Fund Management Company-Specific Business Approach To Customer Asset Management

Original Language Title: 基金管理公司特定客户资产管理业务试点办法

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Read the untranslated law here: http://www.chinalaw.gov.cn/article/fgkd/xfg/gwybmgz/201112/20111200359099.shtml

Fund management company-specific business approach to customer asset management

    (August 25, 2011 74th, China Securities Regulatory Commission announced as of October 1, 2011) Chapter I General provisions

    First in order to regulate specific customer asset management business of fund management companies (hereinafter referred to as specific asset management business), protect the legitimate rights and interests of the parties, in accordance with the People's Republic of China Law on securities investment funds (hereinafter referred to as the law on securities investment funds) and related laws and regulations, these measures are formulated.

    Second fund management companies to specific customers to raise money or accept appointed as asset manager of property of a particular customer, trustee of the assets held by commercial banks, for the interests of the assets, the principal activities in securities investment property, these measures shall apply.

    Article in the specific asset management business should follow the principle of voluntariness, fairness, integrity, standards, maintain normal order in the market, protect the legitimate rights and interests of all parties, and prohibit various forms of tunneling.

    Asset management, asset custodian should abide by the responsibilities, performance, careful due diligence obligations of good faith, equal treatment for all investors.

    Assets the client shall ensure that legitimate sources of, and must not harm national, social and public interests and the legitimate rights and interests of others. Article fourth fund management companies in the specific asset management business, entrusted assets independent of the inherent property of asset management and asset custodian and independent asset managers and other property assets of managed hosting.

    Asset Manager, asset custodian shall not be entrusted assets into his own property.

    Asset management, asset custodian entrust property management, property and proceeds derived from the use or any other use classified to trusted assets.

    Asset management, asset custodian dissolved, is revoked or declared bankruptcy, liquidation, entrusted assets do not belong to the assets to be liquidated.

    Fifth, China Securities Regulatory Commission (hereinafter referred to as the China Securities Regulatory Commission) in accordance with the provisions of laws and administrative rules and regulations and these rules, to supervise and administer the specific asset management business.

    Sixth securities and futures exchanges in accordance with the laws, administrative regulations and these regulations, for a specific asset management, futures trading in securities supervision.

    Chapter II business specifications

    Article seventh fund management companies in the specific asset management business, may take the following forms:

    (A) for a single customer for specific asset management business;

    (B) to specific customers for specific asset management business.

    Article meets the following conditions the Fund management company approved by the China Securities Regulatory Commission, you can carry out specific asset management business:

    (A) the business code of conduct and no violation in the last 1 year subject to administrative penalties or regulators to order the rectification, no regulator investigations for violations;

    (B) have been equipped with appropriate professionals engaged in specific asset management business;

    (C) the violation has to prevent tunneling, promised Returns or bear losses, such as unfair competition conduct of business rules and measures;

    (D) has established fair trade management system, clear and fair trade principles, contents and specific measures to achieve fair trade;

    (E) effective investment monitoring system and reporting system has been established, the ability to detect unusual transactions;

    (Vi) other conditions set by CSRC based on prudent regulatory principles.

    Nineth as a single customer for specific asset management business, commissioned the initial assets of no less than 30 million Yuan, except otherwise stipulated by the CSRC.

    Tenth for multiple clients for a specific asset management business, the Fund management company shall meet the requirements of specific customers selling a specific number of client asset management plan (hereinafter referred to as the asset management plan).

    Specific customers that meet the conditions referred to in the preceding paragraph refers to a single asset management investment plans to the initial amount of not less than 1 million Yuan, and be able to identify, determine and bear the investment risk of the natural persons, legal persons or other organizations established according to law or approved by the China Securities Regulatory Commission a specific customer.

    11th Fund management company for multiple clients for specific asset management business, a single number of client asset management plan shall not exceed 200 people, commissioned the initial assets total no less than 30 million Yuan, the China Securities Regulatory Commission except as otherwise provided. Asset management plan should be set to an equal share.

    Unless otherwise agreed in the asset management contract, each plan shares shall have the same legal rights.

    12th fund management companies in the specific asset management business, entrusted assets be handed over to the Fund should be managed managed qualified commercial banks.

    13th in the specific asset management business, asset trustee, Asset Manager asset management, asset custodians shall conclude a written contract expressly agreed their respective rights, obligations and related matters.

    Content and format of the asset management contract prescribed separately by the China Securities Regulatory Commission. 14th fund management company sales to a specific customer asset management plan shall prepare investment instructions.

    Investment instructions shall be true, accurate and complete, without any false record, misleading statement or material omission.

    Investment package should include the following:

    (A) survey of asset management plan;

    (B) the main contents of the asset management contract;

    (C) survey of asset management and asset custodian;

    (D) investment risk disclosure;

    (E) during the initial sale;

    (Vi) other matters prescribed by the CSRC.

    15th article for multiple customer handle specific assets management business of, fund management company in signed assets management contract Qian, should guarantee has sufficient time for assets delegate people review contract content, and on assets delegate people funds capacity, and financial investment experience and investment purpose for full understand, making customer information table and related proved material retained reference, and should assigned hand on assets management plans to assets delegate people made detailed description.

    16th Asset Manager, asset custodian shall fully disclose in the asset management contract management, principal investment property may face risks, assets fully understand the rights and duties of man, willing to bear the investment risk.

    17th the Fund management company can sell the asset management plan, or entrust the Fund sales institutions selling assets management program. 18th for multiple clients for a specific asset management business, the Fund management company shall, within the time limit stipulated in the investment manual sales asset management plan.

    Expiry of the initial sale and satisfy the conditions laid down in article 11th, the Fund management company shall, from the date of expiry of the initial sales hire a legal capital verification institution verification within the 10th and from the date of receipt of the verification report in the 10th, verification reports to the CSRC, and customer tables, go through the relevant formalities.

    19th for multiple clients for a specific asset management business, asset managers, sales office shall be qualified fund managed commercial banks opened accounts related to the sales and asset management plan, and supervision by the funds in the bank accounts.

    Asset managers should be asset management plans during the initial sales of clients ' funds in a special account, in asset management plan before the end of the initial sale, a person shall not be used.

    Article 20th asset management plan the initial sale period, does not meet the conditions laid down in article 11th, the Fund management company shall bear liabilities as follows:

    (A) to his inherent property responsible for the initial sale and debt and costs;

    (B) returned in the 30th after the expiry of the initial sales customer has made the payment, plus the interest on bank deposits.

    21st entrusted assets should be used for the following investments:

    (A) shares, bonds, investment funds, Central Bank bills, short-term, asset-backed securities, derivatives, commodities and Futures;

    (B) other investments prescribed by the CSRC.

    22nd the Fund management company is engaged in a specific asset management business, entrusted assets portfolio should meet the laws and regulations and relevant regulations of the China Securities Regulatory Commission; stock issued when purchasing, declared by individual portfolio shall not exceed the amount of the total assets of the portfolio, individual portfolio shall not exceed the number of shares to be issued stock declared by the the total number of issued shares of the company.

    A single asset management plans to hold shares in a listed company, whose market value must not exceed 20% of the net asset value of the scheme; the same asset manager manage all client-specific property (including single-customer and customer-specific asset management business) investment in securities issued by a company, shall not exceed the stock 10%.

    Entirely in accordance with the relevant index ratio portfolio asset management plan is not subject to limit provided for in the preceding paragraph.

    Article 23rd according to stock market fluctuations, companies merge, change in the scale of asset management plans and other factors in addition to asset management asset management plans to invest not in conformity with the provisions of article 22nd or the investment proportion of the asset management contract, asset manager should complete adjustments within 10 trading days.

    Article 24th asset management contract duration asset manager according to the terms of the contract, go through specific customer engagement and exit the asset management plan procedures and resulting reasonable costs can be borne by the assets.

    Asset management plan the plan up to open a quarterly share of participation and exit, except as otherwise provided by the China Securities Regulatory Commission.

    25th article of the asset management plan share registration, the asset manager is responsible for processing; asset management may be entrusted to another body to handle.

    26th engaged in specific asset management, asset management, asset management and assets the client shall, in accordance with the provisions of laws and regulations, the China Securities Regulatory Commission, perform with a particular asset management business on information reporting and disclosure obligations.
27th special management of the asset management business rates, managed rate shall not be less than the same type or similar types of investment objectives and investment strategies of securities investment fund management fees, custody rates 60%.

    Asset Manager with assets of delegate conventions, according to delegate administration of the property of extracting appropriate performance pay. During the investment period, the percentage of performance fees shall not exceed the net assets under management in the period of 20%.

    Fixed management fees and performance fees can be collected in parallel.

    28th assets in the asset management contract before the conclusion, to asset managers should be fully informed of their investment objective, investment preferences, investment restrictions and risk tolerances and other basic information, as well as funding and asset sources of legitimacy of special and written commitments.

    Asset client assets, should take the initiative to understand the risk-return characteristics of the investment, and meet the requirements of its business decision making process. Article 29th assets the client shall comply with laws and regulations and the relevant provisions of the measures, asset management contract signed by a prudent and serious manner, and faithful implementation of the asset management contract obligations.

    During the trust period, shall not be any of the following acts:

    (A) concealing facts or providing false information;

    (B) delegate source inappropriate assets engaged in money-laundering activities;

    (C) to provide asset management or ask for commercial bribery;

    (D) asset management has breached the undertaking requested benefits;

    (E) require the asset manager remission or return of management fees;

    (Vi) require asset managers use other assets to assets under management clients gain unfair advantage;

    (G) require asset management in the securities underwriting, securities investment and other business activities provided with;

    (VIII) violation of asset management asset management investment contract interference;

    (IX) engage in any act prejudicial to other asset managers assets other assets, assets managed people who managed the activities of legitimate rights and interests;

    (J) the laws, regulations and other acts prohibited by the China Securities Regulatory Commission.

    Article 30th asset managers should understand the customer's risk appetite, risk awareness and capacity assessment of the customer's financial situation, explain to the customer that relevant laws and regulations and relevant investment market and its mode of operation, fully disclose the risks.

    31st asset managers and asset custodian shall, in accordance with the relevant provisions of the China Securities Regulatory Commission, entrusted assets opened specifically for the investment management of the securities accounts and futures accounts and financial accounts, to apply for business registration, settlement.

    Fund management companies should be fair treatment of different assets under management, establishment of an effective system of routine monitoring of unusual transactions, to transactions occurring between different portfolios and trades (including trading hours, trading prices, number of deals, trading grounds etc) monitors and regularly reports to the CSRC.

    Strictly prohibited within the same portfolio in the same trading day reverse transactions and tunneling and other unfair trade practices.

    32nd the Fund management company shall take the initiative to avoid a possible conflict of interest, for asset management contracts, transactions or there may be a conflict of interest, related party transactions should be described, and to report to the CSRC.

    Article 33rd engaged in specific asset management business of fund management companies should set up a special business unit, investment manager, fund managers and securities investment fund shall not be concurrently with each other.

    For specific asset management investment manager shall be submitted to the China Securities Regulatory Commission for the record.

    Article 34th engaged in specific asset management business of fund management companies shall not be any of the following acts:

    (A) use of other assets for a specific asset management clients seek illegitimate interests, interests of transportation;

    (B) the use of specific customer assets managed by any third parties other than for the client to seek illegitimate interests, interests of transportation;

    (C) in any way to the client return of assets management fees;

    (D) illegal to promise Returns or bear losses;

    (V) his own property or the property of others confused with entrusted assets to investments in securities;

    (F) violation of asset management of the contract, beyond the rights management, invest in securities;

    (VII) through newspapers, television, radio, Internet sites (except for fund management companies, sales agency website) and other public media to promote specific specific asset management business plan and asset management plan;

    (VIII) solicit or receive benefits outside of the specific asset management remuneration;

    (IX) engage in insider trading, manipulating trading prices of securities and other improper securities trading activities;

    (J) the laws, regulations and other acts prohibited by the China Securities Regulatory Commission.

    35th asset custodian found asset management investment instructions in violation of the law, administrative regulations and other related regulations, or violation of the asset management contract, should refuse to implement, immediately notify the clients and asset manager and asset reports to the CSRC in a timely manner.

    Asset custodian discovered asset management investment instructions pursuant to procedures already in force in violation of the law, administrative regulations and other related regulations, or violation of the asset management contract, it shall immediately inform the asset management and asset clients and report to the CSRC.

    Chapter III supervision and management Article 36th as a single customer for specific asset management business, asset manager shall, within 5 working days between CSRC record asset management contract.

    The asset management contract in any form be changed, supplemented, asset manager should be changed or supplemented within 5 working days from the date of occurrence of the China Securities Regulatory Commission for the record. 37th for multiple clients for a specific asset management business, asset managers should sell some asset management plan asset management contract before the draft, draft investment brochures, marketing programs and other material required by the China Securities Regulatory Commission, China Securities Regulatory Commission records. The China Securities Regulatory Commission since receiving the complete filing within 10 working days from the date of registration.

    Registration is completed, the Fund management company to start selling the asset management plan.

    Asset management contract, investment in the draft specification draft, marketing programs and other material does not comply with the relevant provisions of laws and regulations, the Fund management company shall, according to the China Securities Regulatory Commission made modifications, and go through the registration formalities. Contracts 38th asset management shall, in accordance with asset management agreement, prepare and report to the delegate submit property investment assets, entrusted assets during the reporting period the investment operations of explain.

    The report should be reviewed by asset custodians, and issue a written opinion. 39th Asset Manager, asset custodians shall ensure clients of its assets in accordance with asset management contract time and access to trusted assets investments operated, managed, and so on.

    Asset management contract, possibly when major matters affecting the interests of clients, asset management, client shall promptly inform the asset. 40th fund management companies should be an analysis of the management of securities investment funds and portfolio performance of entrusted property.

    During the investment period, if the investment objectives and investment strategies similar to securities investment funds and entrusted assets portfolio has obvious performance gaps between, you should issue a written report, investment manager, Inspector General reported that the China Securities Regulatory Commission for the record after the signing, General Manager, respectively. 41st fund management company shall, within 15 working days from the date of the end of each quarter, accomplishing a specific asset management quarterly report, and submitted to the China Securities Regulatory Commission for the record.

    Specific asset management quarterly report should be a fair trading system implementation and the specific asset management business of securities investment funds performance evaluation, exceptions, special description for trading, and signed by the investment manager, Inspector, General Manager, respectively.

    Asset Manager, asset custodian shall, within 3 months from the date of the end of each year, accomplishing a specific asset management managing and hosting the annual report an annual report, and reported that the China Securities Regulatory Commission for the record.

    42nd asset management, asset custodian shall, in accordance with laws, administrative regulations and the relevant regulations of the China Securities Regulatory Commission, all accounting information to save a specific asset management business, and to keep the relevant contracts, agreements, transactions, and other documents and materials.

    Article 43rd securities and futures exchanges should be managing the same fund management companies, securities investment funds related to entrusted property portfolio with strict monitoring of unusual transactions Act, and shall promptly report to the CSRC.

    The fourth chapter legal liability

    44th article assets management people, and assets managed people violation legal, and administrative regulations and the this approach provides of, China SFC and sent institutions on its take ordered corrected, and suspended handle related business, administrative regulatory measures; on directly is responsible for of competent personnel and other directly responsibility personnel, take regulatory talk, and issued warning letter, and suspended perform positions, and finds for not suitable served as related positions who, administrative regulatory measures.

    Article 45th of the asset management, asset custodian and directly in charge of personnel and other persons directly responsible for violations of these rules in the specific asset management business, the China Securities Regulatory Commission administrative penalties in accordance with this approach; otherwise stipulated by laws, administrative regulations, in accordance with the relevant provisions of the administrative punishment; a suspected crime, transferred to the judicial organs according to law, investigation of his criminal responsibility.
46th article assets management people, and assets managed people violation this approach 27th article of provides extraction management fee and managed fee of, ordered corrected, single at or and at warning, and fine; plot serious of, ordered suspended handle related business; on directly is responsible for of competent personnel and other directly responsibility personnel, single at or and at warning, and fine; plot serious of, according to about provides, take securities market ban into measures.

    47th article assets management people, and assets managed people violation this approach 34th article subsection (a) items of provides, using its by management, and managed of securities investment fund for specific of assets delegate people seek not due interests, and for interests conveying of, in accordance with securities investment fund method 89th article of provides punishment; assets management people, and assets managed people violation this approach 34th article subsection (a) items of provides, using its by management, and managed of securities investment fund zhiwai of assets for specific of assets delegate people seek not due interests, and

    Tunneling, correction, single and a fine or warning, serious, order suspending relevant business; directly responsible and other persons directly responsible, separately or concurrently warning, fines are serious, in accordance with relevant regulations, securities market into the measures taken.

    48th, asset management, asset trustee with any of the following circumstances shall be ordered to correct, simply or and subject to a warning, serious, order suspending relevant business; directly responsible and other persons directly responsible, separately or concurrently warning, fines are serious, in accordance with relevant regulations, securities market into the measures taken:

    (A) in violation of the provisions of the present article eighth, without the approval of the China Securities Regulatory Commission changes its scope of business, engaged in specific asset management, custody services without authorization;

    (B) is not in accordance with the provisions of the present article tenth sales asset management plan to meet the conditions of a specific customer;

    (C) is not in accordance with the provisions of the present article 12th principal managed property to the asset custodian;

    (D) is not in accordance with the provisions of the present article 14th preparation of investment instruction;

    (E) violations of the provisions of the article 21st, 22nd, and beyond the scope of investment and investment restrictions;

    (Vi) not in accordance with the provisions of this article 23rd adjust proportions;

    (VII) not in accordance with the provisions of the present article 31st of equitable treatment of all kinds of assets under management;

    (VIII) violation of the provisions of the present article 33rd, investment fund managers and securities investment fund managers concurrently with each other;

    (I) in violation of this article 34th (b) to (j) provisions;

    (10) not in accordance with this article 18th, 36th, 37th, provisions of filing procedures.

    49th assets violates the article 28th, 29th article shall be ordered to correct, simply or and a warning, fines directly responsible and other persons directly responsible, separately or concurrently warning, fine.

    50th article for specific assets management business issued audit report, and legal submissions, file of professional institutions not diligent due diligence, by making, and issued of file has false records, and misleading sex statement or major missed of, ordered corrected, single at or and at warning, and fine; on directly is responsible for of competent personnel and other directly responsibility personnel, single at or and at warning, and fine; plot serious of, according to about provides, take securities market ban into measures.

    The fifth chapter by-laws 51st article of the rules take effect on October 1, 2011. Fund management company specific customer assets management business pilot approach (SFC makes 51st,), and on implementation straddling fund management company specific customer assets management business pilot approach about problem of notification (card prison Fund word [2007]326,), and on fund management company carried out specific multiple customer assets management business about problem of provides (SFC announcement [2009]10,) while abolition.