I. Main contents of Article 58 of the Securities Law
Article 58 of the Securities Law clearly stipulates the code of conduct that securities companies and their employees should follow in the process of engaging in securities business. Specifically, this clause prohibits the following acts:
1. Accept the entrustment of customers and buy and sell securities for them;
2. Failing to provide the customer with the written confirmation document of the transaction within the specified time;
3. Misappropriation of securities entrusted by customers or funds in customer accounts;
4. Buying and selling securities for customers without authorization, or buying and selling securities under the guise of customers;
5. Harm the interests of customers or coerce customers to engage in securities trading against their will;
6. Other behaviors that violate the true meaning of customers and harm the interests of customers.
These regulations aim to protect the legitimate rights and interests of investors and prevent securities companies and their employees from taking advantage of their own advantages to conduct improper operations and harm the interests of customers.
Two. Responsibilities and obligations of securities companies and their employees
According to Article 58 of the Securities Law, securities companies and their employees shall faithfully perform their duties and safeguard the legitimate rights and interests of customers when engaging in securities business. Should abide by laws and regulations and industry norms, honest and trustworthy, diligent and conscientious.
In addition, securities companies should also establish and improve the internal control mechanism, strengthen the supervision and management of employees, ensure that employees abide by laws, regulations and industry norms, and prevent the occurrence of illegal acts.
Third, the punishment and supervision of illegal acts.
For securities companies and their employees who violate the provisions of Article 58 of the Securities Law, the regulatory authorities will punish them according to law. Penalties include warnings, fines, and revocation of professional qualifications. If the circumstances are serious, criminal responsibility will be investigated.
At the same time, the regulatory authorities will also strengthen the daily supervision of the securities market, timely discover and investigate violations of laws and regulations, and safeguard the fairness, justice and transparency of the market.
To sum up:
Article 58 of the Securities Law aims to protect the legitimate rights and interests of investors and maintain the fairness, justice and transparency of the securities market by clearly stipulating the code of conduct of securities companies and their employees. Securities companies and employees shall strictly abide by the provisions of this article, faithfully perform their duties and safeguard the legitimate rights and interests of customers. The regulatory authorities will also strengthen supervision of the securities market to ensure the healthy and stable development of the market.
Legal basis:
People's Republic of China (PRC) Securities Law
Article 58 provides that:
Securities companies and their employees engaged in securities business shall abide by the provisions of laws and administrative regulations, and shall not harm the legitimate rights and interests of customers, and shall not commit any of the following acts:
(1) To accept the entrustment of clients and buy and sell securities for them.
(2) Failing to provide the customer with a written confirmation document of the transaction within the specified time;
(3) misappropriating securities entrusted by clients or funds in clients' accounts.
(4) buying and selling securities for clients without authorization, or buying and selling securities under the guise of clients;
(5) harming the interests of customers or coercing customers to engage in securities trading against their will.
(six) other acts that violate the true meaning of customers and harm the interests of customers.