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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(Released November 29, 2007, China Securities Regulatory Commission, the 51st since as of January 1, 2008) Chapter I General provisions article 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 securities investment fund law 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 standard 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.
    VIII article meet following conditions of fund management company by China SFC approved, can change business range, carried out specific assets management business: (a) net worth and the assets management scale meet China SFC of about provides; (ii) business behavior specification, management securities investment fund 2 years above and recently one years within no for illegal violations behavior by administrative punishment or was regulatory institutions ordered rectification, no for illegal violations behavior is was regulatory institutions survey;
    (Three) has equipped with has appropriate of professionals engaged in specific assets management business; (four) has on prevention interests conveying, and violations commitment Returns or bear loss, and not due competition, behavior developed has effective of business rules and measures; (five) has established fair trade management system, clear has fair trade of principles, and content and achieved fair trade of specific measures; (six) has established effective of investment monitoring system and report system, can timely found exception trading behavior;
    (VII) other conditions set by CSRC based on prudent regulatory principles.
    Nineth as a single customer for specific asset management business, commissioned the initial capital shall not be less than RMB 50 million, except otherwise stipulated by the CSRC.
    Article tenth fund management companies in the specific asset management business, entrusted assets should be referred to the commercial banks with the funds managed qualifications managed.
    11th 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.
    12th 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.
    13th entrusted assets should be used for the following investments: (a) stocks, bonds, securities investment funds, Central Bank bills, short-term financing bonds, asset-backed securities, derivatives, (ii) other investments prescribed by the CSRC.
    14th a 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.
    15th in the specific asset management business, 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.
    16th 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.
    Article 17th assets entrusted before the people entered into asset management contracts, 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. 18th 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. In property delegate during, shall not has following behavior: (a) hide truth, and provides false information; (ii) delegate source improper of assets engaged in money-laundering activities; (three) to assets management people provides or asking for commercial bribery; (four) requirements assets management people violations commitment returns; (five) requirements assets management people relief or returned management fee; (six) requirements assets management people using by management of other assets for assets delegate people seek improper interests; (seven) requirements assets management people in securities underwriting, and
    To provide cooperation in securities investment and other business activities, (VIII) violation of asset management asset management investment contract interference Act; (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 and (10) other acts prohibited by laws and regulations, the China Securities Regulatory Commission.
    Article 19th 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.
    Article 20th asset managers and asset custodian shall, in accordance with the relevant provisions of the China Securities Regulatory Commission, entrusted assets specifically for trading of securities, securities account and funds account in order 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 prohibit the same portfolio or between different portfolios within the same trading day reverse transactions and tunneling and other unfair trade practices.
    Full compliance with the relevant index for securities investment portfolio composition may not be restricted by the provisions of the preceding paragraph.
    21st the Fund management company shall take the initiative to avoid possible conflicts 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.
    22nd the Fund management company is engaged in a specific asset management business, should set up a special business unit, the investment manager and Office area of the Fund Manager of the securities investment funds should be strictly separated and may not concurrently with each other.
    For specific asset management investment manager shall be submitted to the China Securities Regulatory Commission for the record.
    23rd article fund management company engaged in specific assets management business, shall not has following behavior: (a) using by management of other assets for specific of assets delegate people seek not due interests, and for interests conveying; (ii) using by management of specific customer assets for the client zhiwai of any third party seek not due interests, and for interests conveying; (three) used any way to assets delegate people returned management fee; (four) violations to customer commitment Returns or bear loss; (Five) will its inherent property or others property confused Yu delegate property engaged in securities investment; (six) violation assets management contract of agreed, beyond permission management, and engaged in securities investment; (seven) through newspaper, and TV, and broadcast, and Internet (Fund management company website except) and other public media public promotion specific of specific assets management business programme; (eight) obtained or received specific assets management business paid zhiwai of improper interests; (nine) engaged in insider trading, and Manipulate the prices of securities and other improper securities trading activities; (x) laws, regulations and other acts prohibited by the China Securities Regulatory Commission.

    Article 24th 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 assets and report China card.
    Chapter III supervision article 25th asset manager shall, within 5 working days the asset management contract signed between the China Securities Regulatory Commission records.
    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. 26th asset management shall, in accordance with asset management of the contract, 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. 27th 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. 28th the Fund management company shall analyse 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. 29th the Fund management company shall, within 15 working days of 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.
    Article 30th 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.
    31st 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. Fourth chapter legal responsibility 32nd article assets management people, and assets managed people, and assets delegate people violation legal, and administrative regulations and the this approach provides of, China SFC and sent institutions on its take ordered rectification, and suspended or terminated handle specific assets management business, and suspended its fund sale and the continued sales activities, administrative regulatory measures; on directly is responsible for of competent personnel and other directly responsibility personnel, take regulatory talk, and issued warning letter, and remember into integrity archives, and suspended perform positions, and
    Identified as unsuitable for related positions, such as administrative controls.
    33rd article assets management people, and assets managed people, and assets delegate people and directly is responsible for of competent personnel and other directly responsibility personnel violation this approach provides engaged in specific assets management business activities, China SFC in accordance with legal, and administrative regulations of about provides for administrative punishment; legal, and administrative regulations not do provides of, in accordance with this approach of provides for administrative punishment; suspected crime of, law transferred judicial organ, held its criminal.
    34th article assets management people, and assets managed people violation this approach 16th 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 or terminated related business qualification; 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. 35th article assets management people, and assets managed people violation this approach 23rd 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 23rd 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, separately or concurrently warning, fine; the circumstances are serious, shall be ordered to suspend or terminate the related qualification; 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.
    36th article assets management people, and assets managed people has following case one of of, ordered corrected, single at or and at warning, and fine; plot serious of, ordered suspended or terminated related business qualification; 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: (a) violation this approach eighth article of provides, without China SFC approved change business range, unauthorized engaged in specific assets management, and managed business;
    (Ii) not according to this approach tenth article of provides will delegate property handed assets managed people managed; (three) violation this approach 13th article, and 14th article of provides, beyond investment range and the investment limit; (four) not according to this approach 20th article of provides fair treats by management of various assets; (five) violation this approach 23rd article subsection (ii) items to subsection (10) items provides of; (six) not according to this approach 25th article of provides handle record procedures.
    37th assets violates the measures stipulated in 17th and 18th, correction, separately or concurrently warning, fine; 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.
    38th 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.
    Fifth chapter supplementary articles article 39th article seventh paragraph (b) referred to more than one customer's asset management business specific implementation arrangements shall be determined separately by the China Securities Regulatory Commission.
                                  40th these measures come into force on January 1, 2008.

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