China Securities Regulatory Commission published "Decision on Amendment"

This modification changes the title from "Regulations on Categorization Supervision of Securities Companies" to "Regulations on Categorization Evaluation of Securities Companies", which is aligned with the content focusing on categorization evaluation. The main modifications include: 1. Emphasizing the promotion of the functions of securities companies. The evaluation framework is adjusted to "risk management capabilities, continuous compliance status, business development, and functional performance", and emphasizes this direction in terms of business scoring, special evaluation settings, and so on. 2. Guiding securities companies to focus on high-quality development. Key improvements will be made to the business development scoring indicators, guiding securities companies to improve the quality of operations, and better utilize their professional service capabilities in areas such as introducing medium to long-term funds and wealth management. The coverage of key business scoring will be appropriately expanded to encourage small and medium-sized institutions to explore differentiated development paths based on their own strengths. 3. Emphasizing the direction of "crackdown on major misconduct", and strengthening comprehensive penalties. Improvements will be made to the scope of direct downgrading of categorization ratings, maintaining the deterrent strength against major malicious cases. According to the principle of "fair punishment", the point deduction values for disciplinary sanctions related to qualifications will be appropriately increased, administrative penalty point deduction values will be optimized, point deduction gradients will be reasonably set, and the comprehensive penalty effect of various regulatory measures will be promoted. 4. Summarizing the previous experience of categorization evaluation, and clarifying the rules for handling special issues. For example, for companies suspected of illegal or non-compliant activities but actively applying for administrative law enforcement, committing to early compensation, etc., the deduction point values will be appropriately reduced.