Securities Association of China: Emphasize Long-Term Stability, New Growth Cycle Assessment Requirements

The Securities Association of China has revised and issued the "Guidelines for Brokerage Firms to Establish a Sound Compensation System." The overall approach of this revision is as follows: first, adhere to goal orientation. Implement the requirement proposed in the new "Nine Articles" to "improve the compensation management system for the securities and fund industry that aligns with operating performance, business nature, contribution level, compliance risk control, and social culture," further optimize principle objectives, and guide brokerage firms to establish compensation management mechanisms that balance incentives and constraints, efficiency and fairness, and long-term and short-term aspects.