On 8 April 2016, the China Securities Regulatory Commission opened the revised Administrative Measures for Risk Control Indicators of Securities Companies and its Rules (the Administrative Measures) for public comments. Public comments can be given until 8 May 2016.
The Administrative Measures are issued in July 2006, establishing net capital as core indicator. In recent years, the Administrative Measures played an important role in promoting the long-term healthy development of the securities industry. However, as the economy develops, the existing risk control system of indicators shows difficult to adapt to the needs of risk management. Therefore, changes and improvements are needed to adjust the specific rules inapplicable to industrial developments, and to enhance the completeness of risk control indicators.
The Administrative Measures specify four core indicators (risk coverage ratio, capital leverage ratio, liquidity coverage ratio and net stable funding ratio), and aim to build a more rational and effective risk control index system.
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