On August 1, the China Securities Regulatory Commission ("CSRC") and the Ministry of Finance ("MOF") issued the Provisions on Relevant Matters Concerning Firstly Using the Properties of Those with Securities-related Violations to Assume Civil Liability for Compensation (the "Provisions"), effective from the date of issuance.

The Provisions mainly touch upon the application subjects, application term, application materials, and handling procedures, clarifying the working mechanism for using the administrative fines and confiscations paid by the violators to cover the civil liability for compensation. Among others, the Provisions specify that the victim investor may file an application pursuant to the Provisions within one year after the people's court issues a ruling to terminate the execution; if an application is made beyond the one-year time limit, it will not be accepted by the CSRC. Where the violator is declared bankrupt by the people's court, the victim investor may file an application pursuant to the Provisions within one year after the end of the bankruptcy procedure or the end of the additional distribution procedure; if an application is made beyond the one-year time limit, it will not be accepted by the CSRC.

(Source: China Securities Regulatory Commission)