Report from our correspondent

Report from our correspondent (reporter Zhang Zhongan) although is weekend, the CSRC have not been idle. 16 SEC continuously released three new rules on its website, many aspects relating to fund sales, etc. Among them, in order to avoid problems such as frequent job-hopping, securities regulatory commission issued the "equity incentive constraint mechanism of securities companies management regulations (draft)" (hereinafter referred to as "draft") to solicit opinions from the public. Analysis, therefore, this also means that brokers equity incentive will be opened.

Separately, on March 14, 15, 16, 3 days, the CSRC issued 9 document assault, covers, QDII funds inherent applications is the asset management, securities company, and so on.

In the a-share market power equity incentives in the drama, brokers have no chance. But according to the CSRC's latest "exposure draft, the securities company through stock ownership incentive is expected to be opened step by step in the future. However, "draft" of the securities company issued by six prudential requirements, the implementation of equity incentive and incentive object should be a securities company directors, senior management or other employees.

Equity incentive for brokers "stay"

Reporters from the web site, in order to regulate the implementation of equity incentive behavior securities companies, promoting securities companies establish and improve the incentive and constraint mechanism, the CSRC drafted the "paper", 16 open for advice.

Securities regulatory commission (CSRC) said that at present, the domestic securities company salary management mechanism is not sound, prominent problem is the unreasonable salary structure, give priority to with cash income and short-term incentives, it has exposed many malpractices in the practice. Recently, for their own development and meet the needs of the market open challenge, some securities companies have also proposed the implementation of equity incentive of the preliminary ideas and plans, therefore, it is necessary to study a new rule. Equity incentive, refers to the company with the company's equity for the mark, to its directors, senior managers and other employees of the long-term incentive.

Reporters found the exposure draft, a total of 21, mainly implement equity incentive for securities companies shall conform to the requirements, motivate the object scope, incentives, incentive equity sources, the content of the incentive plan, internal control requirements, implementation procedure and disclosure issues, such as the rules.

In recent one year to have not been punished

In brokerages in the implementation of equity incentive, the CSRC also puts forward the six requirements: a specification is a governance structure, shareholders meeting, board of directors, managers responsibilities clear sound, organization, outside directors accounted for more than half of the members of the board of directors; Second is equipped with remuneration and nomination committee, the board members are outside directors, and sound system, operation standard; Third, compliance, risk management and internal control system and improve the effective; Four is the establishment of a reasonable and effective performance appraisal, compensation management and responsibility system; Five is the recent 1 year no administrative punishment or criminal penalties imposed by the CSRC; Six is the recent one fiscal year's financial and accounting reports have not been issued by negative opinions or unable to represent the opinions of audit report.

According to the different incentive object holding way, securities company equity incentive ways can be divided into two kinds: one is the direct ownership, 2 it is indirectly holdings, by setting up a trust plan, partnership or company securities firm granted restricted stock or stock options.