China Securities Regulatory Commission
China Securities Regulatory Commission further regulates the implementation of administrative penalty fines and confiscations.
htmlOn September 30, the CSRC stated that in order to better implement the " Opinions on Strictly Cracking Securities Illegal Activities in accordance with the Law, ", in accordance with relevant regulations and in combination with the implementation of fines and confiscations by the CSRC, the "Rules for Implementation of Administrative Penalties and Confiscations (Draft for Comments)" (hereinafter referred to as the "Opinions") was formed, and opinions were solicited from the public. The deadline for feedback on opinions was October 30.Overall, the "Opinions" have a total of 33 articles, providing a full-process and a work flow that can be followed for the execution of fines and confiscations. At the same time, the contents of unclear legal provisions or in the past vague areas have been further clarified.
So, what are the specific provisions on the implementation of fines and confiscations? What is the clarification of suspending and installment payment of fines? What is the necessity of the issuance of the "Opinions"? The Paper reporter sorted out seven key points.
Point 1: When investigating a case, the property status of the parties should be understood and recorded simultaneously, and the executable status of the parties should be evaluated simultaneously. The "Opinions" clearly state that when conducting case investigations, the CSRC and its dispatched agencies should simultaneously understand and record the property status of the parties, including but not limited to fund accounts, securities accounts, bank accounts, and other account information with payment, custody, liquidation and other functions.
The "Opinions" require that during the case trial and punishment process, the property status of the parties should be paid simultaneously to evaluate the enforceability. If the parties have or may transfer or conceal illegal funds, securities and other property involved in the case, they should apply for freezing or seizure in a timely manner according to the case trial situation and implement it in accordance with relevant regulations.
The "Opinions" point out that if the preliminary investigation department has taken measures to freeze and seal, it should conduct an assessment based on the trial situation and make good connections.
Point 2: If there are three situations in legal persons or non-legal person organizations, they may apply for a suspended or paid a fine in installments
The "Opinions" clearly state that if there are indeed financial difficulties and need to suspend or pay a fine in installments, the parties shall submit a written application to the China Securities Regulatory Commission or the dispatched agency that made the penalty decision before the expiration of the performance period determined by the administrative penalty decision, and attach relevant certificates that can prove their financial difficulties and a plan to suspend or pay a fine in installments.
Among them, if the parties are legal persons or non-legal persons, if there are one of three situations, they can apply for a suspended or paid a fine in installments. Specifically:
1. First, funds are raised by disposing of assets, etc., and the turnover time is insufficient.
Second, it is necessary to maintain daily operations and may face suspension of work and production after paying a fine at one time.
Third, other economic difficulties.
Point 3: If a natural person has one of four situations, he or she may apply for a suspended or paid a fine in installments
The "Opinions" stipulate that if the party is a natural person, if one of the four situations, he or she or she may apply for a suspended or paid a fine in installments:
1. It is caused by significant losses due to force majeure.
Second, it requires a lot of money to treat a serious illness of the person or his family member.
Third, it is because funds are raised through selling, mortgaged real estate, etc., and the capital turnover time is insufficient.
4 is other economic difficulties.
Point 4: If a natural person applies for payment of a fine in installments, the amount of the fine should not be less than 1 million yuan
The "Opinions" stipulate that if the party applies for payment of a fine in installments, the legal person or non-legal person organization shall not be less than 5 million yuan.
If a natural person applies for payment of a fine in installments, the amount of the fine should not be less than 1 million yuan.
Point 5: The period of suspension of payment shall not exceed six months, and the period of payment of installments shall not exceed three years
The "Opinions" clearly state that if the parties suspend payment of fines, the period shall not exceed six months. If the party pays the fine in installments, the period shall not exceed three years.
At the same time, the "Opinions" stipulate that if the parties apply for a temporary suspension of payment of fines or installment payment of fines, the approval shall be made by the head of the China Securities Regulatory Commission or the head of the dispatched agency.If the parties approve the suspension or payment of fines in installments, a "Notice of Approval of Delayed/Installed Payment of Fine" should be prepared and delivered to the parties.
The "Opinions" further point out that if the parties are temporarily suspended from payment or pay a fine in installments after approval, they shall not apply again if they fail to perform on time.
Point 6: If the fines and confiscations are not fully paid within the time limit, they should be recorded in the securities and futures market integrity file database
The "Opinions" clearly state that if the parties fail to fully pay the fines and confiscations after the performance period stated in the administrative penalty decision expires, in addition to allowing the parties to suspend or pay the fine in installments, the China Securities Regulatory Commission and its dispatched agencies should be recorded in the securities and futures market integrity file database, and may take restrictive measures such as punishment for breach of trust on the parties as required.
At the same time, during the reminder, it is found that the parties involved have mergers, reorganizations, cancellations, dissolutions, bankruptcy, or personal whereabouts, as well as transferring assets and suspected of evading the obligation to perform fines and confiscations, they should collect, fix relevant evidence and keep records, and take measures such as seizure and freezing, and declaration of debts in a timely manner, which are conducive to the execution of fines and confiscations, as appropriate.
Point 7: The issuance of the "Opinions" is necessary to have two aspects
Regarding the issuance of the "Opinions", the China Securities Regulatory Commission stated that in recent years, I will insist on cracking down on all kinds of illegal and irregular behaviors. For cases with serious circumstances and relatively bad impacts, I will take a heavy blow and impose a maximum penalty.
"In recent years, the total amount of fines and confiscations of the CSRC has increased rapidly, which has also put forward higher requirements for the execution of fines and confiscations. Therefore, it is necessary to introduce special rules for the execution of fines and confiscations, and it is also a practical necessity to implement the work requirements of 'zero tolerance'." The CSRC emphasized.
The CSRC pointed out that on the one hand, the issuance of the "Opinions" is conducive to further standardizing the implementation of fines and confiscations. The execution of fines and confiscations is the last link in the administrative law enforcement chain of the CSRC. It involves complicated content, many links, detailed work and strong timeliness. The issuance of special rules of our association is conducive to unifying the organization and process of the execution of fines and confiscations, thereby strengthening the standardization of the implementation of the China Securities Regulatory Commission.
"On the other hand, it is conducive to improving the effectiveness of execution work. Compared with many administrative agencies, the amount of fines and confiscations in the law enforcement field is relatively large." The China Securities Regulatory Commission said.
The CSRC further pointed out that if it is really difficult for the parties to pay some large fines in one go, the "Rules" will clarify the suspended and installment payment system, which will help urge the parties to pay the fines and improve the effectiveness of the execution work.
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