On April 24th, 2012, the CSRC Party Disciplinary Committee held a conference with the newly appointed Party Disciplinary Committee Secretaries of its subsidiaries organs. Mr. Li Xiaohong, member of CSRC Party Committee, delivered a speech titled as “Performing Your Duties Diligently and Exercising Your Authorities with Due Consideration”. In this speech, he laid out his vision for the basic qualities which a Party Disciplinary Committee Secretary must possess, reviewing the performance of tasks identified by National Securities and Futures Regulatory System Discipline Inspection Work Conference earlier this year, and raised specific expectations to the next stage of work.
Mr. Li Xiaohong emphasized that Party Disciplinary Committee Secretaries shall perform their duties on all fronts, while bringing great sophistication to the focuses below.
First, the root cause of corruption must be properly addressed, by pushing forward reform of the system of administrative review and approval, reducing the number of matters subject to administrative approval, and streamlining and strictly following the approval procedure. That means, in the process of further market-oriented reform, CSRC shall gradually decrease its intervention in order to give market players a more significant role to play in the market functioning. With respect to case investigation, review and on-site inspection, Party Disciplinary Committee Secretaries are invited to improve the applicable rules, to comply with the relevant procedures when exercising their authorities and to reduce room for discretion. In connection with the matters subject to administrative permission, research and development shall be conducted on possible electronic review and approval system and monitoring system.
Second, priorities must be set in the functioning of the sanction and prevention system. An Overview of Authorities shall be drafted after a study of all the powers exercised in respect of the regulated entities in accordance with the statutory authorizations, and a Flowchart of Power Functioning shall be prepared to identify corruption vulnerabilities. Ad-hoc inspections and routine monitoring and inspections must be carried out to identify weaknesses in the enforcement of accountability in the anti-corruption program. Countermeasures must be put forward with a view to enforcing such accountability.
Third, market integrity shall be put high in the agenda. Initiatives in raising the awareness of and formulating rules on market integrity must be dealt with as a priority because they lay the groundwork for CSRC’s fight against business corruptions, facilitating market-oriented reform and improving the integrity of regulatory environment. The development of the data bank of integrity records must be accelerated. Legal authorities shall be specified, based upon which regulatory bodies shall keep and maintain integrity records, define and collect integrity information, use such information in their supervisory activities, as well as enforce integrity-related rules. Education on market integrity shall be reinforced, in order to promote the culture of market integrity where market players with good standing will be commended and those with compromised integrity shall be threatened with censure and sanction.
Mr. Li Xiaohong mentioned that Secretaries of Party Disciplinary Committee must properly fulfill their roles and seek change in their positions. Disciplinary oversight must be aligned with the Central Government’s requirements on clean governance, with latest developments of the capital market, with the Party’s practices of ideological, organizational, cultural and institutional development, as well as with investors’ expectations. Disciplinary Committee must properly fulfill its role of supervision, taking into consideration trends in the development of capital markets, identifying priority work areas, following clear orientations and doing practical work, according to established procedures without overstepping the line.
Mr. Li Xiaohong indicated that Secretaries of Party Disciplinary Committee must perform their functions with prudence and act as a role model in terms of clean governance. They are required to adhere to the following principles: achieving performance in pursuance of the rule of “scientific development”; working in a pragmatic manner and down to earth; building an image of integrity; maintaining their commitment to good causes and to CPC’s undertakings; pursue higher standards of conduct; exercising their authorities and fulfilling their duties in compliance with good values and with a service-oriented mind-set, refraining from seeking personal interests.
The working conference was attended by Mr. Wu Lijun, member of CSRC Party Committee and Assistant Chairman, all members of CSRC Disciplinary Committee, 12 newly appointed Secretaries of Party Disciplinary Committee, and Beijing-based Secretaries of Disciplinary Committee.