The China Securities Association issued Management Rules for Securities Firms’
Bond Investment Advisory Business, setting a six-month transition and taking
effect Feb. 5, 2027. Firms must establish scientific, reasonable compensation
and performance-evaluation systems that emphasize compliance in business conduct
and client satisfaction. Firms must include cases where bond advisers fail to
exercise due diligence or prudence — causing material risk or client complaints
— in staff assessments. The rules prohibit using client excess returns directly
as a performance metric for bond investment-advisory personnel.
