CSRC Issues New Regulations on Funds Management
The China Securities Regulatory Commission (CSRC) on Monday issued a batch of regulations on funds management covering special deposit accounts, funds sales and guaranteed funds, signaling that China’s top securities regulator has turned its focus from threshold regulation to follow-up supervision, the 21st Century Business Herald reported on Tuesday.
The regulator abandoned the requirement for fund companies to have a two-year investment record, net assets of 200 million yuan ($29.88 million) and assets under management of 20 billion yuan, as a way to lower the threshold for fund companies to conduct business.
The new regulations also encouraged more institutions to participate in funds sales by lowering the threshold in terms of types of organizations, investors, registered capital and personnel requirements.
In addition, the regulator also endowed more flexibility on guaranteed funds to invest in index futures, according to the report.
The release of the new regulations was regarded as a move to push the marketization of the fund industry in China, the newspaper said.
Source: China Daily