China Securities Regulatory Commission, Issues Relevant to Further Improving the Examination and Approval Procedure for Securities Investment Fund Offering Application Circular

Issued: June 16 2005
Effective: as of date of issue

Main contents: Fund offering applications submitted by compliant fund management companies with strong investment research capacity and good market reputation are not subject to evaluation of the fund expert evaluation committee, except for the following circumstances: (1) fund management companies that have been established and operating for less than one year; (2) fund products with a higher degree of innovation; (3) fund products whose design requires further improvement and need to refer to the evaluation opinion of the fund expert evaluation committee; (4) other circumstances under which the China Securities Regulatory Commission, based on the principle of prudent regulation, deems it necessary to be evaluated by the fund expert evaluation committee (Section Two). Other fund management companies are prohibited from copying or imitating fund products with significant innovation and whose fund offering applications have been verified by the China Securities Regulatory Commission, within a period specified by the China Securities Regulatory Commission (Section Three).
Related legislation: PRC Securities Investment Fund Law, Oct 28 2003, CLP 2003 No.10 p.43; Administration of Securities Investment Fund Operations Procedures, Jun 29 2004, CLP 2004 No.89 p.63; Administration of the Professional Consultants Committee for Securities Investment Funds Tentative Procedures, 2003 and China Securities Regulatory Commission, Implementing Procedure for Administrative Licensing Provisions (Trial Implementation)