China Securities Regulatory Commission tightens eligibility and procedures for securities and futures administrative enforcement undertakings

The China Securities Regulatory Commission issued amendments to its implementing provisions for the securities and futures administrative enforcement undertaking system, clarifying when applications will be accepted and strengthening procedural and integrity requirements. The changes take effect on 1 February 2026. Applications will be rejected where a party refuses or obstructs an investigation, lacks the ability to pay the commitment payment, is on the securities and futures market list of seriously untrustworthy entities without credit restoration, has used the undertaking mechanism for suspected securities or futures violations within the past year after completing a prior undertaking agreement, or where the CSRC deems the mechanism unsuitable under a prudent supervision principle. The amendments also define the standard for having conducted a “necessary investigation”, refine application materials and correction processes, and formalise internal consultation steps. Conduct such as using the process to maliciously delay investigations or hearings, leaking negotiation content to third parties, or seeking case-handling information is treated as a breach of good faith under the State Council framework and may be handled accordingly; in negotiating the commitment payment, the CSRC will in principle set it at no less than the potential fines and confiscation amounts applicable to the suspected misconduct. The CSRC indicated it will organise implementation of the revised undertaking system to support investor protection, market order, and enforcement efficiency.