The China Securities Regulatory Commission is proposing additional rules to oversee financial institutions advising listed companies on mergers and acquisitions.
If any controlling shareholder of a securities house was found to have committed malfeasance in the past three years, the firm would be banned from acting as a financial adviser, the securities regulator proposed in a consultation paper issued yesterday.
It added that securities houses also should have proper internal controls.
An investment bank seeking such business must be licensed with paid-up capital of at least five million yuan. It must have at least two years of experience in mergers and acquisitions and at least 20 licensed experts.
Other financial advisory firms should have at least three years of experience in the area, with income from such business amounting to not less than one million yuan each year in the most recent three years.
