Funds: Heading in the right direction
The revised sale of securities investment funds measures introduce more competition by loosening qualification restrictions and allowing new entrants flexibility in compensation structures for value-added services
Issue: October 2011
Keywords (click to search):
investment funds
sale
securities
Allbright
Although the original Measures for the Administration of the Sale of Securities Investment Funds (证券投资基金销售管理办法) (the Measures) have only been in effect since 2004, like many other seven-year-old regulations in the quickly developing country, these regulations are already considered by many to be antiquated and ripe for an overhaul. China’s fund industry, with assets under management attaining Rmb2.4 trillion (US$356 billion) by the third quarter of 2010 and projected to reach Rmb3 trillion (US$449.3 billion) by the end of 2011, has quickly outstripped the regulations governing it. Accordingly the China Securities Regulatory Commission (CSRC) had to introduce a revised version of the Measures.
The CSRC began revising the 2004 Measures at the beginning of 2008, and during the drafting process consulted quite a number of professional firms such as the Securities Association of China, fund management companies, commercial banks, securities companies, and securities investment consulting...
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