The securities firm should sign entrustment contracts with securities brokers who accept such entrustment, issue securities broker certificate, define authorized scope of securities broker and supervise working behavior of securities broker.

Article 5 By obeying national regulations, securities firms can issue, trade and sell securities financial products.

In 1997, the United States Treasury began to issue inflation linked securities.

National White Collar Crime Center, WCC Issue Paper, Securities fraud , June 2003.

The authorities will issue 35.2 billion in new securities, comprising 15 billion in par bonds, 11.9 billion in discount bonds and 8.3 billion in quasi par bonds.

Article 26 If a securities firm and its domestic branch are engaged in securities business prescribed in Article 125 of the Securities Law, they should follow the Securities Law and provisions of this Regulation.

Article 38 If a securities firm is engaged in securities brokerage business, it can entrust staff outside of the securities firm as securities broker, engaging in attracting and providing service for customers as agent.

Article 41 A securities firm engaged in securities business for its own account is limited to trading of legally issued stocks, bonds, warrants, securities investment funds or other securities recognized by the securities regulatory agency under the State Council.

Article 37 If a securities firm is engaged in securities brokerage business, it should audit whether capital and securities in customer s account are sufficient or not.

The securities broker should have securities working qualification.

Article 20 If a securities firm has two or more kinds of securities brokerage business, securities assets management business, financing with capital and securities, securities underwriting, securities sponsors, its board should set up remuneration and nomination committee, auditing committee and risk control committee to perform rights prescribed in company regulation.

Without securities business license, the securities firm and its domestic branch shall not run securities business.

Article 48 Securities lending and borrowing referred to in this article means that in the securities trading at the stock exchange or other securities trading places that have been approved by the State Council, securities firms lend capital or securities to customers for them to buy or sell securities based on the corresponding collaterals provided by the customers.

Securities...

Article 50 A securities firm that carries out securities lending and borrowing business shall sign a securities lending and borrowing contract with the customer, and shall open a customer securities guarantee account with the securities registration and settlement organs, and a customer funds guarantee account with the designated commercial bank in the name of the securities firm in accordance with the provisions of the securities regulatory agency under the State Council.

Securities brokers should work within authorized scope of the securities firm and show securities broker certificates to customer.

3 Trade securities or maneuver securities market with insider information

(5) Securities service agencies provided services for a securities firm.

Article 46 A securities firm engaged in securities assets management business shall not have the following act

Article 56 Where a securities firm carries out securities lending and borrowing but does not have sufficient funds or securities, it can borrow from the securities financial companies.

If the securities firm closes all securities business, disbands, goes bankruptcy or revokes domestic branch, it should publicize in newspaper appointed by the securities regulatory agency under the State Council and submit securities business license to the securities regulatory agency under the State Council for deregistration based on regulation.

Loading securities...

Securities brokers shall not handle securities subscription or trading for customers.

Article 44 If a securities firm is engaged in self run securities business, its risk controlling indicators such as ratio of total securities value and company net capital, ratio of value of one type of securities and net corporate capital, and ratio of quantity of one type of securities and total issuing quantity of this type of securities should comply with prescription of the securities regulatory agency under the State Council.

Article 45 A securities firm can be engaged in securities assets management business by accepting customer s entrustment or using customer s assets according to the Securities Law and this Regulation.

Article 29 The securities firm that is engaged in securities assets management business, capital and securities financing business, securities related finance product sales should get knowledge of identity, property, income status, securities investment experience and risk preference of customers according to prescribed procedure, and record as well as keep the information in written or electronic form.

Article 43 The securities firm shall not have the following behavior while being engaged in self run securities business

1 Customers purchase of securities, settlement of securities trading or customers withdrawal

A securities firm mentioned in item 1 of this article refers to an unincorporated entity with business operation under the securities firm such as branch company and securities business outlet.

(3) Where a securities firm, an asset management agency, a securities registration and clearing agency use trading settlement funds, trust funds and funds and securities in secured accounts of clients in violation of provisions

1 Illegally buying securities issued by shareholder of the securities firm or other issuer with major relationship to securities firm against regulation

Article 96 The securities registration and clearing agency hereof refers to the securities registration and clearing agency prescribed in Article 155 of the Securities Law of the People s Republic of China.

(ii) Securities Act

(g) Securities regulation

If a securities firm is engaged in securities assets management business, it should sign securities assets management contract with customers, defining investment scope, investment ratio, management period, management cost and so on.

Article 32 A securities firm should establish information inquiring system to ensure customers inquiring entrustment record, trading record, securities and balance during business hours of the securities firm, as well as other information such as name, practice license of the business operator and securities broker of the securities firm, certificate number of securities broker, etc.

Article 14 Any unit or individual in any of the following circumstances shall inform the securities firm in advance and the securities firm shall apply to the securities regulatory agency under the State Council for approval

Securities account opened by the securities firm for securities assets management customer should be submitted to stock exchange for filing within 3 trading days.

Article 31 If a securities firm is engaged in such businesses as securities assets management and capital and securities financing, it should develop reconciliation statement and send it to customers on monthly basis.

The securities firm shall not provide customer s capital account and securities account to others.

Article 28 When the securities firm is entrusted by securities registration settlement agency to open securities account for customers, it should audit name and identity authenticity declared by customers according to management rule of securities account.

Article 8 Setting up a securities firm requires meeting the conditions prescribed in the Company Law, the Securities Law as well as this Regulation, and approval from securities regulatory agency under the State Council.

Except for circumstances prescribed in Article 54 of this Regulation or other agreements reached by the securities firm and customers according to law, the securities firm shall not use the securities or fund in the customer guarantee accounts.

(2) Where any securities broker who engaging in businesses does not present his her certificate of securities broker to his her client

For example, in the United States of America, securities regulators estimate that securities and commodities fraud totals approximately 40 billion a year.