Section 5 Securities Lending and Borrowing Business

3 Having professionals, technical conditions, funds and securities required for carrying out securities lending and borrowing business

Article 56 Where a securities firm carries out securities lending and borrowing but does not have sufficient funds or securities, it can borrow from the securities financial companies.

Article 49 A securities firm intending to start securities lending and borrowing business shall meet the following requirements

Article 31 If a securities firm is engaged in such businesses as securities assets management and capital and securities financing, it should develop reconciliation statement and send it to customers on monthly basis.

4 Having good management system and implementation scheme for securities lending and borrowing business

Article 50 A securities firm that carries out securities lending and borrowing business shall sign a securities lending and borrowing contract with the customer, and shall open a customer securities guarantee account with the securities registration and settlement organs, and a customer funds guarantee account with the designated commercial bank in the name of the securities firm in accordance with the provisions of the securities regulatory agency under the State Council.

Article 29 The securities firm that is engaged in securities assets management business, capital and securities financing business, securities related finance product sales should get knowledge of identity, property, income status, securities investment experience and risk preference of customers according to prescribed procedure, and record as well as keep the information in written or electronic form.

Article 20 If a securities firm has two or more kinds of securities brokerage business, securities assets management business, financing with capital and securities, securities underwriting, securities sponsors, its board should set up remuneration and nomination committee, auditing committee and risk control committee to perform rights prescribed in company regulation.

Article 30 Before the securities firm signs securities dealing entrustment, securities assets management, capital and securities financing contracts with customers, it should appoint specialist to introduce business rule and contract content to customers and let customer sign and confirm on risk disclosure letter.

quot (4) Receivables financing means any transaction in which value, credit or related services are provided for value in the form of receivables. Receivables financing includes, but is not limited to, factoring, forfaiting, securitization, project financing and refinancing.

Article 48 Securities lending and borrowing referred to in this article means that in the securities trading at the stock exchange or other securities trading places that have been approved by the State Council, securities firms lend capital or securities to customers for them to buy or sell securities based on the corresponding collaterals provided by the customers.

The types of securities that can be lent to the customer by the securities firm and can be bought with the funds lent to the customer by the securities firm, the types and coefficient of the securities that can be used as deposit, the time limit for securities lending and borrowing, the minimum guarantee maintenance ratio and the time limit for making up the difference shall be determined by the stock exchange.

If the customer fails to make up the difference within the prescribed period, or fails to pay back the due debts of the securities lending and borrowing, the securities firm shall immediately dispose of its collaterals according to the agreement.

Article 51 A securities firm shall use its own funds or funds that have been raised according to the law when lending funds to the customer it shall use its own securities or securities whose right of disposal has been legally obtained by it when lending securities to the customer.

Securities can be used as the deposit.

There have also been initiatives in some countries to increase bond financing options for SMEs.

Financial services

The application of funds of an insurance company is limited to bank deposits, trading of government and financial bonds and other forms of fund application stipulated by the State Council.

The economy of Gibraltar is largely dependent on tourism and the provision of financial services, such as banking, insurance, shipping and portfolio management.

(4) Where the investment scopes or investment proportions of the security self operation business and portfolio management business of a securities firm are not conformed to provisions

Article 61 The securities firm shall not provide financing or warranty to other people using the assets of the securities brokerage customers or securities assets management customers.

Personnel (human resources), equipment, and operating costs of financial police are provided from the resources of the Ministry of the Interior.

The deposit given by the customer, all the securities that have been purchased through securities lending and borrowing, and all the funds from the sales of securities are collaterals to the securities firm, and shall be deposit to the customer securities guarantee account or the customer funds guarantee account and credited to the customer s credit granting account.

23 Transfer of Financial Assets

Critically, the package should be financed by government bonds issued by the Ministry of Finance, not by commercial banks via local government financing vehicles. Any loosening of monetary policy should be aimed directly at accommodating fiscal policy.

Section 4 Securities Assets Management Business

For example, the Republic of Korea has undertaken measures to encourage the issuance of bonds by SMEs.10 One objective of the Asian bond market initiative11 is to increase bond financing options for smaller companies in Asia.

Such tactics, in which banks are nudged, not coerced, into investing in government debt, constitute soft financial repression. But governments can go beyond such methods, demanding that financial institutions maintain or increase their holdings of government debt, as the UK s Financial Service Authority did in 2009.

In the eurozone, lower long term rates for government bonds are thus unlikely to improve the corporate sector s financing conditions and boost investment demand. By contrast, in the US, a much larger proportion of investment is financed by issuing bonds, which can have a longer maturity than bank loans.

The newest addition to the range of financial services was the Cayman Islands Stock Exchange, which opened on 2 January 1997.

Financial establishments, insurance, real estate, and services provided to companies

(2) Where any shareholder and actual holder of a securities firm force, incite, assist or accept the securities firm to provide financing or warranty with assets of stock brokerage clients or stock asset management clients

23 Transfer of Financial Assets.

(4) As regards tradable financial assets, it is required to separately list the beginning of period and end of period fair value of tradable bond investment, tradable equity instrument investment, financial assets which are specified to be measured on fair value and whose fluctuations are included in the current profits and losses, derivative financial assets and other tradable financial assets.

An important criterion for the choice of additional measures should be the extent of their influence over broad financing conditions in the private economy. For example, purchases of bonds issued by euro area non financial corporations (NFCs) would probably have some direct pass through effect on firms financing costs.

Accountability for results in this area rests with the UNCDF Microfinance Unit. Some highlights

No units or individuals shall force, incite, assist or accept the securities firm to provide financing or warranty with the assets of the securities brokerage customers or securities assets management customers.

Article 24When an enterprise becomes a party to a financial instrument, it shall recognize a financial asset or financial liability.

The Regionalization Finance Scheme (RFS) from IE Singapore also helps local SMEs (total assets less than S 30 million) to set up overseas operations.

Third, the success of China s financial system was built on state owned banks financing of large infrastructure projects and foreign financing of export production through FDI and trade. The financial system has yet to address adequately the challenges of financial inclusivity, particularly funding of SMEs and rural areas, and exposure to excess capacity in selected industries.

Capital contribution from shareholder of securities firms should be verified with evidence by accounting firm with related qualification of securities and futures the nonmonetary property should be evaluated by assets evaluation agency with securities related qualification.

Article 21 In case an enterprise raises debt funds under law in forms of loans, issuing bonds or financial leases and so on, it shall define the purpose of fund raising, make necessary decisions on capital structure in accordance with the fund costs, debt risks and reasonable fund demands and conclude a written contract.

The Australian Securities and Investments Commission was an independent government body that was specifically responsible for enforcing corporate and financial services laws.

Moreover the Financial Services Commission has been in close contact with the financial services industry in Gibraltar informing of developments and reminding institutions to be vigilant in respect of terrorist financing.