Beijing, 6 Jun (ZXS) -- The China Securities Regulatory Commission (CSRC) announced on 9 June that it has drafted the "Regulations on the Administration of Investment Advisory Business of Publicly Offered Securities Investment Funds" (hereinafter referred to as the "Provisions") to solicit opinions from the public.
The so-called fund investment advisory business refers to the business activities of providing fund investment advice to customers, assisting customers in making investment decisions or making investment decisions on behalf of customers. Among them, within the scope of customer authorization, the decision on fund variety, quantity and trading timing on behalf of the customer is the investment advisory business of managed funds.
In October 2019, the China Securities Regulatory Commission launched the pilot fund investment advisory business. According to official statistics, as of the end of March 10, a total of 2023 institutions have been included in the pilot, with service assets of 3.60 billion yuan and a total of 1464.524 million customers.
The person in charge of the relevant department of the China Securities Regulatory Commission said that from the perspective of the pilot development, the fund investment advisory business has run smoothly, the business adaptability and development prospects have been generally recognized and supported by all parties in the market, and the pilot has achieved the expected purpose and has basically met the conditions for turning to normal. Market institutions and investors generally believe that promoting the transformation of fund investment advisory business into a regular is conducive to cultivating professional buyer intermediary forces, improving investor services and returns, optimizing the capital structure of the capital market, and promoting the high-quality development of the fund industry.
The person in charge said that the CSRC drafted the "Provisions" to further improve the legal system of securities fund investment consulting business, clarify the specific specifications and regulatory rules for fund investment consulting business, and provide a strong legal guarantee for the long-term, standardized and healthy development of this business.
The main contents of the Provisions include: First, follow the normative principles of "investment" activities during the pilot period and strengthen the supervision of the investment link.
Among them, for a single fund investment advisory institution, all managed customers shall not allocate more than 50% of the total share of the fund, and the money market fund and open-end bond fund shall not exceed 20%, and at the same time, the manager is required to do a good job in monitoring and liquidity management, and inform the fund investment advisory institution when the proportion is close to the upper limit.
The second is to strengthen the supervision of "advisory" services, urge and guide the industry to adhere to the origin of "advisory" services, and strengthen investor suitability and service matching management.
The third is to make up for the shortcomings of supervision in response to new problems and new situations, and promote the orderly development of business compliance. For example, it clarifies the normative requirements for investment advisory institutions to allocate products other than public funds, and exempts fund practitioners other than fund managers from the lock-up period when investing in the company's funds. (End)