02 November, 2015
For SFC regulated entities which have a Representative Office in China, please be reminded that the Chief Representative is expected to be based in China on a full-time basis. The Representative Office should keep track of the Chief Representative’s travelling record.
If the Chief Representative intends to leave China for over one month, he should appoint a deputy to carry out his duties during his absence so that the office’s operations are not interrupted. Previously there was a CSRC filing requirement for absence over one month of the Chief Representative. Such filing requirement was abolished in April 2015. However, please note that the requirement for the Chief Representative to be based in China on a full-time basis has not changed. The Chief Representative should not take up dual positions in an organisation for compliance reasons.
For violation, in an extreme case, the CSRC may issue a warning, impose a fine or require the closure of the Representative Office.
For further information, please contact:
Machiuanna Chu, Partner, Deacons
machiuanna.chu@deacons.com.hk
