China to Regulate Foreign Institutions Providing Financial Information Services
On April 30, 2009, the State Council Information
Office (the "SCIO"), the Ministry of Commerce ("MOFCOM") and the State
Administration for Industry and Commerce jointly released the Administrative
Provisions for Foreign Institutions Providing Financial Information Services in
China (the "Provisions"), effective June 1, 2009. The Provisions are applicable to all foreign
institutions and foreign-invested enterprises providing financial information
services in China. According to the
Provisions, qualified foreign institutions, including those in Hong Kong, Macao
and Taiwan, planning to provide financial information services in China must be
approved by the SCIO, and such approval is valid for two years. Approved foreign institutions must file any
execution, change or termination-of-service contracts with domestic customers
within thirty days of such execution, change or termination. The Provisions further stipulate that the
establishment of a foreign-invested financial information services enterprise
is subject to the approval of MOFCOM and that such enterprises may not engage
in the news business or any business operated by news agencies.
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