China Banking and Insurance Regulatory Commission revises money brokerage company rules to raise capital requirements, broaden inter-institution brokerage and tighten risk and conduct controls

The China Banking and Insurance Regulatory Commission issued revised rules for money brokerage companies, updating licensing and operating requirements, expanding the scope of permitted brokerage activities across key financial markets, and strengthening governance, risk management and conduct supervision. The revised framework moderately increases registered capital requirements and adjusts shareholder eligibility criteria while streamlining certain licensing procedures. Money brokerage companies are now permitted to provide matching services for trades between financial institutions in money, bond, foreign exchange, gold and derivatives markets, and may use market quotation data collected through brokerage activities to provide data and information services to clients on a lawful and compliant basis. Operational rules are tightened through clearer product and client access requirements, end-to-end process controls covering due diligence, trade confirmation, anonymous matching and recordkeeping, and fee governance intended to ensure charges align with service value. The measures also enhance requirements on corporate governance, internal controls, related-party transactions, remuneration and disclosure, and specify expectations for operational, compliance, information technology, data security and outsourcing risk management, alongside stricter broker management and prohibited practices to mitigate moral hazard and protect clients and market order.