Article 2 The term "internal control of securities companies" as mentioned in these Guidelines refers to the institutional arrangement, organizational system and control measures for securities companies to identify, evaluate and manage risks in the process of operation and management in order to achieve business objectives according to changes in the business environment.
Article 3 Internal control shall fully consider the control environment, risk identification and evaluation, control activities and measures, information communication and feedback, supervision and evaluation, etc.
(1) Control environment: it mainly includes the stock ownership structure and actual controller, corporate governance structure, organizational structure and decision-making procedures, the power distribution and responsibility-taking mode of managers, the management concept and risk awareness of managers, the business strategy and style of securities companies, the integrity and moral values of employees, and human resources policies.
(2) Risk identification and assessment: identify and confirm the risks of securities companies in the process of achieving business objectives in a timely manner, and timely assess the risks arising from the continuous change of business environment and the affordability of securities companies through reasonable institutional arrangements and risk measurement methods.
(3) Control activities and measures: policies and procedures to ensure the realization of strategic objectives and business objectives of securities companies, and measures to prevent and resolve risks. It mainly includes measures such as authorization and approval, examination and verification, business rules and operational procedures, division of post authority and responsibility, mutual independence and checks and balances, emergency and prevention in the operation and management of securities companies.
(4) Information communication and feedback: record, summarize, analyze and process all kinds of information in time, and conduct effective internal and external communication and feedback.
(V) Supervision and evaluation: check and evaluate the effectiveness of the control environment, risk identification and evaluation, control activities and measures, information communication and feedback, find the defects in the design and operation of internal control and make timely improvements.
Article 4 Effective internal control shall provide reasonable guarantee for securities companies to achieve the following objectives:
(1) Ensuring the legal and compliant operation of securities companies and the implementation of internal rules and regulations.
(two) to prevent business risks and moral hazards.
(three) to ensure the safety and integrity of the assets of customers and securities companies.
(four) to ensure the reliability, integrity and timeliness of business records, financial information and other information of securities companies.
(5) Improving the operating efficiency and benefits of securities companies.
Article 5 A securities company shall, in accordance with the requirements of these Guidelines, establish an effective internal control mechanism and internal control system according to the business objectives and operating conditions of the securities company and in combination with its own environmental conditions.
Article 6 A securities company shall regularly evaluate the effectiveness of internal control and make timely adjustments and improvements according to changes in the market, technology and legal environment.