China Securities Regulatory Commission (CSRC) will put the country's securities brokers under new regulations, in a bid to professionalize the securities market and protect investors' interests, according to Tuesday's China Daily.
The regulations, starting April 13, order all brokers to acquire standard professional qualifications and work for sole securities firms.
Securities brokers are defined as persons assigned by securities firms to attract clients and provide custom services
"These securities brokers are not the formal staff of securities companies. Competition among them may harm the rights of investors and affect the development of the securities market," the newspaper quoted a CSRC official as saying.
The new regulations also require securities firms to sign formal contracts that would clarify the rights and duties of these brokers, in a bid to help protect the brokers' interests.
The CSRC began to solicit public opinions on the regulations in September of last year.
"As of the end of October of 2008, there were about 80,000 securities brokers in the industry, and about 30,000 brokers had passed qualifying exams. After completing the training courses and registering with the Securities Association of China, the brokers can conduct business," the official said.