China Tightens Oversight of Securities and Fund Firms’ Third-Party Internet Platform Referral Channels

China's regulators have issued new requirements on the ex ante assessment mechanism and ongoing monitoring of securities and fund institutions that outsource referral channels to third-party internet platforms, according to Jiemian News. The notice is a detailed implementation of Article 21 and Article 23 of the Financial Products Online Marketing Administration Measures, which require financial institutions that委托 third-party internet platforms to provide services for online marketing of financial products to establish an ex ante assessment mechanism and continuously monitor the platforms’ compliance, security and contract performance. Regulators will treat cooperation between industry institutions and third-party internet platforms as a routine supervisory focus, and will launch on-site inspections for high-risk arrangements; any violations will be handled in accordance with laws and regulations.