A branch company does not have the qualification of an enterprise legal person, and its legal liability shall be borne by the securities company. The securities business department is a legal person institution wholly owned by a securities company, and may not be established in the form of joint venture or cooperation, or operated by contract or lease. Its legal liability shall be borne by the securities business department itself.
2, the scope of responsibility is different.
A branch of a securities company may manage more than/kloc-0 securities business departments in a certain area of the securities company, but may not directly operate the business of the securities business departments. If a branch company is authorized to engage in securities proprietary business or securities asset management business, it shall not engage in other businesses.
The securities business department is an institution engaged in securities brokerage business. Mainly responsible for trading agent and the function of providing securities information.
3. The procedures for establishing institutions are different.
When a securities company establishes a branch, it shall apply to the China Securities Regulatory Commission, and submit the application materials to the securities regulatory bureau at the place where the securities company has its domicile and where the branch is to be established for the record. The China Securities Regulatory Commission accepts applications, examines them and makes decisions in accordance with the Administrative Licensing Law, the Securities Law, the Regulations on the Supervision and Administration of Securities Companies and other laws and administrative regulations and the relevant provisions of the China Securities Regulatory Commission.
The working capital for the establishment of the securities business department is not less than 5 million yuan, it has qualified business premises and trading facilities, and it has a long time and a large scale of stock business.
Baidu encyclopedia-stock exchange business department
Baidu Encyclopedia-Regulations on Supervision of Branches of Securities Companies