Carrying out private equity business without registration, buying "shells" and selling "shells" is repeatedly prohibited... On July 19, Shenzhen Securities Regulatory Bureau notified the latest issue of Shenzhen private equity fund supervision.
Recently, Shenzhen Securities Regulatory Bureau found that some institutions in the jurisdiction violated the Securities Investment Fund Law and the Interim Measures for the Supervision and Administration of Private Investment Funds (hereinafter referred to as the Interim Measures) through risk investigations, complaints and reports, etc. The private equity fund business clearly stipulates that some registered private equity institutions use limited partnerships that have not been registered with the China Foundation Association to raise funds, and even carry out illegal fundraising and other criminal activities, which seriously infringes the legitimate rights and interests of investors and damages the image of the private equity fund industry.
To this end, Shenzhen Securities Regulatory Bureau notified three types of typical problems.
One is to carry out private placement business without registration.
The Shenzhen Securities Regulatory Bureau stated that some institutions have raised funds in the name of "funds" and "fund management" without being registered as private equity fund managers to carry out private equity business.
Some investment companies publicly raise funds in the form of guaranteed principal and income, and are suspected of engaging in illegal fund-raising and other criminal activities.
Individual illegal institutions and personnel set up names similar to well-known financial institutions, or use registered companies to carry out publicity, deceive and mislead investors, and use POS machines to swipe cards to collect investment funds, which makes it difficult for investors to protect their rights and trace funds, and seriously damage investors. Legitimate rights and the order of the private equity fund industry.
The second is the repeated prohibition of buying and selling "shells".
Some registered private equity institutions know that others are not registered as private equity fund managers and may engage in illegal activities such as over-the-counter fundraising and illegal fundraising, but they still sell or lend their companies to others in violation of regulations.
Some private equity institutions continue to raise funds by buying "shells" and borrowing "shells" to deceive investors after their manager qualifications have been cancelled.
Some illegal intermediaries are engaged in recruiting affiliated personnel, buying and selling shells by private equity institutions, and issuing legal opinions on behalf of law firms, which seriously violate the laws and regulations of private equity funds and affect the social image of the private equity industry.
The third is that private fund managers manage unrecorded private funds.
After some private equity fund managers complete the fundraising, they start investing without going through the filing procedures at the China Foundation Association.
Some private equity fund managers use limited partnerships established by others to raise funds to avoid supervision.
Some private equity fund managers collect non-qualified investors into limited partnership enterprises, and then invest in private equity funds that have been registered, to avoid the requirements of qualified investors, and to achieve illegal purposes such as circular fundraising, breaking the 200-person limit, and preparing more for less.
In this regard, the Shenzhen Securities Regulatory Bureau stated that the registration of private fund managers and the filing of fund products are the basic requirements for compliant operations.
All private equity fund managers should improve their awareness of compliance, and in accordance with relevant regulations, earnestly fulfill the obligations of manager registration and fund filing, and prevent the risks of violations of laws and regulations.
Without registration, any institution shall not engage in private equity fund business, and shall not use the words "fund" and "fund management".
After all types of private equity funds are raised, the private equity fund manager shall go through the fund filing procedures within 20 working days in accordance with the provisions of the China Foundation Association.
For private equity fund managers to transfer equity, they should go through the transfer registration procedures with the market supervision department and change the registration information in the China Foundation Association, and are not allowed to buy and sell "shells" privately.
Before a private equity fund completes the filing, it shall not operate the fund property for investment except for the purpose of cash management.
Private fund managers are not allowed to manage unrecorded private funds.
In addition, it is necessary to strictly perform the obligation of appropriate management, and at the same time, timely clean up the "shell" enterprises.
Shenzhen Securities Regulatory Bureau also reminds investors: to establish compliance awareness, prudently verify the registration information and compliance integrity information of private equity fund managers before purchasing private equity funds; when transferring investment funds, carefully check the counterparty’s bank account; After the remittance, timely understand the filing information of the subscribed private funds, and urge the private fund managers to go through the private fund filing procedures in a timely manner.
Adhere to rational investment and choose private funds that match your risk tolerance.
To improve risk awareness, consciously resist the temptation of gimmicks such as "guaranteing principal and profit", "high-yield without risk" and "get rich quick".
Author: Android