On September 10, 2021, the China Futures Association issued a notice on the issuance of the "Measures for the Management of Brokers of Futures Companies (Trial)", and the "Measures for the Management of Brokers of Futures Companies (Trial)" was officially released.
According to the notice, futures companies can only carry out intermediary cooperation with financial institutions such as securities companies approved by the relevant financial regulatory authorities. Most of the current legal person intermediaries do not meet the requirements of the new regulations. The transition period is stipulated until August 31, 2022. During the transition period, if the intermediary during the contract continuation period does not comply with the provisions of these measures, the futures company shall terminate the intermediary within the transition period and carry out relevant aftermath work.
The only way is to obtain the futures business qualification certificate and sign a natural person-only intermediary contract with the futures company to cooperate (commonly known as individual residence).
The bonus period for futures intermediaries is a thing of the past.
Due to the unfriendliness of the former legal residence to futures investors, the new regulations on intermediary management have also been officially implemented.
The management method also has threshold requirements for intermediaries: obtain a futures business qualification certificate, regularly complete the pre-job video learning and follow-up learning arranged by the association, and regularly complete the learning and training of futures companies. The most important thing is that the intermediary can only be a natural person, and the income of the intermediary will be charged a high percentage of tax points (the futures company will withhold 20% of the labor remuneration tax point), and the income of the intermediary will be greatly reduced.
Futures companies are also facing business transformation and policy adjustments. They no longer sign new intermediaries (de-intermediation). Some futures companies simply stop doing intermediary business and turn to asset management products and in response to exchange policies. Customer development
Here, I would like to remind individuals who want to engage in futures agency. To obtain the certificate of futures business qualification certificate, you need to take two courses, basic knowledge and laws and regulations. Non-compliant intermediaries are restricted, and screening compliant intermediaries is conducive to promoting the sound development of the futures industry.
After the promulgation of the new regulations on intermediary management measures, although there is no clear statement that the legal person intermediary will be cancelled, in fact, passing the qualification certification is considered not to sign the legal person intermediary cooperation for the futures company. It is the regulation of the China Mid-Term Association that individuals act as intermediaries. Individuals must pass the futures practice exam. The main reason for this provision is to clarify responsibilities. If it is a legal person intermediary, the employees of the intermediary company violate the regulations, and it is easy for the intermediary company to argue. In the personal room, the responsibilities are clear. from a regulatory perspective. Futures companies conduct access assessments and follow-up continuous supervision of individual intermediaries.