Questions and Answers regarding Private Fund Registration and Recordation (XI)

 2018-06-27  53


· Area of Law: Securities

· Level of Authority: Industry Regulations

· Date issued:09-06-2016

· Effective Date:09-06-2016

· Status: Effective

· Issuing Authority: Associations

 

Questions and Answers regarding Private Fund Registration and Recordation (XI)
(Asset Management Association of China, September 6, 2016)
Question: If the senior executives of a private equity fund manager (including a venture capital fund manager) apply for fund business qualification determination by the Qualification Determination Committee in accordance with the Questions and Answers regarding Private Fund Registration and Recordation (IX) issued by the Asset Management Association of China (“AMAC”) on May 13, 2016, what other conditions should the applicants and recommenders meet? And under what circumstances should the recommenders be disqualified?
Answer: Based on the voting of the Qualification Determination Committee on the first two group of applicants, to ensure that the qualification determination plays a positive role of guidance, a person applying for qualification determination and his or her recommenders should have certain industry positions or social influence, and the applicant should be a senior industry figure. In addition, a recommender of the applicant should be disqualified under the following circumstances:
(1) The recommender is also an applicant in the same group for voting.
(2) The applicant and the recommender are mutually recommended.
(3) The recommender serves in the same institution as the applicant or in an affiliate or a branch office.
(4) The recommender has a business interest relationship with the applicant because of providing, among others, private fund outsourcing, auditing, legal, or rating services.
(5) The recommender currently engages in the supervision or self-regulation of private investment funds.
(6) The recommender has recommended three or more persons cumulatively within one year.
(7) The applicant to be recommended has violated any law or regulation, has received any administrative punishment, or has been subjected to any regulatory measure in the most recent three years.
After the completion of voting, the qualification determination results and the names and titles of relevant recommenders should be all published through the “Practitioner Management–Qualification Platform” on the website of the AMAC.
Question: In the Questions and Answers regarding Private Fund Registration and Recordation (IX), what does “engaged in economic and social administration” mean?
Answer: “Engaged in economic and social administration” primarily means work related to economy or finance at a government agency or a public institution, among others. In order for members of the Qualification Determination Committee to judge the applicants' professional competence in a fair and impartial manner, it is suggested that an applicant meeting the aforesaid conditions submit two recommendation letters signed by prominent figures in the industry, and the titles and contact information of the recommenders should be stated in the recommendation letters.