1.    Amended CPA Act: Local CPAA Membership Allows for Nationwide Practice
On 20 April 2016, the President promulgated the amended Certified Public Accountant Act, which now allows Certified Public Accountants (CPAs) registered with one local CPA association to practice nationwide without having to register with the local CPA Associations of other places where they practice. The amendment will spare CPAs the cost of joining CPA Associations in multiple locales, and also help to enhance the quality of services that CPA Associations provide to their members.
2.    Regulations Governing Futures Trust Funds Amended to Facilitate Futures Trust Enterprises Offering Leveraged and Inverse Futures Exchange-Traded Funds (ETFs)
In response to practical needs in the industry, the FSC issued on 16 May 2016 amended provisions of the Regulations Governing Futures Trust Funds. The amendments allow futures trust enterprises to issue leveraged and inverse futures ETFs, offering investors more diverse investment tools. Following are key points of the amendments:
(1)    The amended Regulations require that the name of a leveraged or inverse futures ETF must clearly indicate the multiple of the daily performance or inverse performance of the underlying index that is being tracked. The amendments also ease the ratio cap on investment by futures ETFs in other futures trust funds and securities investment trust funds.
(2)    The requirements for follow-on offering of futures trust funds by futures trust enterprises are relaxed.
(3)    A futures trust fund is now allowed to invest in another futures trust fund issued by the same futures trust enterprise.
(4)    Management fees shall not be charged for investments in other futures trust fund issued by the same futures trust enterprise, in order to avoid double charge of management fee.
3.    Centralized Securities Depository Enterprise Allowed to Handle Payment Services for Domestic Funds
On 26 April 2016, the FSC issued Orders No. Financial-Supervisory-SITC- 10500014171 and No. Financial-Supervisory-SITC-1050001417, permitting securities brokers to subscribe in their own name to domestic funds on behalf of investors. The collections and payments for these operations may be handled through accounts designated for this purpose by the centralized securities depository enterprise. Meanwhile, the centralized securities depository enterprise is permitted to operate the collection and payment services for domestic funds transactions, to unify and streamline the business processes of offshore and domestic funds, and to ease the transactions for fund distributors and investors.
4.    Conditions Relaxed for Applications to Operate Consulting Relating to Foreign Securities; Oversight Strengthened Over Securities Brokers Who Operate Equity Crowdfunding Business and Apply to Concurrently Operate Securities Investment Consulting Business
On 19 May 2016, the FSC issued amendments to the Standards Governing the Establishment of Securities Investment Consulting Enterprises and the Regulations Governing Securities Investment Consulting Enterprises. Among the main points of the amendments: If the securities broker operates only equity crowdfunding applies to concurrent operation of securities investment consulting business, the scope of such concurrent consulting business will be confined to the stocks of companies that conduct equity crowdfunding on the broker''s crowdfunding platform. The amendments also add that a securities investment consulting enterprise that is of a certain scale, and that possesses equipment for real-time access to foreign securities investment research information, and sufficient and competent personnel, is qualified to apply for operating foreign securities investment consulting business.
5.    Securities Firms Now Allowed to Mandate Managed Futures Enterprises to Conduct Discretionary Trading of Derivatives for Non-Hedging Purposes
On 12 May 2016, the FSC introduced a deregulation measure that allows securities firms engaging in trading of domestic and overseas derivative financial products for non-hedging purposes to mandate discretionary investment of such instruments to a managed futures enterprise that has the FSC''s approval to handle discretionary futures trading business. This move is aimed at enhancing the capital utilization efficiency and investment returns of securities firms, and giving managed futures enterprises reasonable opportunities for development. The FSC has also set out norms for compliance by securities firms in such trading, including the following key requirements:
(1)    Establish operating guidelines for such discretionary trading authorizations and expressly include them in the internal control system.
(2)    Periodically assess the outcomes and risks assumed in the discretionary authorizations, and report to the Board of Directors at least quarterly.
(3)    If a securities firm mandates a managed futures enterprise within the firm''s own business group to conduct the discretionary trading, the mandate shall be based on the principles of fairness, reasonableness, and good faith, and non-arm''s length transactions are prohibited.