China Securities Regulatory Commission, Measures for the Pilot Specific Client Asset Management Business of Fund Management Companies (Amended)
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 (修订)
October 11, 2012 | BY
clpstaff &clp articles &Wealth management plans of fund management companies allowed to invest in non-listed equity.
Promulgated: September 26 2012
Effective: November 1 2012
Applicability: Where a fund management company raises funds from specific clients or serves as asset manager for property entrusted to it by specific clients, with a custodial organisation serving as asset custodian, and uses the entrusted property to carry out investment activities in the interests of the parties that entrust the assets, these Measures shall apply (Article 2).
The engagement by an asset manager in specific asset management business through the establishment of asset management plans may take either of the forms set forth below:
(1) carrying out specific asset management business for a single client; or
(2) carrying out specific asset management business for specific multiple clients (Article 8).
Assets in an asset management plan shall be used to make investments in the following:
(1) cash, bank deposits, stocks, bonds, securities investment funds, central bank bills, non-financial enterprise debt financing instruments, asset-backed securities, commodities futures and other financial derivatives;
(2) equity, bonds and other property rights that have not been transferred through a stock exchange;
(3) other assets as approved by the CSRC (Article 9).
When launching specific asset management business, a fund management company shall establish a business department or a subsidiary specifically for that purpose (Article 10).
When handling specific asset management business for a single client, the initial assets entrusted by the client may not be less than Rmb30 million (Article 11).
When handling specific asset management business for multiple clients, the asset manager shall sell asset management plans to qualified specific clients.
For the purposes of the foregoing paragraph, the term “qualified specific client” means a natural person, legal person, lawfully established organisation or other specific client recognised by the CSRC that entrusts an initial amount of not less than Rmb1 million for investment in a single asset management plan and that can identify, evaluate and bear the attendant investment risks (Article 12).
Unless otherwise provided by the CSRC: when an asset manager handles specific asset management business for multiple clients, the entrusting parties for a single asset management plan may not exceed 200; however, there is no limit on the number of investors that entrust an amount of at least Rmb3 million; the total of the initial assets entrusted by the clients may not be less than Rmb30 million but may not exceed Rmb5 billion (Article 13).
Related legislation: Measures for the Administration of Securities Investment Fund Management Companies (Amended), Sep 20 2012; and Provisions on Issues Relevant to the Implementation of the «Measures for the Administration of Securities Investment Fund Management Companies», Sep 20 2012
clp reference:3700/12.09.26promulgated:2012-09-26effective:2012-11-01This premium content is reserved for
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