Legislation roundup: Anti-money laundering, securities trading model and MOM
February 28, 2019 | BY
Susan MokAnti-money laundering and anti-terrorist financing is targeted at funding of new financial institutions, securities fund trading is required to be conducted through securities companies and CSRC regulates manager of manager products
Banking
China Banking and Insurance Regulatory Commission, Measures for the Administration of Anti-money Laundering and Anti-terrorist Financing by Banking Financial Institutions
The banking regulator shall, in the course of its market access work, conduct stringent background checks of the promoter, shareholders, de facto controller, ultimate beneficiaries, directors and senior officers, review the sources and channels of the funds and block the criminals at the source from engaging in money laundering or terrorist financing activities by establishing an organization.
See the digest for more details.
Further reading
Capital Markets
China Securities Regulatory Commission, Circular on Matters Relevant to Changing the Securities Trading Model of Newly Established Public Fund Managers
Where the various products managed by a new public fund manager participate in trading on a securities exchange, such manager shall engage a securities company to handle the same.
China Securities Regulatory Commission, Guidelines for the Manager of Manager (MOM) Products of Securities and Fund Operators (Draft for Comments)
The parent manager shall, in light of asset management requirements, divide the assets underlying a MOM product into several asset sub-units and open in accordance with provisions an independent securities or futures sub-account for each asset sub-unit. A sub-manager shall provide investment advice or issue investment instructions for a specific asset sub-unit to the extent of its specified authority, and the parent manager shall render the investment decisions and be responsible for execution of the transactions.
Further reading
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