Questions and Answers on Issues concerning the Registration and Recordation of Privately Offered Investment Funds (VII)

 2018-06-29  35


· Area of Law: Securities

· Level of Authority: Industry Regulations

· Date issued:11-23-2015

· Effective Date:11-23-2015

· Status: Effective

· Issuing Authority: Associations

 

Questions and Answers on Issues concerning the Registration and Recordation of Privately Offered Investment Funds (VII)
(November 23, 2015, Asset Management Association of China)
Question: When an institution conducting private lending, small-sum wealth management, crowd financing or any other business conducts the management of privately offered funds at the same time, how to register the management institution of privately offered funds?
Answer: In accordance with the requirements of the Interim Measures for the Supervision and Administration of Privately Offered Investment Funds (hereinafter referred to as the “Interim Measures”) on preventing conflicts of interest by the management institutions of privately offered funds, private lending, civil financing, allocation of funds, small-sum wealth management, petty loans, P2P/P2B, crowd financing, factoring, guarantee, real estate development, trading platforms and other businesses concurrently operated by applicants run conflict with the attributes of privately offered funds, and are apt to mislead investors. For the purpose of preventing risks, the Asset Management Association of China (“AMAC”) shall not register the aforesaid institutions which conduct any business in conflict with the business of privately offered funds. The aforesaid institution may apply for the registration of management institution of privately offered funds after forming an institution specially conducting the management of privately offered funds. If an institution formed with the approval of the financial regulatory authority conducts the aforesaid business of non-privately offered funds when conducting the management of privately offered funds, it shall establish business isolation rules correspondingly to prevent the conflicts of interest.
At the same time, for the purpose of carrying out the requirements of the Interim Measures for the professional management of management institutions of privately offered funds, the name and business scope of management institutions of privately offered funds shall contain relevant words such as “fund management,” “investment management,” “asset management,” “equity investment” and “venture capital investment,” and the AMAC shall not register the institutions of which the name and business scope do not contain relevant words such as “fund management,” “investment management,” “asset management,” “equity investment” and “venture capital investment.”
The registered management institution of privately offered funds shall make rectification according to the aforesaid requirements and the AMAC will conduct self-disciplinary management of management institutions of privately offered funds in non-compliance with requirements in the next step.
Question: What are the qualification requirements for senior executives conducting the business of privately offered securities investment funds and fund managers?
Answer: In accordance with Article 9 of the Securities Investment Fund Law, the employees conducting the business of privately offered securities investment funds shall be qualified for conducting the fund business. There is an answer on the methods for obtaining the qualification to conduct the fund business in the Questions and Answers on Issues concerning the Registration and Recordation of Privately Offered Funds (VI). If the management institution of privately offered funds applies for the first time for the qualification of management institution of privately offered securities investment funds, the management institution of private equity funds and management institution of venture capital investment funds applies for conducting the business of privately offered securities investment funds, such as being modified as the management institution of privately offered securities investment funds or the management institution of private equity funds and the management institution of venture capital investment funds, and conducting the business of privately offered securities investment funds at the same time, the senior executives and fund managers who conduct the business of privately offered securities investment funds shall be qualified for conducting the fund business.
Registered institutions shall, according to relevant provisions, conduct self-inspection on whether the employees conducting the business of privately offered securities investment funds are qualified for conducting the fund business, and in the next step, the AMAC will, in accordance with the provisions of the Fund Law, manage the qualifications and offer business training to fund employees, and require the institutions in non-compliance with the relevant requirements to make rectification.