China Securities Regulatory Commission On The Revision Of The Regulation On Operation Of Securities Investment Funds Sixth And 12Th Of Decision

Original Language Title: 中国证券监督管理委员会关于修改《证券投资基金运作管理办法》第六条及第十二条的决定

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Read the untranslated law here: http://www.chinalaw.gov.cn/article/fgkd/xfg/gwybmgz/201207/20120700370452.shtml

China Securities Regulatory Commission on the revision of the regulation on operation of securities investment funds sixth and 12th of decision

    (June 19, 2012, the China Securities Regulatory Commission announced come into force on the date of promulgation, 79th), sixth revised as follows: "application to raise funds, fund managers, fund trustees to be appointed subject to the following conditions:

    (A) the Fund Manager to be appointed as fund management companies established according to law, fund trustees to be appointed as a commercial bank with Fund custody qualifications;

    (B) meet the requirements of the China Securities Regulatory Commission, and management and managed to be adapted to the Fund managers and other business personnel;

    (C) investment fund management, sales and other business links, registration and valuation system, code of conduct, does not affect the normal operation of the Fund, damages or may damage the legal rights of the holders of shares of the Fund;

    (D) the recent year there were illegal acts subject to administrative punishments or criminal penalty;

    (E) no regulator investigations for violations, or is in a corrective period;

    (Vi) does not exist on the operation of the Fund has caused or is likely to adversely affect the major changes, or other important matters such as litigation and arbitration;

    (G) there is no sound corporate governance, business management, internal control and risk management system cannot be effective implementation, deterioration of the financial situation and other important operational risks; (VIII) other conditions stipulated by the CSRC based on prudent regulatory principles.

    ”

    Second, 12th as: "the expiry of the term of the Fund raising, raising total fund units meet the requirements of article 44th of the securities investment fund law, and have one of the following conditions, fund managers should be in accordance with the provisions of the verification and fund filing procedures:

    (A) Fund raising total share of not less than 200 million fund raised amount of not less than 200 million Yuan Fund share holders of not less than 200 people; (Ii) Fund management company in raised Fund Shi, using company shareholders funds, and company inherent funds, and company senior management personnel or Fund Manager, personnel funds subscription Fund of amount not less than 10 million Yuan Yuan, and holds term not less than three years; fund raised share total many Yu 50 million copies, fund raised amount not less than 50 million Yuan Yuan; Fund share holding? was of number not less than 200 people.

    ”

    This decision shall come into force as of the date of.

    The operation of securities investment fund management measures under this decision be adjusted accordingly, republished.

    Report: operation of securities investment fund management approach 2012 (revised)

    (June 4, 2004, Chairman of the China Securities Regulatory Commission, the 93rd Office meeting June 19, 2012, China Securities Regulatory Commission on amendments to the administrative measures for the operation of securities investment funds, the sixth and the decision of the 12th Amendment)

    Chapter I General provisions

    First in order to regulate the operation of securities investment funds activity, protect the legitimate rights and interests of investors, and promote the healthy development of the securities investment fund market, according to the securities investment fund law and other relevant laws, administrative regulations, these measures are formulated.

    Second approach applies to securities investment funds (hereinafter funds) collection, property of the subscription and redemption of fund units, fund investments, fund allocation, the convening of the general meeting of the holders of fund units, as well as other operational activities of the Fund.

    Article engaged in operational activities of the Fund, shall abide by the laws, administrative regulations, and the China Securities Regulatory Commission (hereinafter referred to as the China Securities Regulatory Commission), and follow the principles of voluntariness, fairness, honesty and credibility, and must not harm the interests of the State and social public interests.

    The fourth China Securities Regulatory Commission and the Agency in accordance with the laws and administrative regulations, the provisions of these measures and the principle of prudent supervision, supervise and administer the operations of the Fund.

    Article fifth fund industry associations in accordance with the law and administrative regulations, the provisions of the China Securities Regulatory Commission and self-regulatory rules, self-regulation of Fund activities.

    Chapter fund raising

    Sixth section raised funds, fund managers, fund trustees to be appointed subject to the following conditions:

    (A) the Fund Manager to be appointed as fund management companies established according to law, fund trustees to be appointed as a commercial bank with Fund custody qualifications;

    (B) meet the requirements of the China Securities Regulatory Commission, and the management and managed to be adapted to the Fund managers, business people;

    (C) investment fund management, sales and other business links, registration and valuation system, code of conduct, does not affect the normal operation of the Fund, damages or may damage the legal rights of the holders of shares of the Fund;

    (D) the recent year there were illegal acts subject to administrative punishments or criminal penalty;

    (E) no regulator investigations for violations, or is in a corrective period;

    (Vi) does not exist on the operation of the Fund has caused or is likely to adversely affect the major changes, or other important matters such as litigation and arbitration;

    (G) there is no sound corporate governance, business management, internal control and risk management system cannot be effective implementation, deterioration of the financial situation and other important operational risks;

    (VIII) other conditions stipulated by the CSRC based on prudent regulatory principles.

    Article seventh to raise funds, intended to raise fund shall meet the following conditions:

    (A) there is a clear and legitimate investments;

    (B) specific mode of operation of the Fund;

    (C) in line with the China Securities Regulatory Commission on the provisions of the Fund;

    (D) with the Fund of fund managers managed to be appointed the same;

    (E) draft legal documents such as contracts, prospectuses for the Fund in accordance with laws, administrative regulations and the provisions of the China Securities Regulatory Commission;

    (Vi) and investment fund name indicates that the Fund's category feature, without damaging the State interests and public interests, fraud and misleading investors, or other violations of the legitimate rights and interests of others;

    (VII) other conditions stipulated by the CSRC based on prudent regulatory principles.

    Article eighth Fund Manager applications to raise funds, shall, in accordance with the securities investment fund law and application materials on the China Securities Regulatory Commission is due.

    Applications involve significant changes in the matter of the application materials, the Fund Manager shall, within five working days from the date of change submitted to the China Securities Regulatory Commission updates.

    The Nineth CSRC in accordance with the administrative licensing law and the securities investment fund law provisions of 39th, accept an application for fund raising, and review, make a decision.

    The tenth CSRC based on prudent regulatory principles, may appoint an expert to review the applications for fund raising.

    11th Fund raising period of fund units may not exceed three months from the date of sale.

    12th Fund expires, raising total fund units meet the requirements of article 44th of the securities investment fund law, and have one of the following conditions, fund managers should be in accordance with the provisions of the verification and fund filing procedures:

    (A) Fund raising total share of not less than 200 million fund raised amount of not less than 200 million Yuan Fund share holders of not less than 200 people;

    (Ii) Fund management company in raised Fund Shi, using company shareholders funds, and company inherent funds, and company senior management personnel or Fund Manager, personnel funds subscription Fund of amount not less than 10 million Yuan Yuan, and holds term not less than three years; fund raised share total many Yu 50 million copies, fund raised amount not less than 50 million Yuan Yuan; Fund share holds people of number not less than 200 people.

    13th the CSRC since receiving the Fund Manager capital verification report and the archival materials of the Fund be confirmed in writing within three working days from the date of; from the date of written confirmation by the CSRC, Fund registration formalities completed, the Fund contract entered into force.

    Fund Manager shall on receipt of confirmation by the CSRC shall be announced the next day.

    Disclosure during the 14th fund-raising fees, accounting fees, Attorney's fees and other costs, shall not be paid from the Fund assets Fund charges a subscription fee, from subscription fees were charged.

    Chapter III of subscription and redemption of fund units

    15th open funds of funds should be stipulated in the contract, and set out in the prospectus share Fund Manager handling the Fund subscription and redemption dates of business (hereinafter referred to as the opening day) and time.

    16th open-ended fund the Fund contract may stipulate a Fund Manager since the Fund within a certain period after the effective date of the contract does not apply for redemption but agreed period shall not exceed three months, and should be set out in the prospectus. 17th open-end Fund subscription and redemption prices of shares, according to the subscription and redemption of fund units worth adding, subtracting the relevant costs.

    Shares of open-end Fund subscription and redemption prices calculation method should be in the Fund contract and set out in the prospectus. Net value of mutual fund shares, shall after the closure of each open day, date of the net asset value of the fund divided by the number of shares of the Fund balance calculation.

    Specific calculation methods shall be set out in the contract and prospectus of the Fund.

    The 18th Fund Manager shall not be in addition to the Fund contract date or time for the subscription and redemption of fund units, or conversion.

    Investors of the Fund contract date and time for subscription, redemption or conversion requests, next time its price of subscription and redemption of fund units for handling Fund units subscription and redemption time opening day price.

    19th when investors purchase fund shares, you must purchase amount in full, except for the Special Fund provided by the CSRC; investor payments, purchase applications shall be valid.

    20th the Fund Manager shall receive investors subscription and redemption applications within three working days of the date, and to confirm the validity of the subscription and redemption.

    Fund Manager shall receive investors effective redemption application within seven working days from the date of the payment of redemption money, except for the Special Fund provided by the CSRC.

    Open Fund 21st after the Fund contract may stipulate the Fund reaches a certain size, fund managers are no longer accepting applications for subscription or purchase, it should be stated in the prospectus. Fund Manager during the Fund raising may not adjust the scale of the Fund the Fund contract.

    After the entry into force of the Fund contract and fund management in accordance with the Fund contract agreement, adjusted the size of the Fund, but it should be 3rd notice in advance, and to update the prospectus.

    22nd open the Fund contract may be for a single fund share holders of fund shares or set the limit on the number, but should be set out in the prospectus.

    23rd single open-end Fund open day redemption applications for more than 10% of total share funds, huge redemptions.

    Occurrence of large redemption of open-end funds, fund managers go through the redemption of shares shall not be lower than the total share of the Fund on the day of the 10%, on the rest of the redemption applications may delay processing.

    The 24th occurrence of large redemption of open-end funds, Fund Manager for a single fund share holders of redemption request, shall in accordance with its application to redeem shares total share on applications for redemption, determine the date of a single fund share holders apply for redemption of shares. Holders can apply for redemption of fund units chosen to date has not been to lift the handle part.

    Set aside in the Fund share holders did not choose, Fund Manager to do work for a redemption of the share, could be delayed to the next open day, redemption price for the next opening price.

    25th large redemption of open-end funds and extension handle, Fund Manager should be by mail, fax or other way of prospectus requirements, give the Fund share holders in three trading days, on the approach, at the same time specified shall be published on the newspapers and other media.

    26th series of large redemption of open-end funds, fund managers can be as stipulated in the contract and prospectus of the Fund to suspend accepting applications for redemption; has accepted the redemption application can delay the payment of redemption money, but delay period shall not exceed 20 working days and shall specify shall be published on the newspapers and other media.

    27th open fund the Fund contract may stipulate, a single fund share holders in a single day to apply for redemption of fund units over total share a certain percentage of the funds, fund managers may be suspended in accordance with the provisions of the present article 26th accept redemption application or delay payment.

    28th open funds should keep 5% not less than the net asset value of the Fund in cash or Government bonds maturity within a year, and for the payment of redemption money Fund share holders, but except for the Special Fund provided by the CSRC.

    Fourth chapter funds and income distribution

    29th the Fund contract and fund prospectus shall, in accordance with the following provisions set out the Fund's category:

    (A) 60% per cent of the Fund's assets invested in equities, equity funds;

    (B) 80% per cent of the Fund's assets invested in bonds and bond funds;

    (C) only invest in money market instruments, money market funds;

    (D) invest in stocks, bonds and money market instruments, and the proportion of equity investments and debt investments are not subject to subsection (a), (b) provide, for mixed funds;

    (E) other fund categories prescribed by the CSRC.

    30th article, fund name investment, should be more than 80% of contents of non-cash assets belonging to the Fund investment direction.

    31st for securities investment fund managers to use Fund assets shall not be any of the following circumstances:

    (A) a fund holds shares of a public company, whose market value of more than 10% of the net asset value of the Fund;

    (B) the same fund managers of all Fund holdings of securities issued by a company, more than 10% of the securities;

    (C) participate in the share issue to fund property purchase, fund the excess of the amount declared by the Fund's total assets, funds alone exceeds the number of shares to be issued stock declared by the the total number of issued shares of the company;

    (D) the breach of contracts on investments of the Fund, the proportion of investment strategies and investment agreement;

    (E) other circumstances prohibited by the CSRC.

    Full compliance with the relevant indexes can constitute a proportion of stock investment fund products not subject to the preceding paragraph (a), (b) the ratio limit.

    32nd the Fund Manager shall fund the Fund within six months after the effective date of the contract portfolio in line with the relevant Fund contracts agreed.

    Article 33rd due to fluctuation in the stock market and listed company mergers, fund the scale factors in addition to funds under the management of the investments of the Fund does not comply with the first paragraph of article 31st (a), (b) the prescribed percentage or proportion of contracted investment of the Fund, the Fund Manager shall, within ten days to adjust.

    34th article of the following costs associated with Fund from the Fund assets would be covered by:

    (A) the management fee of the Fund Manager;

    (B) the custodian custodian fee;

    (C) the Fund information disclosure costs after the entry into force of the contract;

    (D) after the entry into force of the Fund contract accounting costs and Attorney's fees;

    (E) the Fund share holders General Assembly costs;

    (F) the securities of the Fund transaction costs;

    (VII) in accordance with the relevant provisions of the State and the Fund contract, can fund assets were charged to other expenses.

    Article 35th of closed-end fund income distribution, not less than once a year, closed-end funds annual allocation ratio shall not be less than the annual earnings of 90%.

    Mutual fund distribution contract shall stipulate the annual income of the Fund of funds is the maximum number of minimum proportion of income and fund allocation.

    Article 36th Fund, allocation shall be made in cash.

    Open-end fund the Fund share holders can choose the allocation of cash receipts in advance and agreed upon in the contract for purchase of fund units of the Fund to fund share holder without having to make a choice of fund units, fund managers should be paid in cash.

    The fifth chapter funds share holders General Assembly

    37th article, except the securities investment fund law the 71st article (a) to (e) of things, the Fund contract shall also be in accordance with the provisions of the China Securities Regulatory Commission, rights and obligations of the parties agreed to fund contract to have a significant impact, shall convene a general meeting of the holders of fund units to change the contract, among other matters. Article 38th Fund Trustees considered it necessary to convene the Fund share holders meeting should submit written proposals to the Fund Manager.

    The Fund Manager shall receive a written offer within 10th of deciding whether to convene, and shall inform the trustee of the Fund.

    Fund managers decide to convene, it shall issue a written decision within 60 days from the date of the convening; fund managers decided not to summon, fund trustees still considered necessary, should be allowed to convene. 39th represents shares 10% per cent of the funds of the Fund share holders felt the need of convening the general meeting of the holders of fund units, written proposal should be submitted to the Fund Manager.

    The Fund Manager shall receive a written offer within 10th of deciding whether to convene, share holders of the Fund proposal and shall inform the representatives and Trustees of the Fund.

    Fund managers decide to convene, shall issue a written decision within 60 days from the date held Fund Manager decided not to convene, on behalf of the fund shares 10% per cent of the Fund share holders are still considered it necessary to convene should be to the trustee of the Fund to submit written proposals.

    Fund Trustees shall from the date of receipt of the written proposal decide whether to convene in the 10th, proposal and shall inform the Fund share holders representatives and managers; convened by the custodian of the Fund shall issue a written decision within 60 days from the date of the convening.

    40th fund managers and fund trustees do not convene the general meeting of the holders of fund units, Fund share holders in accordance with the 72nd of the securities investment fund law provisions of the second paragraph of article itself convened general meeting of the holders of fund units.

    The Fund share holders convened general meeting of the holders of fund units on their own, should be at least 30th to the China Securities Regulatory Commission for the record.

    41st the Fund share holders themselves convene the general meeting of the holders of fund units according to law, and trustee of the Fund Manager, the Fund shall cooperate with and shall not obstruct, interfere.

    The 42nd General meeting of the holders of fund units in accordance with the Securities Investment Fund Law article 75th vote matters Convenor shall, from the date of the adoption in the 5th with CSRC approval or for the record.

    Share holders as decided by the Assembly of the Fund from the CSRC approved or issued without a dissenting opinion from the date of entry into force.

    Article 43rd Fund Manager, the Fund and the Fund share holders should be executed decisions of the general meeting of the holders of fund units.

    The sixth regulatory and legal liability

    44th open-end Fund of funds after the entry into force of the contract, the Fund share holders number less than 200 or worth less than 50 million yuan of Fund assets, the Fund Manager shall promptly report to the CSRC; 20 consecutive working days in the foregoing circumstances, the Fund Manager shall explain the reasons and submit solutions to the CSRC.

    45th the CSRC and its agencies to fund managers, fund trustees to engage in operational activities of the Fund undertake periodic or irregular inspection and shall cooperate with the Fund Manager, the Fund trustee.

    46th article fund management people, and fund managed people violation legal, and administrative regulations and this approach provides of, China SFC and sent institutions can ordered rectification, suspended handle related business; on directly is responsible for of competent personnel and other directly responsibility personnel, can take regulatory talk, and issued warning letter, and remember into integrity archives, and suspended perform positions, and finds for not suitable served as related positions who, administrative regulatory measures.

    47th fund managers, Fund custodians and their supervisor directly responsible for personnel and other persons directly responsible for violations of these rules in operational activities of the Fund, the China Securities Regulatory Commission in accordance with the laws and administrative regulations of the administrative punishment; does not so stipulate laws and administrative regulations, administrative penalties in accordance with the regulations; a suspected crime, transferred to the judicial organs according to law, investigation of his criminal responsibility.

    48th Fund Manager who contravenes the provisions of article 18th, in addition to the Fund contract date or time for the subscription and redemption of fund units, or conversion, 89th in accordance with the securities investment fund law provisions.

    49th Fund Manager who contravenes the provisions of article 31st, used for securities investment fund assets, according to the Securities Investment Fund Law 90th section punishment.

    50th fund management and custodian of the Fund in accordance with this article 38th, 39th of Fund share holders convened the General Assembly, in accordance with the 95th of the securities investment fund law provisions of the.

    51st applications for fund managers to raise funds to conceal relevant information or provide false materials, the China Securities Regulatory Commission was inadmissible; has been accepted, rejected, and a warning.

    52nd fund managers engaged in operational activities of the Fund, any of the following circumstances shall be ordered to correct, simply or and a warning, fines directly responsible and other persons directly responsible, separately or concurrently warning, fine:

    (A) is not calculated in accordance with the provisions of the present article 17th of fund units subscription and redemption prices;

    (B) is not in accordance with the provisions of the present article 20th confirmed the validity of the subscription and redemption, and the payment of redemption money;

    (C) in accordance with the provisions of the second paragraph of this article 23rd redemption applications;

    (D) is not in accordance with the provisions of article 28th of this approach to keep cash or Government bonds;

    (E) is not in accordance with the provisions of the present article 33rd adjust proportion;

    (Vi) not in accordance with the provisions of the present article 35th, 36th, income distribution;

    (VII) not in accordance with the provisions of the present article 44th report, description of the situation, or to submit solutions.

    53rd trustee of the Fund Manager, the Fund has one of the following circumstances shall be ordered to correct, simply or and a warning, fines directly responsible and other persons directly responsible, separately or concurrently warning, fine:

    (A) is not in accordance with the 41st is aligned with these measures the Fund share holders convened general meeting of the holders of fund units;

    (B) is not in accordance with the provisions of the present article 42nd for approval or for the record matters decided by the general meeting of the holders of fund units;

    (C) is not in accordance with the provisions of the present article 43rd General Conference the entry into force of the Fund share holders;

    (D) is not in accordance with the provisions of the present article 45th cooperate with the China Securities Regulatory Commission and its agencies to check.

    The seventh chapter by-laws 54th these measures come into force on July 1, 2004.