against major malicious cases. Following the principle of "proportionate punishment," appropriately increasing deduction points for "qualification penalty" disciplinary actions, optimizing administrative penalty deduction points, and reasonably setting deduction gradients to promote the comprehensive punitive effect of various regulatory measures. Fourth, summarizing previous classification evaluation experience and clarifying handling rules for special issues. For example, appropriately reducing deduction points for companies suspected of violations but actively applying for administrative enforcement party commitments and conducting advance compensation.
Moving forward, the CSRC will implement the Regulations effectively, continuously improve the industry classification supervision system, promote the construction of first-class investment banks and investment institutions, and better serve the real economy and high-quality development of capital markets.
