• Consider, collect and report opinions and suggestions regarding/from the industry;
• Study and explain policies and programs relating to the industry;
• Prepare and review self-regulatory codes, rules, performance standards and guidelines for the securities investment consulting industry;
• Organize and support innovative activities of the industry, summarize and advocate the experiences;
• Make recommendations to the SAC on punishment measures to member companies or professionals violated laws and regulations or self-regulatory codes and rules by the SAC;
• Mediate between member societies on business disputes;
• Assist in securities analysts training;
• Promote international exchange and cooperation;
• Fulfil other missions as may be entrusted by the SAC.

SAAC is under the direction of the SAC. The decision-making body of the Association is the Members Meeting that would hold a meeting every two years. The Board of Directors is the standing entity of the Members Meeting and acts on behalf of the Members Meeting when it is not in session. The Office carries out the day-to-day administration.

ORGANISATION CHART

The SAAC, a specialized organization of and working under the leadership of the SAC, is a nationwide self-regulatory organization for the Chinese securities investment consulting industry.

SAAC was established on 5th July 2000. On 20 June 2007, SAAC held its third Members Meeting and elected its new Board. There are currently 30 experts from the industry sitting in the Board, including 1 president, 7 vice presidents, 17 committee members and 5 consultants. During the meeting, SAAC has redefined its objectives and revised its Working Rules.

According to the Articles of Association of SAAC, the SAAC may have three categories of membership: institutional members, individual members and honorary members.

By the end of June 2007, the SAAC has 90 institutional members. There are as yet, no individual or honorary members.

According to the “Measures on the Management of Securities Professional Qualification”, promulgated by China Securities Regulatory Commission on December 16th 2002 and effective on February 1st 2003, any person who wishes to engage in securities consulting business must pass the license examinations held by the SAC to obtain securities professional qualification and registered with the SAC to obtain practicing certificate. Education programs of the SAAC are always consolidated with the SAC’s programs. Assist the SAC in the training and education for securities investment analysts is one of the missions of the SAAC.

The SAAC is committed to upgrade the professional conduct level of Chinese securities analysts to the international standards. For such purpose, the SAAC has become a member of ACIIA. On January 12 2005, the national examination program of the SAC was accredited by the ACIIA, as recommended by the IEC. Those who passed the above-mentioned program may proceed directly to the final level of the CIIA examinations.

The first CIIA Examination was launched by SAC in China in March 2006. Till March 2007, there are 505 CIIA examination papers taken by Chinese candidates. 123 passed.

The professional development program of the SAAC in the year 2007 mainly includes the following:

1. Actively participate in the amendment process of the “Preliminary Methods on the Management of Securities and Future Consulting Business” organized by the China Securities Regulatory Commission.
2. Engage in studies regarding role and functions of securities analysts and professional level assessment methods, to enhance selfregulatory management toward securities analysts.
3. Promote investor education, helping investors to build up correct investment philosophy.
4. Enhance researches on front problems and accelerate further development of the industry.
5. Study appraisal methods for excellent securities analysts and upgrade securities analysts’ social image.
6. Promote international exchange and cooperation, promote professional and international development of securities investment consulting industry.