The Shanghai Gold Exchange ("SGE") has recently issued the Implementing Rules for the Registration and Custody of Gold Asset Management Business (the "Implementing Rules"), immediately effective from the date of issuance.
The Implementing Rules are divided into six chapters which are general provisions, registration and escrow accounts, registration, custody, confidentiality and publicity of information, and supplementary provisions. The Implementing Rules provide that: 1. if a gold asset management product that has been offered continues to exist 90 days after the effective date of these Implementing Rules, it should be registered and placed under custody in accordance with the requirements set out in these Implementing Rules. 2. The issuing or management institutions and the registration and custody institutions shall inform the SGE within one month after the relevant business is ceased. If the issuing or management institutions and the registration and custody institutions fail to register for six consecutive months, the SGE is entitled to disable their relevant authority in the Registration and Custody System for Gold Asset Management Business. 3. If the issuing or management institutions, or registration and custody institutions violate these Implementing Rules, the SGE may adopt administrative measures such as publicly condemning them and reporting such failure to the financial regulator, and will reserve the right of accountability.