Administrative Measures On Sales Of Securities Investment Fund

Original Language Title: 证券投资基金销售管理办法

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Read the untranslated law here: http://www.chinalaw.gov.cn/article/fgkd/xfg/gwybmgz/201109/20110900349566.shtml

Administrative measures on sales of securities investment fund

    (June 9, 2011 72nd of China Securities Regulatory Commission announced as of October 1, 2011) Chapter I General provisions

    First in order to regulate the sale of securities investment funds, and promote the healthy development of the securities investment fund market, according to the securities investment fund law, the securities law and other related laws and regulations, these measures are formulated.

Article referred to securities investment funds (hereinafter funds) sales, including sales promotion fund, the Fund for the sale of fund shares, any activity such as subscription and redemption of fund units.

Fund sales institutions mean fund managers as well as by the China Securities Regulatory Commission (hereinafter referred to as the China Securities Regulatory Commission) identified other institutions. Fund sales institutions regarding their involvement in fund sales business link in the application of this approach.

    Fund sales-related institutions, including the Fund sales institutions providing payment and settlement services, Fund sales settlement fund supervision, registration services and fund sales business-related service providers.

    Third fund sales institutions engaging in fund sales activities shall abide by the laws and regulations and the provisions of the CSRC and must not harm national interests, public interests and the legitimate rights and interests of the fund investors.

    Article fourth Fund sales institutions engaging in fund sales activities shall abide by the Fund contract and fund sales agreement, the Parties shall, following the principles of openness, fairness, impartiality, honesty and trustworthiness, diligence, abide by professional ethics and codes of conduct. Article fifth Fund sales settlement fund is a fund investor's trading settlement funds, involving the sale special settlement account opening, funds Fund sales and supervisory agencies shall not be settlement funds into its own assets. No unit or individual is prohibited any form of misappropriation of funds settlement funds.

Related institutions going bankrupt or liquidation, funds settlement funds do not belong to the estate or the liquidation of property.

    Fund sales settlement fund is a fund sales institutions, Fund sales, payment and settlement institution or fund sales-related institutions, including institutions for registration of the Fund collection, Fund settlement account and Fund custody account transfers between funds purchase (subscription), redemption, cash dividend funds.

    Article sixth of China Securities Regulatory Commission and its agencies in accordance with the laws and regulations, supervision and management of Fund sales activities.

Article seventh according to the laws and regulations of the Fund Industry Association and self-regulatory rules for disciplined management of Fund sales activities, and qualification for Fund sales.

    Fund sales institutions and fund sales institutions shall join the Fund Industry Association, Association of industry self-regulation.

    Chapter II Fund sales institutions Eighth Fund Manager may handle the sales to raise funds.

    Commercial banks (including foreign legal-person banks in China, the same below), securities companies, securities investment advisory institutions, independent sales organizations, as well as other bodies prescribed by the CSRC to the China Securities Regulatory Commission application for fund distribution business qualifications.

Nineth commercial banks, securities companies, securities investment advisory institutions, independent sales organizations, as well as other bodies prescribed by the CSRC application for fund distribution business qualifications shall satisfy the following conditions:

(A) has a sound corporate governance, improve internal control and risk management systems and effective implementation;

(B) the financial condition and operation stability;

(C) compatible with the sales operations of the Fund business premises, safety precaution facilities and other facilities;

(D) the safe and efficient handling of funds available for sale, purchase and redemption and other technical facilities of the business, and in accordance with the China Securities Regulatory Commission on relevant requirements of Fund sales business information management platform and technology systems Fund sales business with the Fund Manager, China Securities Depository and Clearing Corporation's technical systems were networked test, test results are consistent with the State standards;

(E) developed a complete settlement process, financial management in line with the China Securities Regulatory Commission on relevant requirements of Fund sales settlement fund management;

(F) evaluation of fund investor risk tolerance and fund risk rating methodology;

(G) developed a complete business process, sales practice and conduct, emergency measures of Fund sales business management system, with the China Securities Regulatory Commission to fund sales internal control requirements;

(H) to comply with legal and regulatory requirements of the anti-money laundering internal control system;

    (IX) other conditions stipulated by the CSRC.

Article tenth commercial banks ' application for fund distribution business qualifications, in addition to the provisions of article Nineth conditions, shall meet the following conditions:

(A) the capital ratios in line with relevant provisions of the banking regulatory agency of the State Council;

(B) has a dedicated Department responsible for sales operations of the Fund;

(C) in the last three years is not subject to administrative punishments or criminal penalty;

    (Four) company is responsible for Fund sales business of sector made Fund practitioners qualification of personnel not below the sector employees number of 1/2, is responsible for Fund sales business of sector management personnel made Fund practitioners qualification, familiar Fund sales business, and has engaged in fund business 2 years above or in other financial related institutions 5 years above of work experience; company main branch institutions Fund sales business head are has made Fund practitioners qualification.

11th securities company application for fund distribution business qualifications, in addition to the provisions of article Nineth conditions, shall meet the following conditions:

(A) has a dedicated Department responsible for sales operations of the Fund;

(B) the net capital and financial risk control indicators in line with relevant regulations of the China Securities Regulatory Commission;

(C) the last two years do not have embezzled clients ' assets such as clients ' interest;

(D) no regulators for violations investigations or in rectification period, within the last three years is not subject to administrative punishments or criminal penalty;

(E) not happened has affected or may affect the normal operation of the company's major changes, or other important matters such as litigation and arbitration;

    (Six) company is responsible for Fund sales business of sector made Fund practitioners qualification of personnel not below the sector employees number of 1/2, is responsible for Fund sales business of sector management personnel made Fund practitioners qualification, familiar Fund sales business, and has engaged in fund business 2 years above or in other financial related institutions 5 years above of work experience; company main branch institutions Fund sales business head are has made Fund practitioners qualification.

12th securities investment consultation institutions to apply for fund distribution business qualifications, in addition to the provisions of article Nineth conditions, shall meet the following conditions:

(A) has a dedicated Department responsible for sales operations of the Fund;

(B) not less than 20 million yuan of registered capital and paid-up capital must be;

(C) senior management of the company responsible for the Fund distribution business qualifications for funds has been made, familiar with the sales operations of the Fund, and have engaged in the operations of the Fund for more than 2 years or other financial institutions for more than 5 years of working experience;

(D) engaged in securities investing consulting business more than 3 full fiscal years;

(E) the last three years investors engaged in securities trading act;

(F) no regulator investigations for violations, or is in a corrective period; in the last three years is not subject to administrative punishments or criminal penalty;

(VII) not happened has affected or may affect the normal operation of the company's major changes, or other important matters such as litigation and arbitration;

    (Eight) company is responsible for Fund sales business of sector made Fund practitioners qualification of personnel not below the sector employees number of 1/2, is responsible for Fund sales business of sector management personnel made Fund practitioners qualification, familiar Fund sales business, and has engaged in fund business 2 years above or other financial related institutions 5 years above of work experience; company main branch institutions Fund sales business head are has made Fund practitioners qualification.

13th separate fund sales institutions specializing in fund sales and other financial products, their application for fund distribution business qualifications, in addition to the provisions of article Nineth conditions, shall meet the following conditions:

(A) shall be a limited liability company, partnership or any other form meet the requirements of the China Securities Regulatory Commission;

(B) the eligible organization name, organization and business scope;

(C) not less than RMB 20 million Yuan registered capital or investment, and must be paid in cash;

(D) the limited liability company, or partner of the partnership in accordance with the regulations;

(E) not have affected, or may affect the normal operation of the Agency significant changes, or other important matters such as litigation and arbitration;

(F) senior management personnel professional qualifications for the Fund had been made, familiar with the sales operations of the Fund, and have engaged in the operations of the Fund for more than 2 years or other financial institutions for more than 5 years of working experience;

    (VII) personnel qualification obtained funds of no less than 10 people.

14th separate fund sales institutions to set up in the form of a limited liability company, whose shareholders are enterprise legal persons or natural persons.

Enterprise legal person shares of the independent fund sales institutions shall satisfy the following conditions:

(A) continue to operate more than 3 full fiscal year, financial condition, operation stability;

(B) in the past three years is not subject to criminal penalties;

(C) the last three years were not affected by financial regulation, supervision, industry and commerce, taxation and other administrative departments administrative penalties;

(Iv) self-regulation over the last three years, commercial banks and other institutions have no adverse record;

(E) no regulator for violation of investigation or during the rectification.

Natural person shares an independent fund sales institutions shall satisfy the following conditions:

(A) engaging in securities, funds or any other financial business for more than 10 years, or securities, Fund for more than 5 years of business management or securities, senior managers in the fund industry for more than 3 years working experience;

(B) in the past three years is not subject to criminal penalties;

(C) the last three years were not affected by financial regulation, supervision, industry and commerce, taxation and other administrative departments administrative penalties;

(D) no record in any discipline management, commercial banks and other institutions;

(E) the large amount of overdue debt-free;

    (F) no other significant adverse credit records during the last three years.

15th separate fund sales institutions in the form of partnerships established, the partners shall meet the following requirements:
(A) engaging in securities, funds or any other financial business for more than 10 years, or securities, Fund for more than 5 years of business management or securities, senior managers in the fund industry for more than 3 years working experience;

(B) in the past three years is not subject to criminal penalties;

(C) the last three years were not affected by financial supervision, industry and commerce, taxation and other administrative departments administrative penalties;

(D) no record in any discipline management, commercial banks and other institutions;

(E) the large amount of overdue debt-free;

    (F) no other significant adverse credit records during the last three years.

16th eligibility criteria for Fund sales institutions shall submit application materials in accordance with the China Securities Regulatory Commission.

    Applications involve significant changes in the matter of the application materials, the applicant shall, within 5 working days from the date of change submitted to the China Securities Regulatory Commission updates.

    17th the CSRC in accordance with the provisions of the administrative licensing law, accept an application for eligibility for Fund sales business, and review, make a decision.

Article 18th must apply for business registration, the applicant shall, upon receipt of the approval documents to the administrative organ for industry and commerce in accordance with the relevant provisions of alteration registration procedures.

    Independent sales organizations of the Fund to the administrative authorities for industry and Commerce after change of business scope of registration in order to open a special account fund sales and settlement.

19th separate fund sales institutions applying for establishing a branch shall satisfy the following conditions:

(A) good internal control, stability, good sustainable business capacity, can effectively control the branch risk;

(B) within the last year is not subject to administrative punishments or criminal penalty;

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

(D) branches are in conformity with the provisions of the proposed name, Office space, business officers, security facilities, and other business-related facilities;

(E) the proposed branch has a clear responsibility and sound management systems;

(F) the proposed branch Fund made not less than 2 qualified personnel;

(VII) other conditions stipulated by the CSRC.

    Independent sales organizations application for fund distribution business qualifications of the Fund has established branches, shall comply with the above conditions. 20th independent fund sales institutions to set up branches, change of business scope, the registered capital or investment, shareholder or partner, senior managers, should change before the change programme reported that the China Securities Regulatory Commission for the record.

Independent fund sales personnel qualifications operators during the funds of less than 10 people should be reported to the CSRC in within 5 working days, and staff within 30 working days adjusted to requirements. Independent fund sales institutions in accordance with the provisions of the preceding paragraph after the filing, the China Securities Regulatory Commission under way to 13th, 14th, 15th, 16th section continuous supervision.

    Do not meet Fund sales institutions qualifications a rectification, fails to rectify, cancel Fund sales business qualification.

    Article 21st Fund sales institutions Fund sales business qualifications, record basic information should be reported to the CSRC, will participate in fund sales branch (dot) basic information branch (dot) local agency of the China Securities Regulatory Commission for the record, and to be updated on a regular basis.

22nd merger Fund sales institutions, Fund sales business management qualifications in accordance with the following principles:

(A) the new Fund sales institutions merged, the new company should be based on the regulations application for fund distribution business qualifications, before the new company without fund distribution business qualifications, sales qualification part of the termination of the merger Fund, the new company is not to be made within 6 months of eligibility for Fund sales business, merger Fund sales business eligible to terminate;

(B) the Fund sales institutions merged and survivor are not be eligible for Fund sales business, acquired under these regulations shall be applied for fund distribution business qualifications, the survivor Fund sales made before the qualification, the merged party Fund sales business terminates, survivor is not achieved within 6 months eligibility for Fund sales business, the merged party Fund sales business eligible to terminate;

(C) the Fund sales institutions merged and the combined party does not have the qualifications of Fund sales business, Fund sales institutions shall in the merged party branch (dot) after meeting sales requirements of the Fund, according to the requirements of article 20th and 21st for the record, in accordance with the Fund sales information management systems integration platform requirements will report to the China Securities Regulatory Commission for the record;

(D) the Fund sales institutions merged, merged and the combined party shall be eligible for Fund sales business, merging parties shall fund sales information management systems integration platform requirements will report to the China Securities Regulatory Commission for the record;

(V) separation of Fund sales, the new company under these regulations shall be applied for fund distribution business qualifications.

    Sales qualification part of the termination of the Fund, Fund sales institutions can cancel, redeem, turn managed out of business, not to open an account, subscription or purchase services.

    Chapter funds settlement 23rd Fund sales institutions can select commercial banks or institutions engaged in fund sales on payment settlement business of payment.

    Fund sales, payment and settlement institutions should ensure that funds settlement funds safe, timely and efficient huafu.

Article 24th Fund sales institutions shall choose the following conditions of commercial banks or institutions engaged in fund sales on payment settlement business of payment: (A) the safe and efficient handling of payment settlement business information systems.

The information system should have a legitimate intellectual property rights, and networked with the cooperation agencies and regulators to complete the test, test results in accordance with the standards prescribed by the State;

(B) develop an effective risk control system;

    (C) other conditions stipulated by the CSRC.

25th engaging in fund sales of commercial banks on payment settlement business in addition to having these measures article 24th conditions, should also fund sales business qualifications. Payment and settlement services for Fund sales institutions of commercial banks should be based on commercial banks engaging in the price charged to costs associated with payment and settlement services.

    Beyond payment and settlement services fee on commercial bank, signed a sales agreement with Fund sales institutions, and sales-related services, Fund sales-related responsibilities.

    Article 26th engaged in fund sales except payment settlement business of payment institutions should have the way article 24th conditions, should also make the payments business license issued by the people's Bank of China, and fund sales on payment settlement business account and corporate account effectively isolated from other operations.

27th Fund sales institutions, Fund sales payment settlement agency, Fund registration of institutions may be eligible for Fund sales business commercial banks or customers ' transaction settlement funds depository designated commercial banks to open fund special account sales and settlement.

Fund sales institutions, Fund sales, payment and settlement institutions open funds, Fund registration registration authorities when selling special settlement account, account properties, account should be functional, account specific content, methods of supervision, account exception handling issues to oversee the agreement in the form of agreed sales and fund settlement fund oversight bodies.

Fund special account sales settlement refers to fund sales institutions, Fund sales payment and settlement institution or Fund Registration Agency for collection, staged sales settlement funds of the special account, transfer funds.

    Fund sales refers to the settlement fund oversight bodies in fund sales settlement funds transfer process of mutual fund sales institutions opened, used sales accounts of settlement funds and fund sales transfer process to assume oversight responsibilities of the Bank or the China Securities Depository and Clearing Corporation.

    28th Fund sales special settlement account opening, changing and revocation should be in accordance with the provisions of the CSRC and account opening is located the China Securities Regulatory Commission agency of record.

    29th the Fund sales institutions shall only funds to settlement account of fund investors as part of its purchase of the bank account.

    The fourth chapter Fund promotion materials

30th promotion materials of the Fund in these measures refers to promote funds for distribution to the public or to publish, so that the public can generally get written, electronic or other media of information, including:

(A) published material;

(B) leaflets, pamphlets, letters, fax, non-disclosure of specified information published in the media and fund sales-related announcements and other promotional materials for the public;

(C) posters, outdoor advertising;

(D) television, film, radio, Internet information, links to public Web site advertising, text messaging and other audio-visual and communications materials;

    (V) other materials prescribed by the CSRC.

31st promotion materials of the Fund Manager of the Fund, should be given by the Fund Manager is responsible for Fund sales Senior Manager and Inspector checks and issue compliance submissions, and distributed to the public or published within 5 working days from the date the Fund Manager operates mainly in activities where the China Securities Regulatory Commission agency of record.

    Other promotion materials of the Fund of Fund sales institutions shall first Fund sales institutions responsible for Fund sales business of senior executives and compliance checks, and issue compliance submissions, and distributed to the public or published within 5 working days of Fund sales institutions mainly engaged in activities where the China Securities Regulatory Commission agency of record.

    Article 32nd making promotion of the Fund the Fund sales institutions should be responsible for the content of the material, ensure the distribution to the public, published material and record the same material.

Article 33rd Fund promotion materials must be truthful, accurate, and consistent with the Fund contract and fund prospectus shall not be any of the following circumstances:

(A) any false record, misleading statements or material omissions;

(B) the forecast investment performance of the Fund;

(C) violations committed to gains or losses;

(Iv) slander other fund managers, Fund custodians or fund sales organization, or any other Fund Manager raising or management of the Fund;

(E) the exaggerated or biased propaganda funds, misuse of security, guarantees, promises, insurance, safety, security, high yield, risk-free may make investors think there is no risk or misleading marketing focus on marketing a time limit;

(F) the recommended text publishing units or individuals;

    (VII) other circumstances as stipulated by the CSRC.
Article 34th Fund promotion material can be posted to the Fund, the past performance of other funds managed by fund managers, but the Fund except for less than 6 months of the entry into force of the contract.

Promotion material posted in the past performance of the Fund shall comply with the following requirements:

(A) the Fund for more than 6 months but less than 1 year of the entry into force of the contract, should be published from the date on which the contract comes into effect performance;

(B) the Fund more than 1 year but less than 10 years of the entry into force of the contract, should start publishing contract has come into force when all the full fiscal year results, promotion materials released in the second half, also posted the first half of that year's performance;

(C) the Fund for more than 10 years of the entry into force of the contract, should be posted latest 10 complete fiscal year's performance;

    (D) performance posted in the Fund contract during investment objectives, investment and investment policy changes, should be specifically stated.

35th Fund promotion material is available to the Fund, the Fund managers managing other funds past performance, shall comply with the following requirements:

(A) in accordance with the relevant laws and regulations of regulations or industry-recognized criteria of fund performance data;

(B) references to statistical data and information shall be true, accurate, and to indicate the source, may not be invoked without verification, has not yet occurred or simulation data; To introduce simulated historical performance is needed, business fixed investment, China's securities market should be adopted or overseas representative of mature securities market index, its long enough to simulate the real rate of return in the past, also specify the corresponding compound average annual return.

In addition, it should also explain the source of simulation data, simulation methods and formulas, and the corresponding risk;

(C) is true, accurate and reasonable presentation of fund performance and management of fund managers.

    Fund performance data shall be approved by the Fund custodian review or removal of funds from the regular reporting.

    Article 36th Fund posted the past performance of the Fund's promotion materials should be specifically stated, the Fund's past performance is not indicative of its future performance, other funds managed by Fund Manager's performance does not constitute guarantee of fund performance.

    37th Fund promotion materials to compare the performance of different funds, you should use a comparable sources of data, statistical methods and the comparison period and relevant data sources, statistical methodology should be fair, accurate, and relevance.

    Article 38th Fund promotion material accompanied by charts, should be clear and accurate.

    39th Fund mentioned Fund rating agencies evaluating the results of promotion materials shall conform to related specifications referenced by the China Securities Regulatory Commission on the Fund's results, and shall set out the name and date of assessment fund rating agency.

    40th promotion material published Fund Manager of the fund shareholder background, should be specifically stated business segregation between fund managers and shareholders, shareholders are not directly involved in the Fund's investment operations.

    41st promotion materials in the promotion of the Fund of money market funds, should prompt investors, buy a money market fund is not equivalent to the funds as money in the Bank or deposit-taking financial institution, the Fund Manager does not guarantee that the Fund will profit or guarantee a minimum income.

42nd in promotional material to promote capital preservation funds, should fully disclose the risks of capital preservation funds, the investors capital preservation fund does not mean that the funds as money in the Bank or deposit-taking financial institutions, and the capital preservation fund in extreme circumstances there is a risk of loss of principal.

    Guaranteed fund capital preservation during the open subscription, it should be explained in the related business announcement and promotion material during the open subscription, investors purchase amount is guaranteed.

Article 43rd Fund promotion material should contain clear and bold risk tips and cautionary words, to remind investors of the investment risk, read the Fund contract and fund prospectus carefully, understand the Fund's specific situation.

There is enough flat space of promotion material should be added to the materials of the Fund in conformity with the provisions necessary to risk reminder. Television, movies, Internet information, public Web site link promotion material should include image display lasts for at least 5 seconds, suggesting that investor risks and refer to the offering document of the Fund.

    Radio expression above should be in the form of narration.

    44th promotion materials containing funds of the Fund approved by the China Securities Regulatory Commission, special declaration should be approved by the China Securities Regulatory Commission does not mean that the China Securities Regulatory Commission on the Fund's risks and benefits of making substantive judgments, recommendations or guarantees.

    The fifth chapter Fund sales charges

    45th in the Fund contract, the Fund Manager shall prospectuses or announcing the charge sales fees set out in items, conditions and modes, rates set forth in the prospectus or notice and cost calculation methods. Article 46th Fund sales institutions for Fund sales business, agreed in the contract and prospectus of the fund investors to charge subscription fees, subscription fees, redemption charges, switching fees and sales charges and other fees.

    Fund sales institutions charge a sales fee, shall comply with the relevant regulations of the China Securities Regulatory Commission on the Fund's sales charge. 47th Fund sales institutions for fund investors provide value-added services, you can collect service fees from fund investors.

    Value-added services refer to fund sales institutions in sales of Fund products, in the process, in ensuring compliance with the Fund and related product sales on the basis of the principle of the applicability, in addition to statutory or funds provided to the investor contracts, prospectuses concerning the service, and other additional services.

48th Fund sales institutions charge a service fee, shall comply with the following requirements:

(A) following the rational, open and consistent price pricing principles;

(B) the outlets should be publicized for all value-added services value-added services;

(C) the uniform printing services agreements, clear contents of the value-added services, ways, fees, terms, and dispute resolution mechanisms;

(D) the fund investors shall enjoy the right to free choice of value-added services, fund investors should opt for value-added services in the service agreement signed;

(E) value added service fee shall be paid for separately and is not intended to purchase (subscription) deducted;

(Vi) signed a services agreement to provide value-added services and fund sales institutions should be the principal, any sales person not allowed to charge service fees;

(VII) other circumstances as prescribed by the relevant regulatory authority.

    Fund sales institutions to provide value-added services and to charge service fees to investors, printed service agreement should be filed to the CSRC. 49th fund managers and fund sales institutions in the funds agreed in the sale agreement based on Fund sales institutions selling the holdings of the Fund proportion of customer maintenance, used to fund sales institutions to pay customer service and costs relating to sales activities.

    Fund sales institutions charged account maintenance fees shall conform to relevant regulations of the China Securities Regulatory Commission on the Fund's sales charge.

    50th fund managers and fund sales institutions shall fund sales agreements or conventions in the supplementary agreement, both subscription (subscription) fees, redemption fees, sales fees and other cost of sales percentage, based on their actual sales costs that Fund sales, accounting, bookkeeping, taxes.

    51st fund industry association can self fund sales charges set forth in the rules of the minimum standards.

    Sixth chapter sales specification

52nd handle Fund sales business or handle Fund sales-related business, and sales agencies charged to the Fund in order to fund the deal (including accounts) on the basis of the relevant Commission shall obtain Fund sales business qualification or identified by the China Securities Regulatory Commission. Without fund distribution business qualifications or without the CSRC found the institutions, not for sales or fund-related business.

    Any individual may personally carry out the Fund's sales or related business.

    53rd Fund sales institutions shall establish a sound and effective implementation of the system of Fund sales business, strengthen Fund sales business compliance checks and supervision of operations, ensuring the implementation of Fund sales business with the China Securities Regulatory Commission to fund sales institutions ' internal control requirements.

    54th Fund sales institutions shall ensure that Fund sales information management platform for secure, efficient operation, and in accordance with the China Securities Regulatory Commission on relevant requirements of Fund sales business information management platform.

55th without the Fund sales institutions employed no personnel shall not engage in sales activities. Promotion Fund staff, Fund sales information management system for operation and maintenance personnel engaging in fund sales business personnel should be qualified as a fund sales business.

    Fund sales institutions shall establish a sound and efficient implementation of the Fund's sales staff continuous training system, strengthen Fund sales personnel conduct inspections and supervision.

    56th Fund sales institutions shall establish and improve the share holders of the Fund account and the capital account management system, as well as the Fund share holders of capital access program and licensing examination and approval system.

    57th Fund sales institutions Fund and related products in the sales process, should uphold the principles of investor interests, according to the investor's risk-bearing capacity different risk levels of product sales, to sell the right products to the right kind of fund investors.

Article 58th Fund sales institutions shall establish and fund sales application management system, including at least the following:

(A) ways and means of Fund Manager due diligence;

(B) to fund the level of risk of the product settings, product risk assessment approach and methodologies of the Fund;

(C) the investor risk tolerance of the Fund conducted a survey and evaluation of ways and means;

    (D) the method of matching fund products and fund investors.

    59th Fund sales institutions Fund used by product risk assessment methods and their descriptions should be exposed to fund investors.

    60th when selecting a fund sales institutions Fund Manager in fund sales institutions should be carefully investigated, Fund sales institutions select the sales of Fund products should be carefully investigated and the Fund Manager.
61st Fund sales institutions should enhance investor education to guide investors fully understand the risk characteristics of Fund products, safeguard the legitimate rights and interests of investors.

    62nd Fund sales institutions go through the sales operations of the Fund shall, in accordance with anti money-laundering regulations require identifying customer identification, verification of customer's valid identity documents, register clients basic information, ensuring that the Fund account holders name and recorded identification that matches the name and retain copy or photocopy of a valid identity document.

    Fund sales institutions sells funds to you entrust other institutions to conduct client identification shall be by contract, agreement or other written documents, identify client identification, client identification data and transaction record-keeping and information exchange, large-value and suspicious transactions reports and other aspects of anti-money laundering responsibilities and procedures. 63rd Fund sales institutions shall establish a comprehensive file management system, keep the Fund share holders ' account information and other information related to sales.

    Client identification data from the business relationship is over for at least 15 years when, and other sales-related information for at least 15 years since the business year.

64th Fund sales institutions Fund sales business by Fund sales institutions and fund managers at Headquarters should sign a written sales agreement, specify the rights and obligations of both parties, and including at least the following:

(A) cost of sales proportions and manner of distribution;

(B) the Fund holder's contact information, such as customer information are saved;

(C) the service responsibilities of the holders of the Fund;

(D) anti-money-laundering obligations and responsibilities;

(E) Exchange sales information and funds settlement rights and obligations of the Fund.

    Without a written sales agreement, Fund sales institutions shall apply the Fund's sales.

    65th Fund sales institutions shall will fund distribution business qualifications of Fund sales outlets-five prominent positions or be publicized on its Web site.

    66th fund raising applications until they have been approved by the China Securities Regulatory Commission, Fund sales institutions shall not handle Fund sales business, may not be available to the public, publish promotion materials of the Fund or sell fund shares.

    67th Fund sales institutions choose the Fund sales institutions shall comply with the regulatory requirements, and establish and improve fund sales institutions select standards and business processes, full assessment of the relevant risks, specify the rights and obligations of both parties. 68th Fund registration agencies referring to handle funds transfer registration, custody and settlement agencies.

    Fund registration agencies can apply for investor fund account set up and management, Fund share registration confirmation, clearing and settlement, Fund sales, agent bonuses, roster of established and holding the Fund share holders and other business. 69th registration registration of agencies should ensure that the Fund's share of the fund transfer, custody and clearing businesses to handle safe, accurate, timely, and efficient.

Key responsibilities include:

(A) establish and manage investor accounts of fund units;

(B) is responsible for the registration of fund units;

(C) the Fund transaction confirmation;

(Iv) agents bonuses;

(E) establishing and holding the Fund share holders register;

    (Vi) other duties stipulated by the registration agency agreement.

    70th Fund Manager change fund registration agencies, should change before the change programme reported that the China Securities Regulatory Commission for the record. 71st Fund sales institutions, Fund registration agencies shall be specified by the CSRC's technology platform for data exchange, and complete the registration data of the Fund designated by the CSRC agency focused on backup storage.

    Data exchange shall conform to the relevant specifications of the China Securities Regulatory Commission. 72nd open-end Fund after the entry into force of the contract, Fund sales institutions shall, in accordance with the laws and administrative regulations, the China Securities Regulatory Commission and the Fund contract, the provisions of the sales agreement, the Parties shall handle the subscription and redemption of fund units, not allowed to stop processing of fund units for sale or refuse to accept investors ' subscription and redemption applications.

    Pause or open subscription and redemption of fund management business, and shall specify in the notice the reasons and basis.

73rd Fund sales institutions shall not fund outside the contract date or time for the subscription and redemption of fund units, or conversion.

    Investors of the Fund contract date and time apply for subscription, redemption or conversion, as the next trading day transaction processing, next time its price of subscription and redemption of fund units for handling Fund units subscription and redemption time opening day price.

    74th when investors purchase fund shares, you must purchase amount in full, except for the Special Fund provided by the CSRC; investor payments in full in accordance with the regulations and submit a purchase request, purchase applications shall be valid; purchasing application has been successful, the Fund registration confirmation shall prevail.

    75th Fund sales institutions shall provide effective ways for fund investors query Fund contracts, prospectuses and other offering document of the Fund.

    76th Fund sales institutions shall, in accordance with the Fund contract and prospectus and fund sales and service agreement agreed to charge investors sales charges and accounting, bookkeeping without funds, prospectuses, Fund sales and service agreement stipulated in the contract, shall not be extra charge to investors without prospectus set forth the notice and shall not apply different rates to different investors.

    77th Fund sales institutions shall be kept confidential by law, investors, not for legal reasons not to disclose investor sale, hold fund shares or other information.

    78th Fund sales institutions and funds activities related to institutional fund sales through the Internet sales, Internet content provider shall be submitted to the relevant departments for the record, its fund sales business information systems should be consistent with the CSRC requirements related to information management platform and open to investors before the CSRC record Fund sales Web site address.

    79th object of Fund sales institutions for sale to fund investment banking activities such as product regulations, shall be determined separately by the China Securities Regulatory Commission.

80th Fund sales institutions engaging in fund sales activities, shall not be any of the following circumstances:

(A) aim at squeezing out competitors, lower Fund fees;

(Ii) sweepstakes, rebates or send in-kind, sold insurance, fund units and other funds;

(C) the sales below cost sales Fund;

(D) the discount on the subscription fee during the raise (including self-service transactions the subscription services such as Internet, phone);

(E) undertake to use Fund assets to benefit transportation;

(F) for an appointment call or reservation purchase (except for fixed investment operations of the Fund), the announcement unilaterally changed the release date of the Fund not according to stipulations;

(G) misappropriation of funds settlement funds;

(H) the circumstances provided for in article 33rd;

    (IX) other circumstances prohibited by the CSRC.

    Seventh chapter of regulatory and legal responsibilities

    81st fund managers should be signed with the Fund sales institutions within 7th day of the sale agreement, sales agreement submitted to the Agency of the China Securities Regulatory Commission, where their principal place of business activities. 82nd departure of Fund sales institutions shall establish personnel audit or the outgoing system. Independent sales agencies, Chairman and General Manager or managing partner withdraws from the departure should be based on the provisions of the China Securities Regulatory Commission's audit.

    Independent sales agency and other senior management personnel, securities investment consultation institutions senior management responsible for Fund sales and other Fund sales institutions responsible for Fund sales business department heads retiring should be reviewed under the provisions of the China Securities Regulatory Commission.

    83rd Fund sales institutions responsible for sales operations of the Fund's supervisory Auditors should check the compliance of Fund sales business in a timely manner, and to be completed by the end of the year within a quarter the annual supervisory audit report, to be archived for future reference. 84th Fund sales institutions shall, according to the China Securities Regulatory Commission for the fulfilment of obligation to submit information.

    The China Securities Regulatory Commission and its agencies to fund sales institutions engaging in fund sales activities for regular or irregular checks, Fund sales institutions shall cooperate with.

    85th sales agencies in violation of the regulations of the Fund, the China Securities Regulatory Commission and its agencies can order the rectification, suspension related businesses; directly responsible and other persons directly responsible can take regulatory talks or issue a letter of warning, suspension of duties, identified as not suitable for related positions, such as administrative controls.

    86th commercial banks, securities companies, securities investment advisory institutions, independent sales organizations, as well as other bodies prescribed by the CSRC application for fund distribution business qualifications, withholding relevant information or provide false materials, the China Securities Regulatory Commission was inadmissible; has been accepted, rejected, and a warning.

    87th without fund distribution business qualifications, unauthorized start-up fund sales business, correction, and subject to a warning, a fine; directly responsible in charge and other direct liable persons, subject to a warning, fine.

    88th article except with the qualification of the CSRC's Fund sales institutions and related agencies, Fund sales institutions and without fund distribution business qualifications of institutions or individuals, start-up fund sales business, ordered to fund sales institutions to correct, and a warning, fine; directly responsible in charge and other direct liable persons, subject to a warning, fine.

89th Fund sales institutions engaging in fund sales activities, 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 in accordance with the provisions of the present article 27th opening sales account with the Fund;

(B) is not used in accordance with the provisions of the present article 32nd Fund promotion materials;

(C) violation of the provisions of the present article 55th, allowed without appointment sales of funds or failure to obtain qualified officers for Fund sales promotion fund;

(D) is not in accordance with the provisions of the present article 64th sign a written sales agreement;

(E) violation of the provisions of the present article 66th, available to the public without permission, publish promotion materials of the Fund;
(F) violation of the provisions of the present article 72nd, arbitrarily stop processing for sale or reject the investors ' subscription and redemption of fund units;

(VII) in violation of the provisions of the present article 73rd, determine the price of subscription and redemption of fund units;

(VIII) not in accordance with the provisions of the present article 76th charge sales fees and accounting, bookkeeping;

(I) is not in accordance with the provisions of the present article 77th as investors keep a secret;

(10) engaged in the 80th as prohibited by these measures;

(11) in accordance with the provisions of the present article 83rd presided, and monitoring the audit report;

(12) in accordance with the provisions of the present article 84th performance information reporting obligations or with the China Securities Regulatory Commission and its agencies carry out supervision and inspection.

    Fund sales institutions prescribed in the preceding paragraph, if the circumstances are serious, shall be ordered to suspend or terminate the Fund sales business.

90th Fund sales institutions shall have one of the following circumstances, termination of Fund sales business qualification:

(A) in violation of the provisions of the present article 80th seventh, misappropriation of funds settlement funds;

    (B) within 1 year of eligibility for Fund sales business commenced sales operations of the Fund.

91st Fund sales institutions had been ordered to suspend Fund sales business, during the pause may not engage in the following activities:

(A) sign a new sales agreement;

(B) Promotion Fund;

(C) the sale of fund units;

(D) apply for purchase of fund units.

Fund sales institutions were ordered to terminate the sales operations of the Fund, it shall cease Fund sales activities.

    Fund sales institutions had been ordered to suspend or terminate the sales operations of the Fund, the Fund Manager shall cooperate with the designated by the CSRC's Fund agencies adequately addressed the investor share subscription and redemption, transfer-managed business, conventions and in accordance with the sales agreement, lawful sales compensation for related losses.

92nd Fund sales, payment and settlement institutions shall have one of the following circumstances shall be ordered to suspend or terminate the sales payment and settlement operations of the Fund:

(A) in violation of the provisions of the present article fifth, misappropriation of funds settlement funds;

(B) significant violations.

    Fund sales, payment and settlement institutions is suspended or terminates the sales payment and settlement operations of the Fund, Fund sales institutions and oversight bodies shall cooperate with the designated by the CSRC's Fund agencies adequately addressed the investor share subscription and redemption, transfer-managed business, conventions and according to relevant agreements, law to recover the loss.

    The eighth chapter by-laws 93rd these measures come into force October 1, 2011. Released on June 25, 2004, the securities investment fund management of sales (SFC 20th) repealed simultaneously.