Administrative Measures For The Operation Of Securities Investment Funds

Original Language Title: 证券投资基金运作管理办法

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(June 29, 2004, China Securities Regulatory Commission order the 21st release as of July 1, 2004) Chapter I General provisions article in order to regulate the operation of securities investment funds activity, protect the legitimate rights and interests of investors, promote the healthy development of the securities investment fund market, according to the securities investment fund law and other relevant laws, administrative regulations, and these measures are formulated.
    Second approach applies to securities investment funds (hereinafter funds) collection, property of the subscription and redemption of fund units, fund investments, fund allocation, the convening of the general meeting of the holders of fund units, as well as other operational activities of the Fund.
    Article engaged in operational activities of the Fund, shall abide by the laws, administrative regulations, and the China Securities Regulatory Commission (hereinafter referred to as the China Securities Regulatory Commission), and follow the principles of voluntariness, fairness, honesty and credibility, and must not harm the interests of the State and social public interests.
    The fourth China Securities Regulatory Commission and the Agency in accordance with the laws and administrative regulations, the provisions of these measures and the principle of prudent supervision, supervise and administer the operations of the Fund.
    Article fifth fund industry associations in accordance with the law and administrative regulations, the provisions of the China Securities Regulatory Commission and self-regulatory rules, self-regulation of Fund activities. Second chapter Fund of raised sixth article application raised Fund, intends any fund management people, and fund managed people should has following conditions: (a) intends any fund management people for law established of fund management company, intends any fund managed people for has Fund managed qualification of commercial banks; (ii) has meet China SFC provides of, and and management and managed intends raised Fund phase adapted of Fund Manager, business personnel; (three) Fund of investment management, and sales, and registration and valuation, business link system sound, behavior specification, Not exists effect Fund normal operation, and damage or may damage Fund share holds people lawful rights and interests of of case; (four) recently a years within no for illegal violations behavior by administrative punishment or criminal punishment; (five) No for illegal violations behavior is was regulatory institutions survey, or are in rectification during; (six) not exists on fund operation has caused or may caused bad effect of major change matters, or litigation, and arbitration, other major matters; (seven) not exists company governance not sound, and business management chaos, and
    Internal control and risk management system cannot get effective implementation, and financial status deterioration, major business risk; (eight) intends any fund management people Qian only allowed raised of Fund, Fund contract has entered into force, or raised term expires, cannot meet this approach 12th article provides of conditions, since returned all investment people has paid of payments and interest of day up has full six months; (nine) China SFC according to carefully regulatory principles provides of other conditions. Seventh article application raised Fund, intends raised of Fund should has following conditions: (a) has clear, and legal of investment direction; (ii) has clear of fund operation way; (three) meet China SFC on Fund varieties of provides; (four) not and intends any fund management people has management of fund similar; (five) Fund contract, and recruitment manual, legal file draft meet legal, and administrative regulations and China SFC of provides; (six) Fund name showed that Fund of category and investment features, not exists damage national interests, and
    Public interest, fraud and misleading investors, or other violations of the legal rights of others, (VII) other conditions stipulated by the CSRC based on prudent regulatory principles.
    Article eighth Fund Manager applications to raise funds, shall, in accordance with the securities investment fund law and application materials on the China Securities Regulatory Commission is due.
    Applications involve significant changes in the matter of the application materials, the Fund Manager shall, within five working days from the date of change submitted to the China Securities Regulatory Commission updates.
    The Nineth CSRC in accordance with the administrative licensing law and the securities investment fund law provisions of 39th, accept an application for fund raising, and review, make a decision.
    The tenth CSRC based on prudent regulatory principles, may appoint an expert to review the applications for fund raising.
    11th Fund raising period of fund units may not exceed three months from the date of sale.
    12th article fund raised term expires, raised of Fund share total meet securities investment fund method 44th article of provides, and has following conditions of, fund management people should according to provides handle inspection funding and fund record procedures: (a) Fund raised share total many Yu 200 million copies, fund raised amount not less than 200 million Yuan Yuan; (ii) Fund share holds people of number not less than 200 people.
    13th the CSRC since receiving the Fund Manager capital verification report and the archival materials of the Fund be confirmed in writing within three working days from the date of; from the date of written confirmation by the CSRC, Fund registration formalities completed, the Fund contract entered into force.
    Fund Manager shall on receipt of confirmation by the CSRC shall be announced the next day.
    Disclosure during the 14th fund-raising fees, accounting fees, Attorney's fees and other costs, shall not be paid from the Fund assets Fund charges a subscription fee, from subscription fees were charged.
    Chapter III Fund units subscription and redemption 15th open funds of funds should be stipulated in the contract, and set out in the prospectus share Fund Manager handling the Fund subscription and redemption dates of business (hereinafter referred to as the opening day) and time.
    16th open-ended fund the Fund contract may stipulate a Fund Manager since the Fund within a certain period after the effective date of the contract does not apply for redemption but agreed period shall not exceed three months, and should be set out in the prospectus. 17th open-end Fund subscription and redemption prices of shares, according to the subscription and redemption of fund units worth adding, subtracting the relevant costs.
    Shares of open-end Fund subscription and redemption prices calculation method should be in the Fund contract and set out in the prospectus. Net value of mutual fund shares, shall after the closure of each open day, date of the net asset value of the fund divided by the number of shares of the Fund balance calculation.
    Specific calculation methods shall be set out in the contract and prospectus of the Fund.
    The 18th Fund Manager shall not be in addition to the Fund contract date or time for the subscription and redemption of fund units, or conversion.
    Investors of the Fund contract date and time for subscription, redemption or conversion requests, next time its price of subscription and redemption of fund units for handling Fund units subscription and redemption time opening day price.
    19th when investors purchase fund shares, you must purchase amount in full, except for the Special Fund provided by the CSRC; investor payments, purchase applications shall be valid.
    20th the Fund Manager shall receive investors subscription and redemption applications within three working days of the date, and to confirm the validity of the subscription and redemption.
    Fund Manager shall receive investors effective redemption application within seven working days from the date of the payment of redemption money, except for the Special Fund provided by the CSRC.
    Open Fund 21st after the Fund contract may stipulate the Fund reaches a certain size, fund managers are no longer accepting applications for subscription or purchase, it should be stated in the prospectus. Fund Manager during the Fund raising may not adjust the scale of the Fund the Fund contract.
    After the entry into force of the Fund contract and fund management in accordance with the Fund contract agreement, adjusted the size of the Fund, but it should be 3rd notice in advance, and to update the prospectus.
    22nd open the Fund contract may be for a single fund share holders of fund shares or set the limit on the number, but should be set out in the prospectus.
    23rd single open-end Fund open day redemption applications for more than 10% of total share funds, huge redemptions.
    Occurrence of large redemption of open-end funds, fund managers go through the redemption of shares shall not be lower than the total share of the Fund on the day of the 10%, on the rest of the redemption applications may delay processing.
    The 24th occurrence of large redemption of open-end funds, Fund Manager for a single fund share holders of redemption request, shall in accordance with its application to redeem shares total share on applications for redemption, determine the date of a single fund share holders apply for redemption of shares. Holders can apply for redemption of fund units chosen to date has not been to lift the handle part.
    Set aside in the Fund share holders did not choose, Fund Manager to do work for a redemption of the share, could be delayed to the next open day, redemption price for the next opening day price.
    25th large redemption of open-end funds and extension handle, Fund Manager should be by mail, fax or other way of prospectus requirements, give the Fund share holders in three trading days, on the approach, at the same time specified shall be published on the newspapers and other media.
    26th series of large redemption of open-end funds, fund managers can be as stipulated in the contract and prospectus of the Fund to suspend accepting applications for redemption; has accepted the redemption application can delay the payment of redemption money, but delay period shall not exceed 20 working days and shall specify shall be published on the newspapers and other media.
    27th open fund the Fund contract may stipulate, a single fund share holders in a single day to apply for redemption of fund units over total share a certain percentage of the funds, fund managers may be suspended in accordance with the provisions of the present article 26th accept redemption application or delay payment.
    28th open funds should keep 5% not less than the net asset value of the Fund in cash or Government bonds maturity within a year, and for the payment of redemption money Fund share holders, but except for the Special Fund provided by the CSRC. Fourth chapter Fund of investment and returns distribution 29th article Fund contract and fund recruitment manual should according to following provides contains Ming Fund of category: (a) 60% above of Fund assets investment Yu stock of, for Stock Fund; (ii) 80% above of Fund assets investment Yu bonds of, for bonds Fund; (three) only investment Yu currency market tool of, for currency market Fund; (four) investment Yu stock, and bonds and currency market tool, and stock investment and bonds investment of proportion not meet subsection (a) items
    And (b) the provision, as mixed funds; (v) other fund categories prescribed by the CSRC.
    30th article, fund name investment, should be more than 80% of contents of non-cash assets belonging to the Fund investment direction. 31st article fund management people using Fund property for securities investment, shall not has following case: (a) a only fund holds a listed company of stock, its market over fund assets net of 10%; (ii) same fund management people management of all Fund holds a company issued of securities, over the securities of 10%; (three) Fund property participation stock issued purchase, single fund by declared of amount over the Fund of total assets,
    Single fund exceeds the number of shares to be issued stock declared by the the total number of issued shares of the company, (iv) breach of contracts on investments of the Fund, the proportion of investment strategies and investment agreement; (v) other circumstances prohibited by the CSRC.
    Full compliance with the relevant indexes can constitute a proportion of stock investment fund products not subject to the preceding paragraph (a), (b) the ratio limit.
    32nd the Fund Manager shall fund the Fund within six months after the effective date of the contract portfolio in line with the relevant Fund contracts agreed.
    Article 33rd due to fluctuation in the stock market and listed company mergers, fund the scale factors in addition to funds under the management of the investments of the Fund does not comply with the first paragraph of article 31st (a), (b) the prescribed percentage or proportion of contracted investment of the Fund, the Fund Manager shall, within ten days to adjust.
    34th article following and fund about of costs can from fund property in the expenditures: (a) Fund management people of management fee; (ii) Fund managed people of managed fee; (three) Fund contract entered into force Hou of information disclosure costs; (four) Fund contract entered into force Hou of Accountants fee and lawyer fee; (five) Fund share holds people Assembly costs; (six) Fund of securities trading costs; (seven) according to national about provides and Fund contract agreed, can in fund property in the expenditures of other costs.
    Article 35th of closed-end fund income distribution, not less than once a year, closed-end funds annual allocation ratio shall not be less than the annual earnings of 90%.
    Mutual fund distribution contract shall stipulate the annual income of the Fund of funds is the maximum number of minimum proportion of income and fund allocation.
    Article 36th Fund, allocation shall be made in cash.
    Open-end fund the Fund share holders can choose the allocation of cash receipts in advance and agreed upon in the contract for purchase of fund units of the Fund to fund share holder without having to make a choice of fund units, fund managers should be paid in cash.
    Fifth Fund share holders General Assembly 37th article, except the securities investment fund law the 71st article (a) to (e) of things, the Fund contract shall also be in accordance with the provisions of the China Securities Regulatory Commission, rights and obligations of the parties agreed to fund contract to have a significant impact, shall convene a general meeting of the holders of fund units to change the contract, among other matters. Article 38th Fund Trustees considered it necessary to convene the Fund share holders meeting should submit written proposals to the Fund Manager.
    The Fund Manager shall receive a written offer within 10th of deciding whether to convene, and shall inform the trustee of the Fund.
    Fund managers decide to convene, it shall issue a written decision within 60 days from the date of the convening; fund managers decided not to summon, fund trustees still considered necessary, should be allowed to convene. 39th represents shares 10% per cent of the funds of the Fund share holders felt the need of convening the general meeting of the holders of fund units, written proposal should be submitted to the Fund Manager.
    The Fund Manager shall receive a written offer within 10th of deciding whether to convene, share holders of the Fund proposal and shall inform the representatives and Trustees of the Fund.
    Fund managers decide to convene, shall issue a written decision within 60 days from the date held Fund Manager decided not to convene, on behalf of the fund shares 10% per cent of the Fund share holders are still considered it necessary to convene should be to the trustee of the Fund to submit written proposals.
    Fund Trustees shall from the date of receipt of the written proposal decide whether to convene in the 10th, proposal and shall inform the Fund share holders representatives and managers; convened by the custodian of the Fund shall issue a written decision within 60 days from the date of the convening.
    40th fund managers and fund trustees do not convene the general meeting of the holders of fund units, Fund share holders in accordance with the 72nd of the securities investment fund law provisions of the second paragraph of article itself convened general meeting of the holders of fund units.
    The Fund share holders convened general meeting of the holders of fund units on their own, should be at least 30th to the China Securities Regulatory Commission for the record.
    41st the Fund share holders themselves convene the general meeting of the holders of fund units according to law, and trustee of the Fund Manager, the Fund shall cooperate with and shall not obstruct, interfere.
    The 42nd General meeting of the holders of fund units in accordance with the Securities Investment Fund Law article 75th vote matters Convenor shall, from the date of the adoption in the 5th with CSRC approval or for the record.
    Share holders as decided by the Assembly of the Fund from the CSRC approved or issued without a dissenting opinion from the date of entry into force.
    Article 43rd Fund Manager, the Fund and the Fund share holders should be executed decisions of the general meeting of the holders of fund units.
    Sixth chapter of regulatory and legal liability article 44th open-end Fund of funds after the entry into force of the contract, the Fund share holders number less than 200 or worth less than 50 million yuan of Fund assets, the Fund Manager shall promptly report to the CSRC; 20 consecutive working days in the foregoing circumstances, the Fund Manager shall explain the reasons and submit solutions to the CSRC.
    45th the CSRC and its agencies to fund managers, fund trustees to engage in operational activities of the Fund undertake periodic or irregular inspection and shall cooperate with the Fund Manager, the Fund trustee.
    46th article fund management people, and fund managed people violation legal, and administrative regulations and this approach provides of, China SFC and sent institutions can ordered rectification, suspended handle related business; on directly is responsible for of competent personnel and other directly responsibility personnel, can take regulatory talk, and issued warning letter, and remember into integrity archives, and suspended perform positions, and finds for not suitable served as related positions who, administrative regulatory measures.
    47th fund managers, Fund custodians and their supervisor directly responsible for personnel and other persons directly responsible for violations of these rules in operational activities of the Fund, the China Securities Regulatory Commission in accordance with the laws and administrative regulations of the administrative punishment; does not so stipulate laws and administrative regulations, administrative penalties in accordance with the regulations; a suspected crime, transferred to the judicial organs according to law, investigation of his criminal responsibility.
    48th Fund Manager who contravenes the provisions of article 18th, in addition to the Fund contract date or time for the subscription and redemption of fund units, or conversion, 89th in accordance with the securities investment fund law provisions.
    49th Fund Manager who contravenes the provisions of article 31st, used for securities investment fund assets, according to the Securities Investment Fund Law 90th section punishment.
    50th fund management and custodian of the Fund in accordance with this article 38th, 39th of Fund share holders convened the General Assembly, in accordance with the 95th of the securities investment fund law provisions of the.
    51st applications for fund managers to raise funds to conceal relevant information or provide false materials, the China Securities Regulatory Commission was inadmissible; has been accepted, rejected, and a warning.
    52nd article fund management people engaged in fund operation activities, has following case one of 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: (a) not according to this approach 17th article of provides calculation Fund share purchase, and redemption price; (ii) not according to this approach 20th article of provides confirmed purchase, and redemption of effectiveness, and paid redemption payments;
    (Three) not according to this approach 23rd article second paragraph of provides handle redemption application; (four) not according to this approach 28th article of provides keep cash or Government bonds; (five) not according to this approach 33rd article of provides adjustment investment proportion; (six) not according to this approach 35th article, and 36th article of provides for returns distribution; (seven) not according to this approach 44th article of provides report, and description about situation, or submitted solution programme.
    53rd article fund management people, and fund managed people has following case one of 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: (a) not according to this approach 41st article provides tie Fund share holds people convened Fund share holds people Assembly; (ii) not according to this approach 42nd article of provides application approved or record Fund share holds people Assembly decided of matters;
    (C) is not in accordance with the provisions of the present article 43rd General Conference the entry into force of the Fund share holders and (iv) is not in accordance with the provisions of the present article 45th cooperate with the China Securities Regulatory Commission and its agencies to check.
                                      Seventh chapter supplementary articles article 54th these measures shall take effect on July 1, 2004.

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