(November 29, 2004 China Securities supervision Management Committee, and China banking supervision Management Committee makes 26th, announced since January 1, 2005 up purposes) first article to specification securities investment fund managed qualification management, maintenance securities investment fund managed business competition order, protection investors and the related party lawful rights and interests of, promote securities investment fund health development, according to securities investment fund method, and banking supervision management method and the other related legal, and administrative regulations, developed this approach.
    Article II commercial banks engaging in securities investment funds (hereinafter referred to as the Fund) managed services, shall be approved by the China Securities Regulatory Commission (hereinafter referred to as the China Securities Regulatory Commission) and China Banking Regulatory Commission (hereinafter referred to as the China Banking Regulatory Commission) approval, obtain qualifications for funds managed according to law.
    Not qualified as a fund managed by commercial banks may engage in Fund custody business. Third article application Fund managed qualification of commercial banks (following referred to applicants), should has following conditions: (a) recently 3 a fiscal year of end net worth are not below 2 billion Yuan Yuan, capital sufficient rate meet regulatory sector of about provides; (ii) has specifically of Fund managed sector, and and other business sector keep independent; (three) Fund managed sector intends any senior management personnel meet statutory conditions, intends engaged in Fund liquidation, and accounting, and investment supervision, and information disclosure, and
    Internal audit monitoring, business of practice industry personnel not less than 5 people, and has Fund practitioners qualification; (four) has security custody Fund property of conditions; (five) has security efficient of liquidation, and delivery system; (six) Fund managed sector has meet business need of fixed places, and equipped with independent of security monitoring system; (seven) Fund managed sector equipped with independent of managed business technology system, including network system, and application system, and security protection system, and data backup system;
    (H) improve internal auditing and monitoring system and risk control system, (I) the last 3 years has no record of serious violation of and (10) stipulated by laws, administrative regulations and approved by the State Council of China Securities Regulatory Commission, China Banking Regulatory Commission under other conditions. IV article applicants should has security custody Fund property of following conditions and capacity: (a) has engaged in fund managed business of equipment and facilities; (ii) for each only fund separate establish accounts, keep Fund assets of full and independent; (three) will by managed of Fund assets and owned assets strictly separate custody; (four) law supervision fund management people of investment operation; (five) law implementation fund management people of instruction, disposition, and distribution fund assets; (six) law review, and review fund management people calculation of Fund assets net, and
    Net value of fund shares and purchase price; (VII) keep the Fund's managed operations records, account books, reports and other relevant information; (h) have a sound system hosting business.
    V article applicants should has sound of liquidation, and delivery business system, liquidation, and delivery system should meet following provides: (a) system within securities trading settlement funds in two hours within meeting designated to account; (ii) from Exchange security accept trading data; (three) and fund management people, and fund registered registration institutions, and securities registration settlement institutions, related business institutions of system security docking; (four) law implementation fund management people of investment instruction, timely handle liquidation, and delivery matters.
    VI article applicants of Fund managed business places, and security prevention facilities, and and fund managed business about of other facilities and related system, should meet following provides: (a) Fund managed sector of business places relative independent, equipped with access system; (ii) contact to fund trading data of business post has separate of office room, has nothing to do personnel cannot free into; (three) has perfect of Fund trading data confidential system; (four) has security of Fund managed business data backup system;
    (E) Emergency Programme Fund custody business, emergency response capacity. VII article applicants should to China SFC submitted following application material, while copy China silver prison will: (a) applications; (ii) has securities business qualification of Accountants firm issued of net worth and capital sufficient rate special inspection funding report; (three) established specifically Fund managed sector of proved file; (four) internal institutions set and post duties provides; (five) Fund managed sector intends any senior management personnel and practice industry personnel basic situation, including intends any senior management personnel served qualification application material, Intends any practice industry personnel list, and resume, and fund practitioners qualification proved copies, and professional training and the post equipped with situation; (six) on security custody Fund property about conditions of report; (seven) on Fund liquidation, and delivery system of run test report; (eight) Office places plane figure, and security monitoring system design programme and installation debugging situation report; (nine) Fund managed business backup system design programme and emergency processing programme, and emergency processing capacity test report; (10) related business regulations, including business management, and
    Management procedures, fund accounting, Fund liquidation, information disclosure, internal auditing and control, internal control and risk management, information systems management, security and records management, a major report suspicious circumstances, emergency response, and other rules and regulations required to perform trustee duties (11) start-up Fund custody business business plan, (12), the China Securities Regulatory Commission, China Banking Regulatory Commission for other materials. Article eighth of China Securities Regulatory Commission shall within 5 working days from the date of receipt of application materials to make admissibility decisions.
    Application materials are complete and comply with the statutory format, issue a written acceptance to the applicant documents; application materials are incomplete or not in compliance with the statutory form, shall inform the applicants need a correction in its entirety. Nineth CSRC shall accept the application materials made within 20 working days from the date of the administrative decision.
    Approval of the China Securities Regulatory Commission to make decisions, should sign the CBRC; not to the approval decision, it shall explain the reasons and inform the applicant, the licensing procedure to terminate. The China Banking Regulatory Commission shall receive within 20 working days from the date of signing, and make a decision on the administrative license.
    Approved decisions of the China Banking Regulatory Commission, China Securities Regulatory Commission and China Banking Regulatory Commission jointly issued the approval document, and Fund custody business license issued by the CSRC; not to approve decisions of the China Banking Regulatory Commission, it shall explain the reasons and inform the applicant, the licensing procedure to terminate.
    Article tenth of China Securities Regulatory Commission, China Banking Regulatory Commission before making a decision on approval shall be joint custody Department of the commercial bank plans to establish Fund to build on-site verification.
    On-site verification should be carried out by two or more staff members.
    On-site verification of time calculation within the period specified in the preceding paragraph.
    11th article qualified as a Fund custody business of commercial banks as the trustee of the Fund.
    Trustee shall promptly apply for Fund custody Department senior manager qualification and licensing of practitioners, and the representation of the corresponding formalities.
    12th Fund Trustees should be law-abiding operators, honesty, dedication, diligence in complying with statutory and contractual duties.
    13th Fund trustee he shall take measures to ensure that the Fund is managed and to sell the business independent of each other, to protect the integrity and independence of the Fund assets.
    Article 14th Fund Trustees should strengthen communication and exchange with other Fund Trustees, and shall not engage in unfair competition, may not monopolize the market.
    15th the applicant concealed relevant information or provide false materials, the China Securities Regulatory Commission, China Banking Regulatory Commission shall not accept or not an administrative license, and give a warning, the applicant may not apply again for a fund managed in one year qualification. Applicants to cheat, and bribery, not due means made Fund managed qualification of, China SFC business China silver prison will revoked Fund managed qualification, sentenced warning, and fine, by China SFC cancellation Fund managed business license; China silver prison will can difference different case, ordered applicants on directly is responsible for of competent personnel and other directly responsibility personnel give disciplinary, or on its give warning, and fine, or ban its must term until lifelong engaged in banking work
    Applicants must not apply again for a fund managed in the 3 years qualifications; a suspected crime, transferred to the judicial organs according to law, be held criminally responsible.
    16th section of China Securities Regulatory Commission, China Banking Regulatory Commission shall conduct supervision of Fund custody business of commercial banks activity management.
    17th Fund Trustees appeared not in conformity with article III of this approach to the sixth provision conditions shall immediately report to the China Securities Regulatory Commission and China Banking Regulatory Commission and corrected within the time stipulated.
    Not timely report of, China SFC, and China silver prison will ordered corrected, on directly is responsible for of competent personnel and other directly responsibility personnel give warning, and at fine; China silver prison will can law ordered Fund managed people on directly is responsible for of competent personnel and other directly responsibility personnel give disciplinary; plot serious of, China SFC can and at suspended or revoked fund industry senior management personnel served qualification or fund practitioners qualification, China silver prison will can and at ban must term until lifelong engaged in banking work. 18th article Fund managed people appeared not meet this approach third article to sixth article provides conditions of case, not in provides term within corrected of, China SFC business China silver prison will suspended or revoked Fund managed qualification, by China SFC cancellation Fund managed business license; on directly is responsible for of competent personnel and other directly responsibility personnel, China SFC business China silver prison will give fine, China SFC can and at suspended or revoked fund industry senior management personnel served qualification or fund practitioners qualification,
    China Banking Regulatory Commission may be prohibited until a certain period life engaged in banking; a suspected crime, transferred to the judicial organs according to law, be held criminally responsible.
    19th article this regulation is applicable in the territory of commercial banks, and does not apply to foreign banks.
                                        20th these measures come into force on January 1, 2005.