April 30, 2009

China to Regulate Foreign Institutions Providing Financial Information Services

On April 30, 2009, the State Council Information Office (the "SCIO"), the Ministry of Commerce ("MOFCOM") and the State Administration for Industry and Commerce jointly released the Administrative Provisions for Foreign Institutions Providing Financial Information Services in China (the "Provisions"), effective June 1, 2009.  The Provisions are applicable to all foreign institutions and foreign-invested enterprises providing financial information services in China.  According to the Provisions, qualified foreign institutions, including those in Hong Kong, Macao and Taiwan, planning to provide financial information services in China must be approved by the SCIO, and such approval is valid for two years.  Approved foreign institutions must file any execution, change or termination-of-service contracts with domestic customers within thirty days of such execution, change or termination.  The Provisions further stipulate that the establishment of a foreign-invested financial information services enterprise is subject to the approval of MOFCOM and that such enterprises may not engage in the news business or any business operated by news agencies.

Copyright ©2009 by Kaye Scholer LLP. All Rights Reserved. This publication is intended as a general guide only. It does not contain a general legal analysis or constitute an opinion of Kaye Scholer LLP or any member of the firm on the legal issues described. It is recommended that readers not rely on this general guide but that professional advice be sought in connection with individual matters.References herein to "Kaye Scholer LLP & Affiliates," "Kaye Scholer," "Kaye Scholer LLP," "the firm" and terms of similar import refer to Kaye Scholer LLP and its affiliates operating in various jurisdictions.

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