Crack down on illegal cross-border securities and futures fund management activities! The China Securities Regulatory Commission and seven other departments issued a joint document.

In recent days, the China Securities Regulatory Commission and eight other departments jointly issued the "Implementation Plan for Comprehensive Rectification of Illegal Cross-Border Securities and Futures Fund Management Activities," and officials from relevant departments answered questions from reporters about the "Rectification Plan." The overall requirement of the "Rectification Plan" is to conduct a two-year concentrated rectification to comprehensively ban illegal cross-border operations of overseas securities and futures fund management institutions (referred to as overseas institutions) and achieve the goal of "resolutely banning illegal activities and orderly clearing existing stock." The rectification targets include overseas institutions engaging in illegal cross-border securities and futures fund business, domestic related or cooperating entities assisting overseas institutions in illegal cross-border operations, illegal intermediaries soliciting domestic investors, internet platforms and self-media platforms illegally publishing information. The rectification will ban the illegal cross-border operations of overseas institutions and bring behaviors violating foreign exchange management, anti-money laundering, network security and information management, personal information protection, and other laws and regulations into the scope of rectification. Measures to ban illegal cross-border operations include prohibiting overseas institutions from conducting marketing and solicitation activities for securities and futures fund businesses in China, providing related account opening, order processing, fund transfer, and other transactions. Domestic entities are prohibited from assisting overseas institutions in illegal marketing and transaction services, as well as providing websites, trading software development and operation, customer service, etc. Measures to clear illegal stock include setting a two-year concentrated rectification period, during which overseas institutions are prohibited from providing buy-in transactions, fund transfers, and other services to existing investors in China, only allowing sell transactions and fund withdrawals. After the concentrated rectification period, overseas institutions will be required to completely shut down domestic websites, trading software, and related services, and are prohibited from providing transaction services to existing investors in China. The "Rectification Plan" specifies the main tasks: establishing a normalized collaborative regulatory mechanism, conducting comprehensive monitoring and investigation, reporting significant issues in a timely manner, and taking effective measures to clear and dispose of information related to illegal cross-border operations on internet platforms, advertisements, and information. Also, inviting illegal cross-border institutions for discussions and supervising them to strictly implement rectification requirements, conducting inspections and investigations of illegal cross-border operations, filing cases for entities suspected of crimes, and arranging for the orderly disposal of illegal operations of domestic entities. In addition, discussing with domestic banks that provide account services for illegal cross-border securities and futures fund investments for domestic investors, supervising domestic banks to strengthen the legality of foreign exchange fund transfers, cracking down on illicit cross-border funds outflow channels such as underground banks, and handling investor complaints. Conducting publicity, education, risk warnings, and policy guidance, and improving regulatory systems to guide domestic investors to engage in overseas investments through legal channels. Next, the China Securities Regulatory Commission will work together with relevant departments and local governments to steadily and orderly promote rectification work, strengthen cooperation with overseas financial regulatory authorities, crack down on illegal institutions, effectively curb the risks of illegal cross-border financial activities, and effectively protect the property rights of investors. The original text is as follows: Implementation Plan for Comprehensive Rectification of Illegal Cross-Border Securities and Futures Fund Management Activities To further prevent and combat illegal cross-border securities and futures fund management activities, maintain financial market order and protect the legitimate rights and interests of investors, in accordance with the "Securities Law of the People's Republic of China," "Futures and Derivatives Law of the People's Republic of China," "Securities Investment Fund Law of the People's Republic of China," "Cybersecurity Law of the People's Republic of China," "Personal Information Protection Law of the People's Republic of China," "Anti-Money Laundering Law of the People's Republic of China," "Regulation of Securities Companies," and "Regulation of Foreign Exchange Control" and other laws and regulations,...