CSRC measures for financial consultants are unclear
China Securities Regulatory Commission has issued measures aimed at regulating the financial consultants who provide advice to listed companies in China. Although it is seen as a step in the right direction, by bringing China more into line with the world’s mature capital market environments, for many the measures do not provide a level playing field for M&A activity in China.
Date:
September 2008
Keywords (click to search): [financial consultancy] [financial consultant] [financial advisor] [M&A] [merger] [acquisition] [reorganisation ]
By Chris Bisogni
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The title of the measures may cause some confusion. The China Securities Regulatory Commission (CSRC), Measures for the Administration of Financial Consultancy Services for Mergers, Acquisitions and Reorganisations of Listed Companies are actually more to do with the administration of financial consultancy services, with a focus on the approval and licensing process, than they are to do with rules relating to mergers and acquisitions.
The measures are the latest reform the Chinese government has issued as it continues to bring its regulations in line with the international community. As with a number of laws issued this year, for example the PRC Anti-monopoly Law and the PRC Employment Contract Law, lawyers have applauded the government’s objective, but many question its interpretation and lack of clarity.
While the CSRC still acts as the regulator for M&A activities and reorganisation of listed...
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