Corporate compliance in progress


    During the roundtable sessions of the CBLJ Forum 2019, Zhong Lun Law Firm moderated a discussion with in-house legal counsel focusing on “Corporate compliance management: executive’s responsibility, securities compliance, criminal law compliance, anti-corruption in private enterprises, and how to cope with government supervision”.

    Liu Xiangwen, an equity partner at the firm, gave a keynote speech in this session. Gary Gao, Zhang Baosheng, Zhao Zhicheng, all equity partners with the firm, together with Li Yikun, vice president of Fox Financial Technology, and Peter Su, general counsel at Tsinghua Tongfang, participated in the panel discussion.

    From left: Peter Su, Liu Xiangwen, Zhang Baosheng, Gary Gao

    According to Liu, China has stepped up its efforts in law enforcement, anti-corruption and supervision in the past five years. He also referred to the international environment in his speech and pointed out that Chinese enterprises would, in the process of going global, be compelled by international rules to attach greater importance to compliance, rather than blindly seeking commercial interests against the background of Sino-US trade conflicts and the Belt and Road Initiative.

    Gao held that Chinese enterprises would go through considerable hardships in the course of going global if they thought they could pollute the environment and break the rules. In his opinion, the root cause of Chinese enterprises not being respected should be traced back to the rule of law. He said: “The experience that Chinese enterprises learn from their success in the past 40 years could be the root cause of their failure in the future.”

    Zhang opined that regulatory bodies have taken a strict stance towards securities supervision and punishment. In recent years, the number of cases involving securities breaches is constantly increasing. Therefore, he suggested that entities being supervised keep a close eye on policy changes in the securities market, receive compliance training through agencies, and find experienced lawyers in this area if they are under scrutiny.

    On corporate anti-corruption, Zhao said corruption in private enterprises was so common that most large-scale private enterprises have set up a position known as anti-corruption officer. He suggested that companies could consider experienced talent who have worked at public security bureaus, prosecutor’s offices and courts for this position.

    Li Yikun shared her compliance-related experiences with internet financial businesses. She said regulatory bodies were willing to exchange ideas with industry players because it is easier to implement the relevant regulations after proper familiarization with the market. She added that businesses should not only think about how to comply with existing rules and regulations, but also participate in the formulation of industry standards, by which “we can make compliance become a competitive edge of Chinese enterprises”.

    The media coverage on the roundtable conference is organized based on shorthand transcripts. Any remarks by the guest speakers and scholars represent their own opinions, and not the opinions of the organizations to which they belong. Read the full report of the CBLJ Forum 2019 here.