Securities Times reporter Cheng Dan
On April 26, China Securities Regulatory Commission (CSRC) solicited public opinions on the Regulations on the Supervision of Resigned Personnel Joining Proposed Listed Enterprises in the CSRC System (for Trial Implementation) (hereinafter referred to as the Regulations on the Supervision of Resigned Personnel), further strengthened the management of resigned personnel joining proposed listed enterprises in the CSRC system, and maintained the openness, fairness and justice of the capital market.
Specifically, there are three new provisions in the Regulations on the Supervision of Resigned Personnel. The first is to lengthen the prohibition period for employees leaving the issuance supervision post and the management cadre. If the former employee held the issuance supervision post within three years before leaving, or if the former employee belonged to the management cadre before leaving, the prohibition period is ten years after leaving. The second is to expand the scope of supervision of resigned personnel. The scope of strict review will be expanded from the demission personnel themselves to the demission personnel and their parents, spouses, children and spouses. Third, refine the inspection requirements of intermediaries. According to the audit practice and review concerns, the intermediary agency should conduct a comprehensive inspection on matters related to the resigning personnel's participation in the proposed listed enterprise, and ensure that the procedures are complete, the basis is sufficient, and the conclusions are clear.
The current relevant provisions are the Guidelines for the Application of Regulatory Rules - Issuance Category No. 2 (hereinafter referred to as the "Guidelines") issued by the CSRC in May 2021, which clearly stipulates the situation of improper share participation of resigned personnel and the responsibility of intermediary agencies to check, determines that the CSRC will carry out special verification on the share participation, and arranges the internal audit department to carry out independent review, Form a crisscross system of auditing the stock participation behavior of resigned personnel. Since the issuance and implementation of the No. 2 Guidance, the CSRC has strictly promoted the review and review procedures for the resigned persons' shares in the proposed listed enterprises in accordance with the law, significantly reduced the "job identity value" of the resigned persons, effectively supervised the resigned persons' shares in the proposed listed enterprises, and the average review period of such enterprises has been significantly extended. It is generally felt in the market that the participation of resigned employees in the CSRC system will not bring any convenience to enterprises, but will affect the listing process of enterprises.
The CSRC said that the issuance of the Regulations on the Supervision of Resigned Personnel is intended to strictly regulate the "revolving door" of politics and business, and strictly prevent the resigned personnel from obtaining improper and illegal benefits by taking advantage of the public power in service and the influence after resignation. In the next step, we will continue to strictly control the entrance, strengthen cooperation with the discipline inspection and supervision departments, resolutely transfer the clues of violations of laws and disciplines to the relevant departments for handling, and maintain a fair, just and open order of issuance supervision.
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