China Securities Regulatory Commission, Tentative Measures for the Administration of the Business of Evaluation of Securities Investment Funds
中国证券监督管理委员会证券投资基金评价业务管理暂行办法
December 08, 2009 | BY
clpstaff &clp articles &CSRC bans the rating of funds under three years of age.
Promulgated: November 6 2009
Effective: January 1 2010
Applicability: The Measures apply to the evaluation of securities investment funds (Funds) by Fund evaluation organisations and the dissemination of the results thereof through public means. They do not apply to Fund evaluation organisations that only disseminate Fund evaluation results through private means. Such organisations shall conclude an agreement with parties that use the results to forbid the public disclosure thereof (Article 2).
The term “Fund evaluation business” refers to the rating, prize awarding, ranking based on a single indicator and other evaluation activities as determined by the China Securities Regulatory Commission on the investment returns and risks of Funds or the management capabilities of Fund managers by Fund evaluation organisations and their evaluation personnel.
The term “rating” refers to the comprehensive analysis on the investment returns and risks of Funds or the management capabilities of Fund managers by Fund evaluation organisations and their evaluation personnel using specific methods, and the presentation of the analysis results using symbols with specific meanings, figures or texts.
The term “public means” refers to the dissemination of Fund evaluation results to non-specific targets through mass media such as newspapers, periodicals, radio stations, television stations and the internet, or through seminars, briefings, workshops, computer terminals, telephone, facsimile, electronic mail and text messages (Article 3).
Main contents: Organisations that engage in Fund evaluation business and disseminate the evaluation results through public means may not:
(1) rate Funds within the same category that consists of less than 10 Funds or rank such Funds based on a single indicator;
(2) award prizes for or rank based on a single indicator Funds (except money market Funds) whose contracts have been effective for less than six months;
(3) rate Funds (except money market Funds) or Fund managers the rating period of which is less than 36 months;
(4) update the ratings of Funds or Fund managers in less than three months; or
(5) update the rankings of Funds or Fund managers based on a single indicator in less than one month (Article 14).
Related legislation: PRC Securities Law (Amended) , Oct 27 2005, CLP 2006 No.1 p.31; and PRC Securities Investment Fund Law , Oct 28 2003, CLP 2003 No.10 p.43
clp reference:3700/09.11.06promulgated:2009-11-06effective:2010-01-01This premium content is reserved for
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