The China Securities Regulatory Commission ("CSRC") has recently issued the Administrative Measures for Private Asset Management Business of Securities and Futures Operators and the Administrative Provisions on the Operation of Private Asset Management Schemes of Securities and Futures Operators (collectively as "Asset Management Rules"), both of which take effect immediately from the date of issuance.
Remaining highly consistent with the Guiding Opinions on Regulating the Asset Management Business of Financial Institutions (the "Guiding Opinions"), the Asset Management Rules slightly relax some regulatory indicators, compared with those under the current rules. The principal contents of the Asset Management Rules embrace seven aspects as below. The first is unifying legal relations and clarifying basic principles. The second is systematically defining business forms and straightening out asset categories. The third is by and large unifying the regulatory criteria. The fourth is duly using lessons learnt from publicly offered business for reference and improving the institutional system for investment operation. The fifth is solidifying subject responsibilities of business operators. The sixth is stepping up efforts in preventing and controlling major risks and making improvements to institutional drawbacks. And the last is reinforcing the frontline oversight and improving the collaboration between regulators and self-regulation organizations. Additionally, with regard to the arrangement for the transition period, the Asset Management Rules set a transition period same as that provided in the Guiding Opinions, and set out a flexible arrangement stating which rules, the former ones or new ones, shall apply before and after the effectiveness of the Asset Management Rules.