By: Hou Jiening
Compiler: Fund China

Reporters recently learned that a securities company to pay the Securities Investor Protection Fund rules is being drafted, and would soon be issued to the Corporation, when the Corporation in accordance with the provisions of this rule to protect the funds to pay.

According to the understanding, Prior to publication in accordance with the “Securities companies pay the Securities Investor Protection Fund for the implementation approach (test)”, Starting from this year, Securities companies should be according to operating income of 0.5% -5% to the protection fund companies pay protection fund. Meanwhile, the Corporation advances to the annual two-protection funds, annually on July 15 before the first half to be paid to the protection of the Fund included in the conservation fund companies designated accounts, The next year on January 15 before the annual supplementary payment to be paid to the Conservation Fund.

Meanwhile, “Securities companies pay the Securities Investor Protection Fund for the implementation approach (test)” have clearly require securities companies pay to protect base The pay differential ratio. Fund companies under the protection of the China Securities Regulatory Commission for the regulation of securities companies classification, identify the securities companies pay to the Fund for the Protection of the specific proportion of the China Securities Regulatory Commission for approval, subject to annual adjustment.

“Although the pilot scheme has been gaining on the payment provision, but specific details of the payment is not clear, therefore, brokerage firms, in fact, not started payment, “from a news reporter who was informed. He disclosed that at present, the regulatory authorities are being developed to protect the brokerage firms to pay expenses of the Fund’s rules, Rules of the brokerage firms will conduct a detailed breakdown The classification of the previous categories and norms innovation category of the brokerage firms under the framework of the classification on the basis of a more detailed breakdown, Then according to different risk categories to determine the specific payment ratio, high-risk securities brokerages will be a higher proportion of funds to pay protection fees.

It is understood that the Securities Investor Protection Fund’s major sources including five aspects : Shanghai and Shenzhen stock exchange transaction fee of 20% into the fund; All registered in China’s securities companies, according to operating income of 0.5 to 5% pay Fund; the issuance of stocks and convertible bonds and other securities, Initial funding freeze interest income; according to the responsible party to recover proceeds from the Securities and bankruptcy liquidation compensation income; domestic and foreign institutions, organizations and individuals to donate, and other lawful income.

“Ultimately, the company started with the Securities Protection Fund to pay the costs, Investors will become the compensation fund one of the most important sources, “one industry said this, he pointed out, Fund set up to protect the main purpose for the acquisition of bankrupt and closed or revocation of the Corporation’s various claims, and cover by these securities companies misappropriated customer margin gap. Investor Protection Fund and the biggest risk comes from the brokerage firms, so the “ayes” fair move. Grading the brokerage firms according to the risks pay their dues, once occurred in a particular brokerage firms collapse, bankruptcy, can use this fund to make up for the loss of investors.

An industry just rough out that in 2006 China Securities industry realized sales revenue of about 60 billion, then This reference to the protection of the funds of funds will be 300 million to 3 billion.

Copyright Fund China 2008.

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