China Securities Regulatory Commission, Tentative Provisions for the Administration of the Subsidiaries of Securities Investment Fund Management Companies

Promulgated: October 29 2012
Effective: November 1 2012

Applicability: For the purposes of these Regulations, the term “subsidiary” means a limited liability company that is established in accordance with the Company Law, that is controlled by a fund management company and that engages in specific client asset management, fund sale and other business permitted by the China Securities Regulatory Commission (CSRC) (Article 2).

These Regulations shall apply where a fund management company secures control of a subsidiary by virtue of an acquisition, equity subscription, etc. The establishment of an offshore subsidiary by a fund management company shall be handled in accordance with relevant provisions (Article 38).

Main contents: Subject to the approval of the CSRC, a fund management company may establish a wholly-owned subsidiary or may, with other investors, jointly contribute to and establish a subsidiary (Article 7).