China Securities Regulatory Commission, Questions Relevant to the Examination and Approval for the Establishment of Securities Investment Funds Circular

Issued: November 26 2002
Effective: as of date of issue

Main contents: Section One relates to the submission of application materials. It requires founders of closed-end funds to conclude a fund-establishment agreement entrusting the fund manager the task of submitting application materials to the China Securities Regulatory Commission (CSRC). Managers of open-end funds shall directly submit the required materials. Section Three states that the CSRC will assess the fund application's compliance with regulatory requirements, with emphasis placed on the legal documents, including risk disclosure and mechanisms protecting the interests of fund holders. If the CSRC finds that the application meets regulatory requirements, it will appoint a specialist appraisal committee to assess the fund application. The CSRC will issue its final approval or disapproval within 60 days from the date of acceptance of the application. Section Four requires fund managers and fund distributors to conduct a sales assessment within seven days after the establishment of new investment funds and submit a report accompanied with the fund advertising materials. Appended to the Circular are two sets of contents and formats for the application materials for the establishment of open-end and closed-end funds.
Related legislation: Administration of Securities Investment Funds Tentative Procedures, Nov 14 1997, CLP 1997 No.2 p27 and Pilot Projects for Open-ended Securities Investment Funds Procedures, Oct 8 2000, CLP 2000 No.9 p7
Repealed legislation: Questions Relevant to the Application for Establishment of Securities Investment Funds Circular, Dec 12 1997