Administrative Measures for Private Asset Management Business of Securities and Futures Operators
Administrative Measures for Private Asset Management Business of Securities and Futures Operators
Administrative Measures for Private Asset Management Business of Securities and Futures Operators
Order of the China Securities Regulatory Commission No.151
October 22, 2018
The Administrative Measures for Private Asset Management Business of Securities and Futures Operators, adopted upon deliberation at the eighth executive meeting of the Chairman of the China Securities Regulatory Commission in 2018, are hereby promulgated and shall come into force as of the date of promulgation.
Liu Shiyu, Chairman of the China Securities Regulatory Commission
Administrative Measures for the Private Asset Management Business of Securities and Futures Operators
Contents
Chapter I General Provisions
Chapter II Business Entities
Chapter III Business Form
Chapter IV Private Fundraising
Chapter V Investment Operation
Chapter VI Information Disclosure
Chapter VII Change, Termination and Liquidation
Chapter VIII Risk Management and Internal Control
Chapter IX Supervision and Administration and Legal Liability
Chapter X Supplementary Provisions
Chapter I General Provisions
Article 1 The Measures are formulated in accordance with the Securities Law of the People's Republic of China, the Law of the People's Republic of China on Securities Investment Funds (the "Law on Securities Investment Funds"), the Regulations on the Supervision and Administration of Securities Companies, the Administrative Regulations on Futures Trading, the Guiding Opinions on Regulating the Asset Management Business of Financial Institutions (Yin Fa [2018] No.106, the "Guiding Opinions") and the relevant laws and regulations, in order to regulate the private asset management business of securities and futures operators, protect the legitimate rights and interests of investors and the relevant parties, and maintain the order of the securities and futures market.
Article 2 Where a securities and futures operator carries out private fundraising activities, or establishes a private asset management scheme (the "asset management scheme") and acts as the manager after receiving property by way of bailment with a trustee agency acting as the custodian, within the territory of the People's Republic of China, to conduct investing activities for the benefit of investors under laws and regulations and the asset management contracts, the Measures shall apply.
For the purpose of the Measures, securities and futures operators refer to securities companies, fund management companies, futures companies and subsidiaries established by the aforementioned institutions in accordance with the law to engage in private equity asset management business.
The asset securitization of funds privately raised by securities and futures operators shall be otherwise stipulated by the China Securities Regulatory Commission (the "CSRC").
Article 3 When engaging in private asset management business, securities and futures operators shall follow the principles of free will, fairness, good faith and the supremacy of customer interests, be dedicated, cautious and diligent, and safeguard the legitimate rights and interests of investors, and serve the real economy, and may not harm national interests, public interests and the legitimate rights and interests of others.
Securities and futures operators shall abide by prudent operating rules, formulate scientific and rational investment strategies and risk management systems to effectively prevent and control risks and ensure that their business development is compatible with their capital strength, management capabilities and risk control levels.
Article 4 Securities and futures operators shall not engage in private asset management business on the balance sheet, or promise, in any way, investors no loss in principal or a minimum income.
Investors participating in asset management schemes shall make prudent decisions according to their own abilities and independently bear investment risks.
Article 5 When engaging in private asset management business, securities and futures operators shall implement centralized operation management and establish and improve internal control and compliance management systems, take effective measures to separate private asset management business from their other business, control the improper flow and use of sensitive information, and prevent insider trading, use of undisclosed information for transactions, conflicts of interest and interest transfer.
Article 6 The debts on the property under an asset management scheme shall be borne by such property, and investors shall be liable for the debts on such property to the extent of their capital contributions.
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Order of the China Securities Regulatory Commission No.151
October 22, 2018
The Administrative Measures for Private Asset Management Business of Securities and Futures Operators, adopted upon deliberation at the eighth executive meeting of the Chairman of the China Securities Regulatory Commission in 2018, are hereby promulgated and shall come into force as of the date of promulgation.
Liu Shiyu, Chairman of the China Securities Regulatory Commission
Administrative Measures for the Private Asset Management Business of Securities and Futures Operators
Contents
Chapter I General Provisions
Chapter II Business Entities
Chapter III Business Form
Chapter IV Private Fundraising
Chapter V Investment Operation
Chapter VI Information Disclosure
Chapter VII Change, Termination and Liquidation
Chapter VIII Risk Management and Internal Control
Chapter IX Supervision and Administration and Legal Liability
Chapter X Supplementary Provisions
Chapter I General Provisions
Article 1 The Measures are formulated in accordance with the Securities Law of the People's Republic of China, the Law of the People's Republic of China on Securities Investment Funds (the "Law on Securities Investment Funds"), the Regulations on the Supervision and Administration of Securities Companies, the Administrative Regulations on Futures Trading, the Guiding Opinions on Regulating the Asset Management Business of Financial Institutions (Yin Fa [2018] No.106, the "Guiding Opinions") and the relevant laws and regulations, in order to regulate the private asset management business of securities and futures operators, protect the legitimate rights and interests of investors and the relevant parties, and maintain the order of the securities and futures market.
Article 2 Where a securities and futures operator carries out private fundraising activities, or establishes a private asset management scheme (the "asset management scheme") and acts as the manager after receiving property by way of bailment with a trustee agency acting as the custodian, within the territory of the People's Republic of China, to conduct investing activities for the benefit of investors under laws and regulations and the asset management contracts, the Measures shall apply.
For the purpose of the Measures, securities and futures operators refer to securities companies, fund management companies, futures companies and subsidiaries established by the aforementioned institutions in accordance with the law to engage in private equity asset management business.
The asset securitization of funds privately raised by securities and futures operators shall be otherwise stipulated by the China Securities Regulatory Commission (the "CSRC").
Article 3 When engaging in private asset management business, securities and futures operators shall follow the principles of free will, fairness, good faith and the supremacy of customer interests, be dedicated, cautious and diligent, and safeguard the legitimate rights and interests of investors, and serve the real economy, and may not harm national interests, public interests and the legitimate rights and interests of others.
Securities and futures operators shall abide by prudent operating rules, formulate scientific and rational investment strategies and risk management systems to effectively prevent and control risks and ensure that their business development is compatible with their capital strength, management capabilities and risk control levels.
Article 4 Securities and futures operators shall not engage in private asset management business on the balance sheet, or promise, in any way, investors no loss in principal or a minimum income.
Investors participating in asset management schemes shall make prudent decisions according to their own abilities and independently bear investment risks.
Article 5 When engaging in private asset management business, securities and futures operators shall implement centralized operation management and establish and improve internal control and compliance management systems, take effective measures to separate private asset management business from their other business, control the improper flow and use of sensitive information, and prevent insider trading, use of undisclosed information for transactions, conflicts of interest and interest transfer.
Article 6 The debts on the property under an asset management scheme shall be borne by such property, and investors shall be liable for the debts on such property to the extent of their capital contributions.
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