China's National Financial Regulatory Administration issued revised Measures for the Administration of Money Brokerage Companies, updating the 2005 pilot framework to strengthen supervision, clarify firms’ functional positioning and improve risk controls as the sector expands beyond China’s current six licensed money brokers. The measures raise the entry bar by increasing the minimum registered capital requirement and refining shareholder qualification conditions, while focusing firms on their core broking role. Permitted matching services are broadened to cover inter-financial institution trading in the money market, bonds, foreign exchange, gold and derivatives, although derivatives broking is expressly limited to exclude equity and commodity derivatives. Brokers may also provide data services using market pricing data generated through broking, subject to legal and compliance requirements. New business lines that are subject to market-specific access rules must obtain relevant licensing or filing with the appropriate State Council financial regulator, and broking services are limited to financial institutions that already have the requisite trading access to interbank, exchange and other markets. The measures also add a dedicated chapter on broker management and prohibited conduct, strengthen end-to-end process requirements (including due diligence, anonymous matching, trade confirmation, recordkeeping and fee management), update expectations on governance, internal control, operational and compliance risk, information technology risk, data security and outsourcing, and set out enhanced supervisory coordination with the People’s Bank of China, the China Securities Regulatory Commission and the State Administration of Foreign Exchange.
China Banking and Insurance Regulatory Commission 2025-06-20
China's National Financial Regulatory Administration revises management rules for money brokerage companies, tightening entry and conduct requirements and widening permitted broking activities
China's National Financial Regulatory Administration has revised the Measures for the Administration of Money Brokerage Companies, enhancing supervision and risk controls as the sector grows beyond six licensed brokers. Key updates include increased capital requirements, refined shareholder qualifications, and expanded permitted services, excluding equity and commodity derivatives. The measures introduce stricter governance, compliance, and operational standards, with enhanced coordination with the People’s Bank of China and other regulatory bodies.