In order to strengthen the self-regulatory management of private securities investment funds, further regulate the business of private securities investment funds, protect the legitimate rights and interests of investors, and promote the standardized development of the private securities investment fund industry, the Asset Management Association of China drafted the “Guidelines for the Operation of Private Securities Investment Funds”. The “Operation Guidelines” has a total of 32 articles, and puts forward normative requirements for the raising, investment, operation and management of private securities investment funds. A few days ago, the China Foundation Association publicly solicited opinions from the public on the “Operation Guidelines”, and the deadline for feedback is May 12.
Strictly control the recruitment conditions
In terms of fundraising requirements, the “Operation Guidelines” specify that the initial fundraising and surviving scale of private equity investment funds should not be less than 10 million yuan, which is in line with the “Private Equity Investment Fund Registration and Filing Measures”. The fund contract should clearly stipulate that, except for changes in the net value caused by market fluctuations, if the net asset value of the fund falls below 10 million yuan for 60 consecutive trading days, the private securities investment fund will enter the liquidation process.
At the same time, the “Operation Guidelines” emphasize the prohibition of channel business. Private equity fund managers should review the compliance of investors’ fund sources. Investors or their designated third parties are not allowed to issue investment orders or be responsible for investment operations by themselves, and they are not allowed to act for financial institutions. , other private equity fund managers, asset management products of financial institutions, and other private equity funds provide channel services to avoid regulatory requirements such as investment scope, leverage constraints, and investor thresholds.
In addition, the “Operational Guidelines” strengthen the requirements for the suitability of investors; standardize the management of subscription and redemption, and require that the frequency of open subscription and redemption of private securities investment funds should not be higher than once a month; it is clear that the fund contract should stipulate that the investor’s shares should be locked for no less than 6 months Periodic arrangements; private securities investment funds are required to prudently set warning lines, stop loss lines and relevant arrangements after triggering.
Concentrated betting investment is limited
In terms of investment requirements, the “Operational Guidelines” proposes basic investment management requirements centered on portfolio investment, restricts the proportion of investment in a single asset, and clarifies that private equity funds should carry out derivatives transactions with the goals of risk management and asset allocation. Layer nesting, limit the total assets shall not exceed 200% of the fund’s net assets, etc.
Specifically, the funds invested in the same asset by a single private equity investment fund shall not exceed 25% of the fund’s net assets; the funds invested in the same asset by all private equity investment funds managed by the same private equity fund manager shall not exceed 25% of.
The total number of stocks issued by a single listed company held by the private equity fund manager’s own funds, all private securities investment funds under management, and asset management products managed by investment consultants controlled by the same actual controller shall not exceed the number of tradable shares of the listed company. 30%, unless otherwise stipulated by the China Securities Regulatory Commission and the China Foundation Association.
The “Operational Guidelines” reiterates and clearly regulates bond investment behavior, requires diversification of investment, and promotes standardized operations. The funds invested by a single private securities investment fund in the same bond shall not exceed 10% of the fund’s net assets. The amount of all private securities investment funds managed by a private equity fund manager investing in the same bond shall not exceed 10% of the outstanding amount of the bond. A single private securities investment fund’s total investment in bonds issued by the same issuer and its related parties shall not exceed 25% of the fund’s net assets. The total amount of all private securities investment funds managed by a private equity fund manager investing in bonds issued by the same issuer and its related parties shall not exceed 25% of the outstanding number of relevant bonds.
In addition, the structure of private securities investment funds should be clear and transparent, and regulatory requirements must not be circumvented by setting up complex structures and multi-layer nesting. Where a private securities investment fund invests in other private securities investment funds or asset management products issued by financial institutions, it shall clearly agree that the invested private securities investment fund or asset management product shall not invest in other private securities investment funds or other private securities investment funds other than publicly offered funds. asset management products.
Provide adequate transitional arrangements
In terms of operational management requirements, the “Operation Guidelines” require private securities investment fund managers to establish and improve internal systems, follow the principles of prioritizing investors’ interests and fair trade, and prevent the transfer of benefits; compact the custodian’s investment supervision responsibilities, and submit information as required; Managers of private securities investment funds above designated size regularly conduct stress tests and establish a risk reserve system; further refine the information disclosure requirements for the investment operations of private securities investment funds (such as special transactions such as derivatives and overseas assets); Information submission requirements for securities investment fund managers and privately offered securities investment funds.
After the implementation of the “Operation Guidelines”, newly filed private securities investment funds shall be implemented in accordance with the requirements of the “Operation Guidelines”. At the same time, in order to reduce the arbitrage space for new and old funds, different rectification requirements are put forward for existing funds according to different situations, and sufficient transitional arrangements are given for the rectification of key terms.
For existing funds that violate the investment scope requirements, conduct channel business, and do not meet the bottom-line requirements such as the minimum surviving scale, after the implementation of the “Operation Guidelines”, no new fundraising scale and investors shall be added, and the period shall not be extended. The acquisition of new investment activities must comply with the “Operation Guidelines” The Guidelines require that contracts be liquidated upon expiration.
For those that do not meet the investment requirements in the “Operational Guidelines” on investment concentration, nesting layers, leverage ratios, bond and derivative transactions, etc., a 12-month rectification transition period is given, and the fund contract is not required to be amended. After the implementation of the “Operational Guidelines”, investors newly raised by stock funds are required to set a share lock-up period of not less than 6 months.
For existing funds, if the fund contract is changed, the content after the change shall comply with the requirements of the “Operation Guidelines”; if the duration of the fund contract changes, the fund contract shall be amended in accordance with the “Operation Guidelines”. For private securities investment funds with no fixed duration among stock funds, it is required to revise the fund contract within 12 months after the implementation of the “Operation Guidelines”, and agree on a clear fund duration, so as to promote the rectification of the current stock perpetual funds within a time limit.
Disclaimer: The Securities Times strives for truthful and accurate information, and the content mentioned in the article is for reference only and does not constitute substantive investment advice, so operate at your own risk
Download the “Securities Times” official APP, or follow the official WeChat public account, you can keep abreast of stock market trends, gain insights into policy information, and seize wealth opportunities.