China Regulator Issues Compensation Guidelines to Brokers, Funds

China’s securities regulator issued guidelines on pay to the nation’s brokers and funds to avoid handing out “excessive” short-term incentives and prevent financial risks.

The China Securities Regulatory Commission said the curbs, which include deferring payouts, were based on market law and aimed at strengthening compliance and risk management, according to a statement on Tuesday. Meanwhile, the watchdog said it didn’t set limits on the compensation of bankers or specify any execution details.

The response came after Bloomberg News reported on Monday that the CSRC told global banks including Credit Suisse Group AG, Goldman Sachs Group Inc. and UBS ...