China Securities Regulatory Commission, Measures on Trial Business of Asset Management for Specific Clients of Fund Management Companies

中国证券监督管理委员会基金管理公司特定客户资产管理业务试点办法

October 12, 2011 | BY

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Entry thresholds lowered for fund management companies engaging in dedicated asset management.

Clp Reference: 3700/11.08.25 Promulgated: 2011-08-25 Effective: 2011-10-01

Promulgated: August 25 2011
Effective: October 1 2011

Applicability: These Measures apply to activities whereby a fund management company raises funds or accepts property from specific clients and acts as the asset manager, with a commercial bank acting as the asset custodians, and conducts securities investment using the entrusted property for the interests of the entrusting parties (Article 2).

Main contents: The business of asset management for specific clients of fund management companies may be conducted in the following formats:

(i) specific asset management business for a single client; or

(ii) specific asset management business for multiple specific clients (Article 7).

Fund management companies that fulfil the following requirements may engage in specific asset management business upon approval of the China Securities Regulatory Commission:

(i) having compliant business operations;

(ii) having the appropriate professionals;

(iii) having formulated effective business rules and measures;

(iv) having set up a fair trading administrative system; and

(v) having set up effective investment monitoring and reporting systems (Article 8).

In regards to specific asset management business for a single client, the initial assets entrusted by the client shall be at least Rmb30 million (Article 9). Where a fund management company conducts specific asset management business for multiple clients, the number of entrusting parties for a single asset management plan may not exceed 200, and the initial aggregate amount of assets entrusted by clients shall be at least Rmb30 million (Article 11). The property entrusted by clients may be invested in stocks, bonds, securities investment funds, central bank paper, short-term financing bills, asset-backed securities, financial derivatives and commodity futures (Article 21).

Related legislation: PRC Securities Investment Fund Law, Oct 28 2003, CLP 2003 No.10 p.43

Repealed legislation: Measures on Pilot Business of Asset Management for Specific Clients of Fund Management Companies, Nov 29 2007; Circular on Issues Relevant to the Implementation of the , Nov 29 2007; Provisions on Issues Relevant to the Engagement in the Business of Asset Management for Multiple Specific Clients by Fund Management Companies, May 5 2009

clp reference:3700/11.08.25promulgated:2011-08-25effective:2011-10-01

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