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Comparative Analysis of Asian Securities Regulaors

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Comparative Analysis of Asian Securities Regulaors (Compiled as of December 17, 2015) 6th COMPARATIVE ANALYSIS OF ASIAN SECURITIES REGULAORS & SROs AND MARKET CHARACTERISTICS (Data and information provided by participating organizations in the 11th ASF Tokyo Round Table) CONTENTS I. Basic Organizational Features I – 1. Organization Type, Statutory Basis I – 2. Number of Staff, Funding Source and Number of Member Firms II. Regulatory Framework of the Securities Markets of Each Country III. Regulation & Self Regulation III – 1. Major Rule Making Functions of each Organization III – 2. Qualification System for Market Professionals III – 3. Training System for Employees/Sales Representatives of Securities Companies III – 4. Securities Firms Inspection or Audit III – 5. Disciplinary Action and Measures Against Misconducts III – 6. Dispute Resolution System between Securities Firms and Customers III – 7. Investor Education Activities IV. Market Structures IV – 1. Breakdown of Financial Assets held by Household Account IV – 2. Share of Foreign Investors in the Stock Trading on the Exchange IV – 3. Share of Foreign Investors in the Bond Trading on Exchange/OTC Market IV – 4. Settlement and Clearing Systems for Securities Transaction IV – 5. Current Status of Off-Exchange Transaction (including PTS, ATS, MTF, etc.) IV – 6. Share of On-line Trading V. Safety Net for Investors Protection VI. Challenges of Securities and Capital Market V – 1. Major Recent Incidents and/or Challenges in Securities and Capital Markets as a whole V – 2. Specific Challenges in Equity Market V – 3. Specific Challenges in Bond Market V – 4. Specific Measures introduced / Implemented for the Securities Market V – 5. Measures to Invite Foreign Investment (De-regulation, Promotion Activities, etc.) The content herein is based on the feedbacks from each delegate of participating organizations in the 11th ASF Tokyo Round Table. Japan Securities Dealers Association (JSDA) makes no representations as to, or guarantees, its accuracy or completeness. 1 I. Basic Organizational Features I – 1. Organization Type, Statutory Basis No. Country Name of Organization Organization Type Statutory Basis 1 Cambodia Securities and Exchange Commission of SECC Government Established by Law on Issuance and Trading of Cambodia Regulator Non-Government Securities, 2007 2 Hong Kong Hong Kong Securities Association HKSA Industry Association Established spontaneously in 1978, HKSA is the first securities industry association in Hong Kong. 3 India Association of National Exchanges ANMI NPO registered under Established pursuant to the Companies Act 1956 Members of India Indian Companies Act 4 Indonesia Association of Indonesian Securities APEI Industry Association Spontaneously established Companies 5 Japan Japan Securities Dealers Association JSDA SRO & Industry Established pursuant to Financial Instruments and Association Exchange Act 6 Kazakhstan National Bank of Kazakhstan NBK Government Established in accordance with Law Regulator 7 Korea Korea Financial Investment Association KOFIA SRO & Industry Established pursuant to Financial Investment Association Services and Capital Markets Act (FSCMA) 8 Laos Lao Securities Commission Office LSCO Government Established by Securities Law Regulator 9 Malaysia Association of Stockbroking Companies ASCM Industry Association Established by The Societies Act in Malaysia Malaysia 10 Mongolia Mongolian Association of Securities MASD SRO&Industry Established by Securities Market Law of Mongolia Dealers Association 11 Myanmar Securities and Exchange Commission of SECM Government Securities Exchange Law, 2013 Myanmar Regulator 12 Nepal Securities Board of Nepal SEBON Government Established by Securities Act, 2006 Regulator 13 Pakistan Securities and Exchange Commission of SECP Government Established under the Securities and Exchange Pakistan Regulator Commission of Pakistan Act, 1997 14 Philippines Philippine Stock Exchange PSE Exchange SRO Pursuant to the Securities Regulation Code 15 Singapore Securities Association of Singapore SAS Industry Association Spontaneously established 16 Sri Lanka Securities and Exchange Commission of SEC Government Established by The Securities and Exchange Sri Lanka Regulator Commission of Sri Lanka ACT No.36 of 1987 as Amended by Act No. 26 of 1991, No. 18 of 2003 and No. 47 of 2009 17 Taiwan Taiwan Securities Association TSA SRO & Industry Established by or in accordance with Commercial Association Group Act; Securities and Exchange Act 18 Thailand Association of Thai Securities Companies ASCO Industry Association Established by Securities and Exchange Act of 1992 section 230-237 19 Turkey Turkish Capital Market Association TCMA SRO & Industry It has been established according to the in Association accordance with Article 75 of the Capital Market Law no. 6362 20 Vietnam1 Vietnam Association of Securities Business VASB Industry Association Decree No.45/2010/ND-CP dated April 21, 2010 of the Government on the establishment, operation and supervision of associations 21 Vietnam2 Vietnam Bond Market Association VBMA Industry Association Established according to Decree No. 45/2010/ND-CP dated 21 April 2010 of the Government on the establishment, operation and supervision of associations 22 Asian Region Asia Securities Industry and Financial ASIFMA Industry Association n/a Markets Association 2 I –2. Number of Staff, Funding Source and Number of Member Firms No. Country Name of No. of Full Time Funding Source Number of Member Firms (by Business Category) Organization Staff 1 Cambodia SECC 110 Government Budget In Cambodia, there are four type of business member firms: - 7 Security underwriters - 4 Security brokers - 1 Security Dealers - 2 Investment Advisors 2 Hong Kong HKSA 3 Membership Fee and Approximately 1200 individual members who come from firms other sources (courses carrying Securities Brokerage, Asset Management, Futures Contracts, & events organized by Corporate Finance and so on. HKSA) 3 India ANMI 7 persons attached to Membership Fee, About 800 Members on all India basis, comprising of Market the Registered Office Sponsorship & events, Intermediaries Firms / Companies including foreign of the Company. etc. institutional broking firms / companies. Regional offices of ANMI are staffed independently. (Due to lack of feedback, previous statement is retained) 4 Indonesia APEI 7 Membership Fee, Our members are only Securities Companies, which consist of : 114 SRO Sponsorship, companies of Stock Exchange Member and 12 companies of Non Training Course Fee Stock ExchangeMember, with the following breakdown: Securities Houses 30 Underwriter Houses 12 Securities and Underwriting Houses 53 Securities and Fund Management Houses 2 Underwriter and Fund Management Houses 2 Securities,Underwriting and Fund Management Houses 15 Sub-total 114 Brokerage agency, Asset Management 12 5 Japan JSDA 357 Membership Fee, (As of October 1, 2015) Fees for Examination 250 Regular Members consisting of securities companies including 14 and Training Course foreign securities companies 213 Special Members consisting of 187 banks, 14 insurance companies and 12 other financial institutions 2 Specified Business Members 6 Kazakhstan NBK 37 persons in the Financed by own As of the 1st September, 2015 there are 86 legal entities carrying out Department of the budget - the Budget of their professional activity as a stock market operators, as follows: Securities Market the National Bank of - 47 broker/dealers; Supervision Kazakhstan - 23 investment portfolio managers; - 10 custodians; - 2 transfer-agents; - 1 stock exchange; - 1 clearing organization; - 1 central depository - 1 single registry. 7 Korea KOFIA 220 Membership Fee (As of Oct. 31th) Examination fees for 161 Regular members which include securities firms, asset financial certifications management firms and futures firms etc. and revenues from 117 Associate members which include investment advisory business textbook sales entities, banks, insurance companies etc. 23 Special members which include general administration companies, fund assessment companies, Korea Securities Depository etc. 8 Laos LSCO 54 Government‘s Budget (as of October 30, 2015) LSCO is a national securities supervisory authority, having direct responsibility to supervise, monitor and inspect securities activities to ensure an efficient, fair and transparent capital market in Lao PDR. At the present, there are four securities firms, a Lao Securities Exchange (LSX), four issuing companies and three audit firms, a custodian bank (approved by LSCO) under LSCO supervision. Lao Securities Exchange (LSX) 1 securities firms 4 3 No. Country Name of No. of Full Time Funding Source Number of Member Firms (by Business Category) Organization Staff issuing companies 4 audit firms 5 custodian bank 1 securities association Waiting for approve by MOA Credit Rating Agencies Waiting for approve by LSCO Asset Valuation Company Waiting for approve by LSCO 9 Malaysia ASCM 3 Membership Fee, (As at 26 October 2015) income from organizing 16 Securities Firms including 3 with foreign ownership. training and Income 10 Investment Banks. from fixed deposit 10 Mongolia MASD 3 Membership Fee, Total 46 Securities firm members including 46 underwriting Licensed Courses, companies, 12 financial advisory service companies, 2 bank Corporate governance subsidiaries. courses and other ( as of Nov.10, 2015) courses 11 Myanmar SECM 22 Government‘s Budget Under consideration 12 Nepal SEBON 29 Mmbership fee, and Specific Securities S.N. Business Category Number registration fees 1 Stock Exchange 1 2 Stock Broker
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