Securities industry reputation information management welcomes new regulations, adds a pre-compensation mechanism, and exempts certain cases from input.

Reporters have learned from industry sources that in order to further improve the management mechanism of professional reputation information in the securities industry, the China Securities Industry Association recently revised the "Management Measures for Professional Reputation Information in the Securities Industry" and is currently soliciting industry opinions. This is the first adjustment of the regulations after three years of operation. The revision aims to implement relevant regulatory spirits, include bribery that hinders regulatory law enforcement in the category of illegal dishonesty, and encourage securities firms to actively compensate investors for losses caused by fraudulent issuances. It clarifies that those who effectively reduce or eliminate damages through a pre-compensation mechanism may be exempt from having their related penalty information entered into the professional reputation information database.