Interim measures for the evaluation of operational management of securities investment funds

    (November 6, 2009, China Securities Regulatory Commission, the 64th release come into force on January 1, 2010) Chapter I General provisions First in order to standardize the evaluation of securities investment funds business, Securities Investment Fund's long-term investment philosophy Guide, protect the legitimate rights and interests of fund investors and interested parties.

    Under the Securities Act, the securities investment fund law and other laws and regulations, these measures are formulated.

    Article in the People's Republic of China territory, on securities investment funds Fund rating agency (hereinafter referred to as the Fund) for evaluation and evaluation results published by public funds, these measures shall apply. Fund rating agency evaluation results published by private funds only, this approach is not applicable.

    But the Agency signed an agreement with used funds object of evaluation results, to record the results against each other.

    Third fund evaluation operations in these measures, including evaluation of the Fund and its evaluation on the investment income of the Fund and risk management capacity rating, or fund managers award, a single index ranking or other evaluation activities identified by the China Securities Regulatory Commission.

    Rating refers to the Fund evaluation agencies and evaluators to use specific methods on the Fund's investment income or fund managers and risk management capabilities for comprehensive analysis and use has a specific meaning of the symbol, number, or text analysis activities.

    Public through newspapers, radio, television, the Internet and other forms of public media or seminars, briefings, analysis, computer terminals, telephone, fax, email, SMS, forms, publish evaluation results to non-specific objects.

    Article fourth Fund evaluation operations should be guided by the following principles:

    (A) long-term principles that focus on the long-term evaluation of the Fund, foster and guide investors long-term investment philosophy, not to short, frequent Fund evaluation results to mislead investors;

    (B) the principle of impartiality, maintaining neutrality and fair treatment of all objects, shall not distort or discredit object, preventing the possibility of a conflict of interest;

    (C) the comprehensive principle, that is, a comprehensive evaluation of the Fund's investment income or fund managers and risk management capacity, shall not be the sole criterion for a single index fund rating does;

    (D) the principle of objectivity, that is, evaluation processes and results objective and accurate, false information shall not be used as a basis for evaluation of the Fund, shall not publish false evaluation results;

    (E) the principle of consistency, that is, consistent evaluation criteria, methods and procedures of the Fund may not be used without public disclosure of evaluation criteria, methods and procedures;

    (F) the principle of openness, even in the public disclosure of the market data, data outside of the public disclosure of the information shall not be used. Fifth China Securities Regulatory Commission and its agencies shall conduct supervision and management on evaluation of operational activities of the Fund.

    Securities Association of China according to law to discipline the evaluation of operational activities of the Fund management.

    Chapter II evaluation agencies and evaluators

    Sixth fund evaluation institutions should join the Securities Association of China. China Securities Industry Association Fund evaluation institutions should establish strict discipline rules, code of practice, standards of membership and membership procedures.

    Evaluation institutions should be 30 days after the implementation of this approach or engaged in Fund evaluation operations according to the Association within 30 working days after public notice of the request to the Association to draw attention to for admission procedures.

    Article seventh Fund rating agency shall within 15 working days after the accession to the Securities Association of China to the China Securities Regulatory Commission submitted paperwork for the record, the material shall include the following documents:

    (A) the rating agencies of the Fund;

    (B) copy of business license;

    (C) engaged in the evaluation of the Fund business and business owner list, curriculum vitae, copies of ID card and proof of professional qualifications for the Fund;

    (D) complete the theoretical foundation of the Fund, standard, description of methods;

    (E) the internal control systems and business processes;

    (Vi) credit commitments;

    (VII) other documents requested by the CSRC.

    Article eighth Fund rating agencies should have a sound organizational structure and improving the internal control system, enough professionals familiar with the Fund and its evaluation of operational; sound, systematic and rigorous evaluation criteria, methods of business specifications.

    Nineth Fund evaluation agencies should facilitate the Fund evaluation operations and effective internal control and standardize operations:

    (A) the reliable fund information gathering system and strict management information database, to ensure information security, authenticity and integrity of the data;

    (B) have established evaluation criteria, methods and operating procedures, and establishment and maintenance of information processing system;

    (C) the establishment and strict implementation of the correction and review procedures to ensure objective and accurate evaluation results;

    (D) establish evaluation criteria, methods and procedures of the Fund's public disclosure, and truthful, accurate, complete and timely disclosure;

    (E) establishing and enforcing strict regulations document system, properly preserving business data, working papers and related documents;

    (Vi) establish evaluation criteria, methods and operating procedures of the Fund to assess the system and ensure the consistency of evaluation of operations of the Fund;

    (VII) establish a fund evaluation results published policies and procedures to ensure Fund released the results are consistent with requirements of the relevant business rules.

    Article tenth Fund evaluator should have professional qualifications for the Fund. Fund evaluation refers to fund evaluation of operational personnel.

    Fund evaluation staff were recruited by a Fund rating agency, may engage in Fund evaluation operations, and evaluators of the Fund shall not simultaneously practising in two or more evaluation institutions.

    Fund evaluation institutions shall not employ any, gigs personnel engage in Fund evaluation operations.

    Chapter evaluation business 11th Fund evaluation operations should be complete and systematic basis, criteria and methodology.

    Facility evaluation methods should be based on the institution's own research results, not infringing on other Fund evaluation the relevant intellectual property rights.

    To evaluate the Fund shall take into account at least the following:

    (A) the fund prospectus and Fund contract investment, investment, investment and performance benchmarks;

    (B) the risk-return characteristics of the Fund;

    (C) the Fund investment decision-making system and the effectiveness and consistency of the system.

    To evaluate the Fund Manager shall take into account at least the following:

    (A) the compliance of the Fund management company and its staff;

    (B) the Fund management company's governance structure;

    (C) stability of the shareholders and senior managers, fund managers;

    (D) investment management and research capacity;

    (E) disclosure and risk management capability.

    12th classification of funds should be based on the relevant laws, administrative regulations, and the China Securities Regulatory Commission as the standard, in laws and administrative regulations and carried out on the basis of the classification of the China Securities Regulatory Commission on the funds required subdivision; stipulated by laws, administrative regulations and the China Securities Regulatory Commission did not do classifications should be clearly marked and explain the reasons. 13th Fund evaluation agencies should fund evaluation criteria, evaluation methods and procedures submitted to the China Securities Regulatory Commission, the China Securities Industry Association record, and through the China Securities Industry Association Web site, the Agency's Web site and at least one designated by the CSRC the disclosure media announced to the public.

    Fund rating agencies to change the content, shall be filed in a timely manner, notice.

    Article 14th any institution engaged in the evaluation of the Fund business and publishing results in public, not any of the following acts:

    (A) to proceed to a joint evaluation of the different categories of Fund;

    (B) to fund fewer than 10 funds included in the same category ratings or single index rankings;

    (C) the Fund for less than 6 months of the entry into force of the contract funds (except money market funds) awards or single index rankings;

    (D) funds (except money market funds), the Fund Manager rating rating of less than 36 months;

    (E) the update interval of the Fund, the Fund Manager rating less than 3 months;

    (Vi) for the Fund, the Fund Manager's awards awards less than 12 months;

    (VII) for the Fund, the Fund Manager's single rankings (including clicks or consult the Web site of the function of system data list) ranking of less than 3 months;

    (H) the Fund, the Fund Manager update interval of a single index ranking less than 1 month;

    (I) to evaluate the specific customer asset management plan.

    15th Fund evaluation bodies and objects when there is a current or potential conflicts of interest, should be declared in the rating reports, evaluation reports the Agency and evaluate the relationship between objects, and indicate in the Agency in the evaluation of measures taken to avoid conflicts of interest.

    16th Fund rating agencies should avoid using the object there is a current or potential conflicts of interest of personnel to evaluate the object.

    17th the Fund documents such as evaluation reports evaluation results should be declared is not a prediction of future performance, and should not be regarded as investment funds advice.

    18th Fund evaluation results should be based on facility evaluation bodies and not to the Fund, on behalf of evaluation of publishing in his own name.

    19th Fund evaluation agencies should be to fund investor or fund evaluation data and information provided by the public, save 15 years from the date of offer.

    Reference to the fourth chapter Fund evaluation results

    20th fund management and fund sales institutions and designated by the CSRC information media shall not refer to securities industry association membership, China does not have the institutions to provide funds to evaluate results.
21st fund management and fund sales institutions and designated by the CSRC the disclosure media decided to fund with the Fund evaluation agencies and reference evaluation results, in advance depending on the Nineth of these measures requires the cooperation of the Fund rating agencies to conduct due diligence and verification whether their internal controls to safeguard the Fund evaluation operations effective and normative functions.

    Fund managers, Fund sales institutions and designated by the CSRC the disclosure media should avoid violates the internal control requirements of article Nineth Fund evaluation provides evaluation results.

    22nd fund management and fund sales institutions and media decided to refer to funds designated by the CSRC information disclosure evaluation results, in advance in accordance with the measures required by article 14th business rules on the evaluation results of review had found violations of business specifications, should be brought to the Fund rating agency references adjusted or rejected.

    Fifth regulatory and legal liability

    Article 23rd evaluation institutions and evaluation of personnel in violation of the regulations of the Fund evaluation activities of the Fund, the CSRC shall order rectification, regulatory talks, letter of warning issued by regulatory measures are serious, administrative penalty according to law; a suspected crime, transferred to the judicial organs according to law, investigation of his criminal responsibility.

    Article 24th Securities Association of China for violation of discipline guidelines for disciplinary action and occupational norms of behavior are serious, cancel your membership.

    25th Fund rating agencies should be submitted to it in accordance with the provisions of the Securities Association of China-related filings and annual reports.

    26th article of China's securities industry Association Fund should be established to evaluate institutions and evaluation personnel engaged in Fund evaluation of operational repositories and file integrity through appropriate way to release the Fund rating agency members, and the establishment of tracking mechanisms to fund evaluation. 27th Chinese securities industry association to fund evaluation of operational activities of the agencies and evaluators inspect checked Fund rating agencies shall cooperate, no interference and obstruction.

    Securities Association of China problems found during the inspection time should be reported to the CSRC.

    28th Fund rating agencies after accession to the Securities Association of China, was not in accordance with the provisions of the present article seventh filed to the CSRC, discretionally engages in Fund evaluation operations shall be ordered to correct, simply or and a warning, fines are directly responsible for the charge and other direct liable persons shall only, or warning, fine.

    29th article fund management people, and fund sales institutions and the China SFC specified information disclosure media reference or released not has China Securities Industry Association members qualification of Fund evaluation institutions provides of Fund evaluation results of, China SFC take ordered corrected, and issued warning letter, regulatory measures, 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.

    Article 30th evaluation agencies in violation of the regulations of the Fund, appointment of personnel qualification does not have the funds, the China Securities Regulatory Commission taking regulatory measures shall be ordered to correct, simply or and a warning, fines are directly responsible for the charge and other direct liable persons shall only, or warning, fine.

    31st the Fund rating agencies are not in accordance with this regulation the relevant documents and information, correction, separately or concurrently warning, fine.

    Article 32nd Fund rating agency, one of the following acts, the CSRC shall order rectification, regulatory talks, letter of warning issued by regulatory measures such as, separately or concurrently warning, fine:

    (A) internal control system does not comply with the provisions of article Nineth;

    (B) evaluation standards and methods are not in line with the 11th, 12th, the provisions of article;

    (C) the public disclosure of Fund is not in accordance with this approach 13th evaluation criteria, methods and procedures, or not in accordance with the public disclosure of the evaluation criteria, methods and procedures the Fund evaluation operations;

    (D) violation of the provisions of the present article 14th evaluation or publish evaluation results;

    (E) violating these rules set forth in 15th and 16th conflicts of interest prevention system;

    (Vi) is not fair to object, or denigrate, slander other Fund rating agency, evaluators and other acts of unfair competition.

    The sixth chapter supplementary articles 33rd article this way come into force on January 1, 2010.