Circular on Issuing the Standards for Compliance Management in Securities Investment Fund Management Companies
Circular on Issuing the Standards for Compliance Management in Securities Investment Fund Management Companies
[Lexis China Comments]
According to the Announcement on Issuing the revised Circular on Issuing the Standards for Compliance Management in Securities Investment Fund Management Companies (Zhong Ji Xie Fa [2024] No. 2), this document has been revised.
Circular on Issuing the Standards for Compliance Management in Securities Investment Fund Management Companies
Zhong Ji Xie Fa [2017] No.7
September 13, 2017
All relevant institutions,
For the purposes of guiding securities investment fund management companies (the "fund management companies") to effectively implement the Measures for Compliance Management of Securities Companies and Securities Investment Fund Management Companies (the "Measures") and improving the compliance management level of fund management companies, the Asset Management Association of China has drafted the Standards for Compliance Management in Securities Investment Fund Management Companies (the "Standards") in accordance with the Law of the People's Republic of China on Securities Investment Funds, the Measures and the Articles of Association of the Asset Management Association of China. Upon the approval of the council of the Asset Management Association of China by voting, the Standards are hereby promulgated, and shall come into force as of October 1, 2017. Where the allocation of the compliance administrators of fund management companies does not comply with Article 21 hereof, it shall, through recruitment, adjustment of working posts and other ways, as soon as possible, ensure compliance with the requirements prior to December 31, 2017.
All relevant institutions shall earnestly implement the requirements of the Standards, and effectively carry out the relevant work of compliance management. With regard to securities companies engaging in the management of the public offering of securities investment fund business, insurance asset management institutions, private asset management institutions and other public securities investment fund managers, the Standards shall be applied mutatis mutandis.
The Circular is hereby given.
Standards for Compliance Management in Securities Investment Fund Management Companies
Chapter I General Provisions
Article 1 For the purposes of guiding securities investment fund management companies ("fund management companies") to effectively implement the Measures for Compliance Management of Securities Companies and Securities Investment Fund Management Companies (the "Measures") and improving the compliance management level of fund management companies, the Standards for Compliance Management in Securities Investment Fund Management Companies (the "Standards") are formulated in accordance with the Law of the People's Republic of China on Securities Investment Funds (the "Investment Fund Law"), the Measures and the Articles of Association of the Asset Management Association of China.
Article 2 The fund management companies established within the territory of the People's Republic of China shall, based on compliance with the Measures, implement compliance management according to the Standards.
Article 3 Fund management companies shall, through effective internal control measures, put compliance management into practice, and shall comply with the following principles:
1. Principle of comprehensiveness. A company shall establish a sound compliance management system, and be equipped with corresponding compliance personnel, and combined with the company's business scale, types, internal institution setting and other actual situation achieve complete coverage of compliance management.
2. Principle of effectiveness. A company shall, through applying scientific management methods and systematized management tools, establish effective compliance management processes in order to ensure the compliant operation of the company and the fund, and improve the effectiveness of compliance management.
3. Principle of power - responsibility matching. The powers and responsibilities arising from compliance management shall be reasonably allocated and arranged among the board of directors, the management, all subordinate entities (all departments, branches and subsidiaries at all levels) of the company and the staff, so as to achieve power-responsibility matching, and all subjects shall bear the corresponding compliance responsibilities within their scopes of official duty.
4. Principle of mutual restriction. The setup of the company's internal departments and posts shall be subject to the clear division of power and responsibility and mutual restriction, and shall play the role of mutual restriction and mutual supervision in aspects of governance structure, institution setup, power-responsibility allocation, business process and other aspects.
5. Principle of timeliness. Compliance management shall reflect the new trends of fund industry development, and embody the latest requirements of laws, regulations, normative documents, regulatory policies and self-discipline rules in a timely manner, and be constantly adjusted and improved.
Article 4 The compliance management system of fund management companies shall be independent.
The shareholders, directors and senior officers of fund management companies may not directly issue an instruction to the inspector general or the department of compliance management or interfere with their works in violation of the prescribed duties and procedures.
The inspector general of fund management companies and the department of compliance management shall not be subject to undue influence by any shareholders, directors or senior officers as well as other departments and personnel during the performance of their duties, and shall refuse any instruction infringing the interests of fund shareholders.
When cooperating with shareholders' work, fund management companies shall comply with laws and regulations, self-discipline rules and other provisions on the isolation of key information.
Article 5 Fund management companies shall set up and adhere to the following compliance concepts:
1. Compliance shall be upheld by all staff. Compliance is a basic code of conduct for all staff of a company. A company shall cultivate the compliance awareness of all staff, and improve the professional sense of honor and professional level of compliance administrators. All staff of a company shall strictly abide by the laws, regulations, self-discipline rules and other codes of conduct, and take the initiative to prevent, detect and defuse compliance risks.
2. The management shall take the lead in compliance.
......
According to the Announcement on Issuing the revised Circular on Issuing the Standards for Compliance Management in Securities Investment Fund Management Companies (Zhong Ji Xie Fa [2024] No. 2), this document has been revised.
Circular on Issuing the Standards for Compliance Management in Securities Investment Fund Management Companies
Zhong Ji Xie Fa [2017] No.7
September 13, 2017
All relevant institutions,
For the purposes of guiding securities investment fund management companies (the "fund management companies") to effectively implement the Measures for Compliance Management of Securities Companies and Securities Investment Fund Management Companies (the "Measures") and improving the compliance management level of fund management companies, the Asset Management Association of China has drafted the Standards for Compliance Management in Securities Investment Fund Management Companies (the "Standards") in accordance with the Law of the People's Republic of China on Securities Investment Funds, the Measures and the Articles of Association of the Asset Management Association of China. Upon the approval of the council of the Asset Management Association of China by voting, the Standards are hereby promulgated, and shall come into force as of October 1, 2017. Where the allocation of the compliance administrators of fund management companies does not comply with Article 21 hereof, it shall, through recruitment, adjustment of working posts and other ways, as soon as possible, ensure compliance with the requirements prior to December 31, 2017.
All relevant institutions shall earnestly implement the requirements of the Standards, and effectively carry out the relevant work of compliance management. With regard to securities companies engaging in the management of the public offering of securities investment fund business, insurance asset management institutions, private asset management institutions and other public securities investment fund managers, the Standards shall be applied mutatis mutandis.
The Circular is hereby given.
Standards for Compliance Management in Securities Investment Fund Management Companies
Chapter I General Provisions
Article 1 For the purposes of guiding securities investment fund management companies ("fund management companies") to effectively implement the Measures for Compliance Management of Securities Companies and Securities Investment Fund Management Companies (the "Measures") and improving the compliance management level of fund management companies, the Standards for Compliance Management in Securities Investment Fund Management Companies (the "Standards") are formulated in accordance with the Law of the People's Republic of China on Securities Investment Funds (the "Investment Fund Law"), the Measures and the Articles of Association of the Asset Management Association of China.
Article 2 The fund management companies established within the territory of the People's Republic of China shall, based on compliance with the Measures, implement compliance management according to the Standards.
Article 3 Fund management companies shall, through effective internal control measures, put compliance management into practice, and shall comply with the following principles:
1. Principle of comprehensiveness. A company shall establish a sound compliance management system, and be equipped with corresponding compliance personnel, and combined with the company's business scale, types, internal institution setting and other actual situation achieve complete coverage of compliance management.
2. Principle of effectiveness. A company shall, through applying scientific management methods and systematized management tools, establish effective compliance management processes in order to ensure the compliant operation of the company and the fund, and improve the effectiveness of compliance management.
3. Principle of power - responsibility matching. The powers and responsibilities arising from compliance management shall be reasonably allocated and arranged among the board of directors, the management, all subordinate entities (all departments, branches and subsidiaries at all levels) of the company and the staff, so as to achieve power-responsibility matching, and all subjects shall bear the corresponding compliance responsibilities within their scopes of official duty.
4. Principle of mutual restriction. The setup of the company's internal departments and posts shall be subject to the clear division of power and responsibility and mutual restriction, and shall play the role of mutual restriction and mutual supervision in aspects of governance structure, institution setup, power-responsibility allocation, business process and other aspects.
5. Principle of timeliness. Compliance management shall reflect the new trends of fund industry development, and embody the latest requirements of laws, regulations, normative documents, regulatory policies and self-discipline rules in a timely manner, and be constantly adjusted and improved.
Article 4 The compliance management system of fund management companies shall be independent.
The shareholders, directors and senior officers of fund management companies may not directly issue an instruction to the inspector general or the department of compliance management or interfere with their works in violation of the prescribed duties and procedures.
The inspector general of fund management companies and the department of compliance management shall not be subject to undue influence by any shareholders, directors or senior officers as well as other departments and personnel during the performance of their duties, and shall refuse any instruction infringing the interests of fund shareholders.
When cooperating with shareholders' work, fund management companies shall comply with laws and regulations, self-discipline rules and other provisions on the isolation of key information.
Article 5 Fund management companies shall set up and adhere to the following compliance concepts:
1. Compliance shall be upheld by all staff. Compliance is a basic code of conduct for all staff of a company. A company shall cultivate the compliance awareness of all staff, and improve the professional sense of honor and professional level of compliance administrators. All staff of a company shall strictly abide by the laws, regulations, self-discipline rules and other codes of conduct, and take the initiative to prevent, detect and defuse compliance risks.
2. The management shall take the lead in compliance.
......