Regulations on the Integrity of Securities and Futures Business Institutions and Their Staff

Article 1: In order to promote the healthy development of the capital market, purify the ecological environment of the capital market, protect the legitimate rights and interests of investors, and effectively strengthen the supervision and management of the integrity of securities and futures operating institutions and their staff, in accordance with the Securities Law These regulations are formulated in accordance with laws and regulations such as the Securities Investment Fund Law, the Regulations on the Supervision and Administration of Securities Companies, and the Regulations on the Administration of Futures Trading. Article 2 The term "integrity in business" as mentioned in these regulations means that securities and futures operating institutions and their staff strictly abide by laws and regulations, regulations of the China Securities Regulatory Commission and industry self-discipline rules, and abide by social ethics and business ethics when conducting securities and futures business and related activities. Morality, professional ethics and code of conduct, fair competition, compliant operation, loyalty and diligence, honesty and trustworthiness, and not directly or indirectly conveying illicit benefits to others or seeking illicit benefits. Article 3 The China Securities Regulatory Commission shall strengthen the supervision and management of securities and futures operating institutions and their staff’s integrity.

Self-regulatory organizations such as the Securities Association of China, China Futures Association, and China Securities Investment Fund Association conduct self-regulatory management of securities and futures operating institutions and their staff in accordance with their charters and relevant self-regulatory rules. Article 4 Securities and futures operating institutions shall bear the main responsibility for the prevention and control of integrity risks.

The board of directors of securities and futures operating institutions determines the goals of clean business management and assumes responsibility for the effectiveness of clean business management.

The principal person in charge of securities and futures operating institutions is the first person responsible for implementing the responsibilities of honest business management, and the persons in charge at all levels shall bear corresponding management responsibilities within the scope of their duties. Article 5 Securities and futures operating institutions shall designate specialized departments to supervise and inspect the integrity of the institution and its staff, give full play to the joint efforts of discipline inspection and supervision, compliance, auditing and other departments, handle problems in a timely manner when problems are discovered, and report major situations in a timely manner. Article 6 Securities and futures operating institutions shall establish and improve an internal control system for honest business operations, formulate specific and effective ex-ante risk prevention systems, in-process management and control measures, and ex-post accountability mechanisms, and scientifically and comprehensively analyze the types, links, and related work of the businesses they engage in. Systematic integrity risk assessment, identifying risk points for integrity practices, strengthening job checks and balances and internal supervision mechanisms, and ensuring effective operations.

The business types and links specified in the preceding paragraph include business undertaking, underwriting, sales, trading, settlement, delivery, investment, procurement, business cooperation, personnel recruitment, as well as applying for administrative licenses, accepting supervision and law enforcement, and self-discipline Management etc. Article 7 Securities and futures operating institutions shall formulate standards for the integrity of employees, clarify the requirements for integrity, strengthen integrity training and education for employees, and cultivate a culture of integrity.

Securities and futures operating institutions shall incorporate the integrity of their staff into the staff management system, and when encountering personnel recruitment, promotion, promotion, resignation, assessment, audit, audit, etc., the integrity of their staff shall be evaluated. Inspection and evaluation. Article 8 Securities and futures operating institutions shall strengthen financial discipline and eliminate irregularities such as off-book accounting. Develop clear internal decision-making processes and specific standards for expenses incurred in business activities to ensure that relevant expenses are legal and compliant. Article 9 Securities and futures operating institutions and their staff shall not convey illegitimate benefits to public officials, customers, potential customers under negotiation or other interested parties in the following ways when conducting securities and futures business and related activities:

(1) Providing gifts, gifts, real estate, cars, securities, equity, commission returns and other property, or providing conveniences such as holding on behalf of the above behaviors;

(2) Providing travel and banquets , entertainment and fitness, work arrangements and other interests;

(3) Arranging transactions such as structured, high-yield, capital-guaranteed financial products that significantly deviate from fair prices;

(4) Directly or indirectly Providing inside information, undisclosed information, trade secrets and customer information to others, expressly or implying that others are engaged in relevant trading activities;

(5) Other situations of conveying illegitimate benefits.

If securities and futures operating institutions and their staff conduct reasonable marketing in accordance with the internal regulations and limited standards formulated by securities and futures operating institutions in accordance with the law, the provisions of the preceding paragraph shall not apply.

Article 10 Staff members of securities and futures operating institutions shall not seek improper benefits in the following ways:

(1) Directly or indirectly accept or solicit property or interests from others in the forms listed in Article 9;

(2) Directly or indirectly using inside information, undisclosed information, trade secrets and customer information provided by others or actively obtained to seek benefits;

(3) Inducing customers to engage in unnecessary transactions, Using clients’ entrusted assets to conduct unnecessary transactions to seek benefits;

(4) Engaging in for-profit business activities in violation of regulations, holding concurrent positions that may affect their independence in violation of regulations, or engaging in activities related to the legitimate interests of the institution or investors where they work; Conflicting activities;

(5) Violating the rules and using authority to provide convenience for close relatives or other interested parties to engage in for-profit business activities;

(6) Others seeking improper benefits situation. Article 11 Securities and futures operating institutions and their staff shall not interfere with, instigate, or assist others to interfere with securities and futures supervision and management or self-discipline management in the following ways:

(1) Influence supervision and management or self-discipline management in improper ways Self-regulatory management decisions;

(2) Improperly affecting the work arrangements of supervisory management or self-regulatory management personnel;

(3) Obtaining internal information of supervisory management or self-regulatory management through improper means ;

(4) Assisting interested parties, refusing, interfering, obstructing or failing to cooperate with regulatory personnel in exercising their powers of supervision, inspection and investigation;

(5) Other interference with securities and futures supervision and administration Or in the case of self-regulatory work.