China Securities Regulatory Commission, Measures for the Administration of the Sale of Securities Investment Funds (Revised)

Applicability: The term “sale of securities investment funds (Funds)” includes activities by Fund sales institutions such as publicity for, and promotion of, Funds, sale of shares of Funds and carrying out of the procedures for the purchase and redemption of shares of Funds. The term “Fund sales institutions” refers to Fund managers and other institutions recognised by the China Securities Regulatory Commission (the CSRC) (Article 2).

Main contents: Commercial banks (including foreign-funded banks with legal personality in China), securities companies, securities investment consulting firms, independent Fund sales institutions and other institutions specified by the CSRC may apply to the CSRC for Fund sales business qualifications (Article 8). An independent Fund sales institution may specialise in the sale of Fund and other wealth management products. When applying for Fund sales business qualifications, it shall have registered capital or capital contributions of not less than Rmb20 million, which must be in the form of paid-in monetary capital.

A new part on the payment and settlement of Fund sales is included in the revised Measures. A Fund sales institution, Fund payment and settlement institution or Fund registration institution may open a dedicated Fund settlement account with a commercial bank that has Fund sales business qualifications or a designated commercial bank that engages in the depository business for customer transaction settlement funds (Article 27).