Securities law compliance on the existence of difficulties and management recommendations

Abstract: In recent years, violations of China's securities companies gradually increased, which is within the company's legal compliance management, lack of compliance has a direct relationship. This article focuses on securities law compliance management company the moment the main problem cause analysis, and deal with the problems presented targeted recommendations for securities companies improve compliance management system, shaping the culture of compliance has a very important practical significance.

Keywords: securities companies, legal, compliance management, issues recommendations

First, the securities company's legal compliance with the meaning of China's securities industry for nearly 20 years of development, securities law compliance within the company gradually began to pay attention to it, as financial institutions face the risk of one of the core compliance risks, the securities company have the establishment of legal and compliance department responsible for compliance risk and compliance management of securities companies and therefore has become the core of risk management in the department, China Securities Regulatory Commission in the <<Securities and implementation of compliance management requirements>> for the second compliance is defined as: 'securities companies to develop and implement compliance management system, establish compliance management mechanism to foster a culture of compliance, compliance risk behavior prevention.' Therefore, the establishment of a sound compliance management system is to ensure that the legitimate securities company, important means of compliance management, but also to strengthen the core competitiveness of China's securities companies a good way, and China's securities regulatory system's compliance with significant changes in the impact.
Second, the securities company's legal compliance problems in the management August 1, 2008 from the China Securities Regulatory Commission issued <<Trial securities regulations compliance management>>, China's securities companies, legal compliance management system gradually established, but the securities company in-house legal compliance management is still a lot of problems, legal and compliance functions should have no role to play regularly, mainly face the following dilemma:

1 the independence of legal compliance within the company less than China's securities law compliance department because of its particularity required independent of the other departments of securities companies, showing the independence of compliance is valid prerequisite to achieve compliance, but our country securities firms in general there is lack of independence of the compliance management problem, the most important performance of senior management in compliance management, the company's internal control mechanism in many cases a mere formality, although the <<Securities Company implemented the provisions of the compliance management >> clearly the company's securities compliance management requirements with a certain independence, but due to the compliance department and even its own director of compliance by senior management on the indirect constraints, particularly in the pay and benefits and performance evaluation will be on by management effects, so the independence of the legal compliance can not be guaranteed.

(2) legal compliance management department responsibilities confuse

At present, China's securities companies, including the organizational structure of the general system of the board of directors, supervisors, business management, composed of various functional departments and branches. Organizational system under the various departments should be responsible for the operations of the department's regulatory compliance, and legal and compliance departments to the various departments for review of compliance, but more importantly, legal and compliance department's role is to identify the management of securities companies compliance risks, to ensure that securities firms may therefore appear to avoid compliance risks to the company's huge losses. between the current senior management of securities companies, securities companies compliance risk an important incentive for the outbreak, so they were legal and compliance department must focus on the business management of compliance behavior, but in practice very little legal and compliance department of business management, compliance management, and more is to examine the business of business is compliance, and business sector to escape liability, the legal compliance audit task entirely to legal and compliance department to audit, legal and compliance departments appeared to focus on the daily routine compliance business, ignoring the most important for the management of compliance work.
3 Legal and Compliance departments become full-time response to external regulatory agency of the securities company legal and compliance departments are not the economic business of securities companies, not directly generate economic benefits, many small and medium sized companies on securities law compliance compared to the building department business sector lags behind the economy, there is less staffing, management has not paid much attention and so even individual securities internal compliance management company, saying the legal and compliance departments to establish the purpose of characterization to meet external regulatory bodies monitoring on all of the duties placed with external regulatory agencies, 'public relations', and as long as the external monitor can respond freely, securities law compliance even if the company's completed.
4 Legal Compliance professional personnel, lack of compliance mechanism for the training of legal compliance of the securities company has just started in recent years, the demand for compliance professionals is not very big, often the company's securities law compliance department no more than five employees, legal and compliance department staff are mostly from the audit and risk management in the legal background of the staff have transferred over, but compliance with the legal requirements of the posts have a certain gap. With the recent margin trading and stock index futures and other financial innovations of new product introductions, legal compliance of the professional line personnel requirements more stringent, preferably with a compound talents in addition to its own in addition to a legal background necessary to master a number of financial, financial, computer expertise, but also to understand the other business of the work duties and work flow, showing that the legal compliance requirements of the professional personnel is relatively high, but within the company for securities compliance, but the training very seriously, the lack of as brokerage business as a mechanism for training, leading to legal compliance professional talent is obviously inadequate, high-quality team of legal and compliance personnel should be strengthened. Links to free download http://eng.hi138.com


Third, the securities company's legal compliance management recommendations 1, improve the internal management of legal compliance mechanism to ensure compliance of internal independence of the independence compliance has long been a shortfall exists, it is necessary to rationalize the legal and compliance departments and business management functions and the relationship, so I propose the legal and compliance departments, especially the compliance director appointment and removal, compensation, performance management, attendance must be independent of management, compliance director of the immediate supervisor should be for the Board of Directors, the Board of Directors directly responsible director of the division of compliance assessment should also be an independent assessment of compliance director, supervision by the Supervisory Board or Board of Directors In addition, legal and compliance departments should take the initiative to strengthen compliance, proactive compliance of other business units perform his duties, securities companies to ensure compliance operations.
(2) clarify the duties of compliance management departments, and promote full compliance of securities companies <<Trial securities compliance management requirements>> of Article III: 'compliance management of securities companies should cover all business companies, various departments and branches, all staff, through the decision-making, implementation, monitoring, feedback and other links. 'can be seen from the provision, management of legal compliance is not just a compliance department on the line, nor is it a legal responsibility for the compliance department In reality, the securities company's various business units within the departments, different types of contracts or investments, products and other business solutions to legal compliance department, 'countersigned', legal and compliance departments to bear the responsibilities of business compliance, so contrary to all member of the concept of compliance, so I propose, within the company to develop the relevant securities laws and compliance review of the main responsibilities of the compliance responsibility for the review clearly to all departments, and legal and compliance departments to focus on the review of the company's the institutional and operational management decisions, so that not only ensure the effectiveness of compliance management, and securities companies also contributed to the good atmosphere in full compliance.
(3) Strengthen the company's securities compliance culture securities company compliance culture is conducive to the concept of the employee's compliance with the daily operations associated with the compliance work consciously restrain themselves, help to reduce compliance risk securities companies Therefore I propose to build the company's compliance culture, the first to do their own legal and compliance departments to lead by example, compliance with laws and regulations and internal company regulations, followed by legal and compliance departments of the company's internal staff to conduct regular compliance training, and pay linked to performance and staff, for staff training in compliance awareness training in the third, let the business management to support the construction of promoting a culture of compliance, the proposed general manager or vice president of business management as a compliance culture person in charge of construction, served as deputy director of compliance, compliance culture conducive to the implementation of the policy of protection.
4 great importance to develop high-quality professional legal and compliance personnel present legal and compliance departments of securities companies is the status of compliance officers demand for small, but high requirements of professional features, often unable to recruit suitable staff of the phenomenon, which securities company's internal compliance management is detrimental to the development of talent are not very good supplementary seriously affect the quality of compliance, so I suggested that legal compliance training is a long-term work, companies can recruit from the annual The graduating students were selected out of potential, these students should have a complex type of professional background, and then one to two years in various positions of rotation, and then arranges the positions of legal compliance, this is conducive to legal compliance regulations of each business unit personnel are familiar with the process of working to facilitate the compliance, and compliance departments of the company's influence gradually strengthening.
Fourth, the conclusion of China's securities industry in recent years the rapid development of its business increasingly international, integrated and complex, compliance risk also will become complex, strengthen compliance risk management, not only the focus of the regulatory regime, Securities companies also strive for the goal, especially the <<Securities regulations compliance management pilot>> after the introduction of more and more securities companies established in-house legal and compliance management system, also set up a legal compliance department, full-time guard against the risk of internal compliance, but due to the current laws of China's securities companies just getting started building compliance, legal compliance there a lot of difficulties, especially lack of independence of compliance management, corporate culture, lack of compliance, professional personnel is not strong, and many other problems exist, China's securities law compliance management company to achieve the international level there is still a long way to go.

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