On 28 Jan. 2022, China Securities Regulatory Commission, the Ministry of Justice and the All China Lawyers Association jointly issued the “Guidelines for the Application of Regulatory Rules – Legal Class No.2: Rules for the Practice of Law Firms Engaged in the Initial Public Offering (IPO) and Listings” (hereinafter “the Rules”, 监管规则适用指引——法律类第2号：律师事务所从事首次公开发行股票并上市法律业务执业细则), which took effect from 27 Feb. 2022.
The Rules, composed of 11 Chapters and 68 Articles, touches upon the major matter of law firms issuing legal opinions.
The IPO and listing of securities service mentioned in the Rules refers to the service in which the law firm accepts the commission of the company (i.e. the issuer) to go IPO in China, assigns the firm’s lawyers to verify and validate the relevant legal matters, and issues legal opinions and other instruments.
In recent years, Chinese law firms engaged in IPO business have often been investigated and punished by regulatory authorities for non-compliance, or have been subject to large claims by investors.
The Rules is designed to address these non-compliance behaviors.
Cover Photo by Sifan Liu on Unsplash
Contributors: CJO Staff Contributors Team
