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Provisions of the China Securities Regulatory Commission on Investment in Securities Investment Funds by Fund Practitioners
released by£ºadmin Time£º2012-9-6 15:37:00 Read£º3480Time

Regulating Securities Investment Funds by Fund Practitioners
By China Securities Regulatory Commission
Promulgation time 2012-06-12
Provisions of the China Securities Regulatory Commission on Investment in Securities Investment Funds by Fund Practitioners was published on June 12, 2012
These provisions aim at regulating the investment in securities investment funds by fund practitioners of fund management companies and the fund custodian departments of banks serving as fund custodians, and safeguarding the legitimate rights and interests of fund shareholders.
In recent years of development, China's securities investment fund expanded gradually. Along with the development of the fund sales institutions, the supervision system also develops gradually: on one hand, the legal regulations system has been improved, on the other hand, the supervision mechanism develops gradually. In practice, numerous institutions including commercial banks, securities companies, and securities investment consulting institutions wish to participate in fund sales business from the aspect of meeting customer demand and developing own financial business. However, the application of some agencies are limited because they were subjected to administrative penalties in the last three years, of which the reasons do not constitute substantial obstacles in fund sales business.
Furthermore, these provisions require fund management companies to establish an interest between fund practitioners and fund shareholders, to strictly abide by the investment fund lock regularly, to submit truthful, accurate, complete and timely report and record of the investment fund information, improve the transparency of investment fund information and guard against conflict of interest and transfer of benefits.      


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