Xinhua News Agency, Beijing, September 12 (Reporter Yao Junfang) The reporter learned from the China Securities Regulatory Commission that the China Securities Regulatory Commission recently solicited opinions on the "Regulations on Strengthening the Supervision of Private Investment Funds (Draft for Comment)."
The relevant person in charge of the China Securities Regulatory Commission stated that in recent years, while the private equity industry has developed rapidly, there are also some problems, such as public or disguised public raising of funds, evasion of qualified investor requirements, complicated group operations, capital pool operations, etc. There are illegal and criminal acts that seriously infringe the interests of investors, such as embezzlement and misappropriation of fund assets, and illegal fund-raising, and industry risks have gradually emerged.
In order to prevent and resolve risks in the private equity fund industry, protect the legitimate rights and interests of investors, and promote the standardized and sustainable development of the industry, the China Securities Regulatory Commission drafted the "Regulations on Strengthening the Supervision of Private Equity Investment Funds (Draft for Comment)."
The main content includes standardizing the name and business scope of private equity fund managers, strictly supervising group private equity fund managers, firmly keeping the bottom line of private equity fund raising from qualified investors, and strengthening the negative list of private equity fund managers’ practice behaviors. Clarify the negative list of private equity fund property investment, etc.
It is understood that the deadline for soliciting opinions and feedback is October 10, 2020. The China Securities Regulatory Commission will conduct serious research based on the public solicitation of opinions and publish it as soon as possible after further improvement.