China Securities Regulatory Commission, Measures on the Pilot Asset Management Business of Futures Companies

中国证券监督管理委员会期货公司资产管理业务试点办法

September 11, 2012 | BY

CLP Temp &

Futures companies allowed to tap into the wealth management business.

Clp Reference: 3700/12.07.31 Promulgated: 2012-07-31 Effective: 2012-09-01

Promulgated: July 31 2012

Effective: September 1 2012

Applicability: The term “asset management business” refers to the business activities whereby a futures company accepts the entrustment by a single or specific multiple clients in writing in accordance with these Measures and the contract, uses the client's entrusted assets to carry out investment, and collects fees or remuneration in accordance with the contract (Article 2).

The specific provisions for the engagement in the asset management business by futures companies upon entrustment of specific multiple clients shall be separately formulated by the China Securities Regulatory Commission (Article 51).

Main contents: A futures company that fulfils certain criteria may apply for the qualification to participate in the pilot asset management business, including:

(i) having net capital of at least Rmb500 million;

(ii) its risk regulatory indicators during the six months before the application date continuously complying with regulatory requirements; and

(iii) its most recent two regulatory ratings of futures companies by category being not lower than Grade B of Category B (Article 6).

The initial entrusted assets of single clients shall be at least Rmb1 million (Article 9).

The scope of investment for the asset management business includes:

(i) futures, options and other financial derivatives; and

(ii) shares, bonds, securities investment funds, pooled asset management plans, central bank paper, short-term financing bills and asset-backed securities (Article 12).

Related legislation: Regulations for the Administration of Futures Trading (Revised)

clp reference:3700/12.07.31 promulgated:2012-07-31 effective:2012-09-01

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