CSRC: Explicitly supports and encourages the implementation of advance compensation

Zhitong Finance APP has learned that on October 19, the China Securities Regulatory Commission (CSRC) publicly solicited opinions on the Guiding Opinions on Advance Compensation in the Securities Market, with the deadline for feedback being November 18, 2026. The Guiding Opinions consist of 21 articles and mainly cover five aspects. Among them, it explicitly supports and encourages the implementation of advance compensation. First, on the basis of the Securities Law provision that the entity subject to advance compensation has the right to seek recovery, it further clarifies that, for the purpose of recovery, the entity subject to advance compensation may obtain materials on the advance compensation from the Investor Protection Fund Corporation after making advance compensation (Article 15). Second, it clarifies that the CSRC may, in accordance with laws and regulations, take the relevant circumstances of advance compensation into consideration as factors in administrative licensing review, administrative penalty discretion, and the supervision and administration of integrity in the securities and futures markets (Article 18).