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Transcript of COMPARATIVE ANALYSIS OF ASIAN SECURITIES REGULAORS · PDF file30.01.2017 · 7th...

  • 1

    (Compiled as of 30 January, 2017)

    7th COMPARATIVE ANALYSIS OF ASIAN SECURITIES REGULAORS & SROs

    AND

    MARKET CHARACTERISTICS

    (Data and information provided by participating organizations in the 12th ASF Tokyo Round Table)

    CONTENTS

    I. Basic Organizational Features

    I 1. Organization Type, Statutory Basis

    I 2. Number of Staff, Funding Source and Number of Member Firms

    II. Regulatory Framework of the Securities Markets of Each Country

    III. Regulation & Self Regulation

    III 1. Major Rule Making Functions of each Organization

    III 2. Qualification System for Market Professionals

    III 3. Training System for Employees/Sales Representatives of Securities Companies

    III 4. Securities Firms Inspection or Audit

    III 5. Disciplinary Action and Measures Against Misconducts

    III 6. Dispute Resolution System between Securities Firms and Customers

    III 7. Investor Education Activities

    IV. Market Structures

    IV 1. Breakdown of Financial Assets held by Household Account

    IV 2. Share of Foreign Investors in the Stock Trading on the Exchange

    IV 3. Share of Foreign Investors in the Bond Trading on Exchange/OTC Market

    IV 4. Settlement and Clearing Systems for Securities Transaction

    IV 5. Current Status of Off-Exchange Transaction (including PTS, ATS, MTF, etc.)

    IV 6. Share of On-line Trading

    V. Safety Net for Investors Protection

    VI. Challenges of Securities and Capital Market

    V 1. Major Recent Incidents and/or Challenges in Securities and Capital Markets as a Whole

    V 2. Specific Challenges in Equity Market

    V 3. Specific Challenges in Bond Market

    V 4. Specific Measures introduced / Implemented for the Securities Market

    V 5. Measures to Invite Foreign Investment (De-regulation, Promotion Activities, etc.)

    The content herein is based on the feedbacks from each delegate of participating organizations in the 12th ASF Tokyo Round Table. Japan

    Securities Dealers Association (JSDA) makes no representations as to, or guarantees, its accuracy or completeness.

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    I. Basic Organizational Features

    I 1. Organization Type, Statutory Basis

    No. Market Name of Organization Organization Type Statutory Basis

    1 China Securities Association of China SAC SRO & Industry

    Association

    Established by Law

    2 Hong Kong Hong Kong Securities Association HKSA Industry Association Established spontaneously in 1978, HKSA is the first

    securities industry association in Hong Kong.

    3 India 1 Association of National Exchanges

    Members of India

    ANMI Industry Association Established pursuant to the Companies Act 1956

    4 India 2 Bombay Stock Exchange Broker Forum BBF Industry Association Registered as Societies under Society Act 1860 and

    also registered under Charity Commissioner

    5 Indonesia Association of Indonesian Securities

    Companies

    APEI Industry Association Spontaneously established

    6 Japan Japan Securities Dealers Association JSDA SRO & Industry

    Association

    Established pursuant to Financial Instruments and

    Exchange Act

    7 Kazakhstan National Bank of Kazakhstan

    NBK Government

    Regulator

    Established in accordance with Law

    8 Korea Korea Financial Investment Association KOFIA SRO & Industry

    Association

    Established pursuant to Financial Investment

    Services and Capital Markets Act (FSCMA)

    9 Laos Lao Securities Commission Office LSCO Government

    Regulator

    Established by Securities Law

    10 Mongolia Mongolian Association of Securities

    Dealers

    MASD SRO & Industry

    Association

    Established by Securities Market Law of Mongolia

    11 Myanmar Securities and Exchange Commission of

    Myanmar

    SECM Government

    Regulator

    Securities Exchange Law, 2013

    12 Nepal Securities Board of Nepal SEBON Government

    Regulator

    Established by Securities Act, 2006

    13 Singapore Securities Association of Singapore SAS Industry Association

    Spontaneously established

    14 Sri Lanka Securities and Exchange Commission of

    Sri Lanka

    SECSL Government

    Regulator

    Established by The Securities and Exchange

    Commission of Sri Lanka ACT No.36 of 1987 as

    Amended by Act No. 26 of 1991, No. 18 of 2003

    and No. 47 of 2009

    15 Taiwan Taiwan Securities Association TSA SRO & Industry

    Association

    Established by or in accordance with Commercial

    Group Act; Securities and Exchange Act

    16 Thailand 1 Association of Thai Securities Companies ASCO Trade Association Established by Securities and Exchange Act of

    1992 section 230-237

    17 Thailand 2 Thai Bond Market Association ThaiBMA SRO & Industry

    Association

    Established by Securities and Exchange Act

    B.E.2535

    18 Turkey Turkish Capital Markets Association TCMA SRO It has been established in accordance with Article

    75 of the Capital Market Law no. 6362

    19 Vietnam1 Vietnam Association of Securities Business VASB Industry Association Decree No.45/2010/ND-CP dated April 21, 2010 of

    the Government on the establishment, operation

    and supervision of associations which is amended

    and supplemented by Decree No.33/2012/ND-CP

    dated April 13, 2012

    20 Vietnam2 Vietnam Bond Market Association VBMA Industry Association Established according to Decree No. 45/2010/ND-

    CP dated 21 April 2010 of the Government

    21 Asian Region Asia Securities Industry and Financial

    Markets Association

    ASIFMA Industry Association Spontaneously established

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    I 2. Number of Staff, Funding Source and Number of Member Firms

    No. Market Name of

    Organization

    No. of Full Time

    Staff

    Funding Source Number of Member Firms (by Business Category)

    1 China SAC 133 Membership Fee (As of the end of October 2015)

    Securities Companies (128)

    Securities Investment Consulting Institutions (83)

    Sunshine Private Funds (261)

    Direct Investment Subsidiaries of Securities Firms (59)

    Asset Management Firms (15)

    Credit Rating Institutions (7)

    Fund Companies (65)

    Trust Companies (30)

    Futures Companies (58)

    Financial Companies (32)

    Commercial Banks (12)

    Equity Investment Companies (131)

    Special Members (Regional Associations, Stock Exchanges, Law

    Firms, Accounting Firm, Overseas Securities Institutions with

    Representative Offices in China and so on) (149)

    2 Hong Kong HKSA 3 Membership Fee and

    other sources (courses

    & events organized by

    HKSA)

    Approximately 1,200 individual members who come from firms

    carrying Securities Brokerage, Asset Management, Futures Contracts,

    Corporate Finance and so on.

    3 India 1 ANMI Region: 14

    National Secretariat:

    3

    Membership Fee,

    Sponsorship & events,

    etc.

    As of 30.9.2016, there are 793 members spreading four regions,

    namely West, North, South and East. Each region has Regional

    Council. About 793 Members on all India basis, comprising of

    Market, Intermediaries Firms / Companies including foreign

    institutional broking firms / companies.

    4 India 2 BBF 7 1.Membership fees

    2.Advertisement

    income in the FORUM

    VIEWS magazine

    3.Training and Seminar

    income.

    As on 10th November 2016, the members in equity segment are 781

    and those of commodity segment are 113, totaling 894 members.

    Members are stock brokers of BSE, NSE, MCX

    5 Indonesia APEI 5

    Membership Fee,

    SRO Sponsorship,

    Training Course Fee

    128 (113 Stock Exchange Member; 10 Investment Manager; 5 Non

    Stock Exchange Member)

    6 Japan JSDA 358 Membership Fee,

    Fees for Examination

    and Training Course

    (As of October 1, 2016)

    260 Regular Members consisting of securities companies including 11

    overseas incorporated securities companies

    211 Special Members consisting of 182 banks, 14 insurance

    companies and 15 other financial institutions

    3 Specified Business Members

    7 Kazakhstan NBK 37 persons in the

    Department of the

    Securities Market

    Supervision

    Financed by own

    budget - the Budget of

    the National Bank of

    Kazakhstan

    As of the 1st September, 2015 there are 84 legal entities carrying out

    their professional activity as a stock market operators, as follows:

    - 46 broker/dealers;

    - 22 investment portfolio managers;

    - 10 custodians;

    - 2 transfer-agents;

    - 1 stock exchange;

    - 1 clearing organization;

    - 1 central depository

    - 1 single registry.

    34 banks, 32 insurance companies, single pension fund.

    8 Korea KOFIA 230 Membership Fee

    Examination fees for

    financial certifications

    and revenues from

    textbook sales

    (As of Oct. 31th)

    200 Regular members which include securities firms, asset

    management firms and futures firms, etc.

    108 Associate members which include investment advisory business

    entities, banks, insurance companies etc.

    23 Special members which include general administration companies,

    fund assessment companies, Korea Securities Depository, etc.

    9 Laos LSCO 54 Governments Budget LSCO is a national securities supervisory authority, having direct