China Asset Management Association Cancels 96 Private Equity Fund Managers for Non-Management
Securities Times reporter Shen Ning
The China Asset Management Association recently announced the cancellation of 96 private equity fund managers for “cancellation without management for 12 months”. This marks the first time such a cancellation reason has been used by the association.
According to the China Asset Management Association website, the “12-month non-management cancellation” is a requirement set forth in the “Registration and Filing Measures for Private Equity Investment Funds”. If a private equity fund manager does not register a new fund within 12 months after liquidating all existing funds, the association has the authority to cancel their registration.
The announcement comes after the implementation of the “Private Investment Fund Registration and Filing Measures” last year, which aims to regulate the private equity industry and ensure compliance with registration and filing requirements.
Industry insiders suggest that the association has been sending notices to managers of funds without management for 12 months, urging them to either register a new fund or face cancellation. A total of 22,469 private equity fund managers have been canceled as of May 12, with 2,537 cancellations occurring in 2023 alone.
Zhu Jimi, general manager of Jiwei (Shanghai) Management Consulting Co., Ltd., believes that the industry is shifting towards a more selective approach in allowing new fund managers, focusing on companies with strong investment research capabilities and operational expertise.
As the industry continues to evolve, it is essential for private equity fund managers to stay informed of regulatory changes and ensure compliance with the association’s requirements to avoid any cancellations in the future.
(Editor: Wen Jing)