Economic Observer Network reporter Hong Xiaotang On June 24, the China Securities Regulatory Commission issued the “Interim Regulations on the Management of Private Pension Investment in Public Offering of Securities Investment Funds” (hereinafter referred to as the “Interim Regulations”) to solicit public opinions.
This is a clearer plan for personal pension investment in financial products following the opinions of the General Office of the State Council on promoting the development of personal pensions.
The “Interim Regulations” further clarify the types and scales of investable funds, which are of great significance to the construction of my country’s personal third-pillar pension system and the source of long-term investment funds in the capital market.
Clarify the scope of the fund
According to the provisional regulations, the fund products that individual pension funds can invest in (hereinafter referred to as “individual pension funds”) must meet the pension target fund of not less than 50 million yuan at the end of the last four quarters. And should have stable investment style, clear investment strategy, good long-term performance, and stable operation, including stock funds, hybrid funds, bond funds, funds within funds and other funds specified by the China Securities Regulatory Commission that are suitable for long-term investment of personal pensions.
The China Securities Regulatory Commission stated that the relevant product list will be updated quarterly, dynamically adjusted and optimized, to stimulate the vitality of market participants, and to better serve the long-term preservation and appreciation of personal pensions.
According to statistics from wind statistics, as of June 24, 2022, there were a total of 150 funds containing “pension” and “targeted endowment” in the names of publicly offered FOFs, of which the scale of the last 4 quarters was not less than 50 million. Yuan’s funds include a total of 131 funds including Huaxia Pension 2040 Three Years, ICBC Pension 2035 Three Years, and GF Steady Pension Target One Year.
According to the provisional regulations, the above-mentioned pension target funds that meet the requirements can be preferentially included in the investment scope. It is worth noting that some low-risk products such as currency funds and interbank depository index funds have not been included in the scope of individual pension funds for the time being. This is also in line with the “Interim Regulations” insisting on making progress while maintaining stability. Individual pension funds “start with rights”, dynamically adjust and expand steadily.
In addition, the “Interim Provisions” clarified that the implementation will be implemented step by step in combination with the actual situation, and some cities will be tested for one year and then gradually rolled out.
Make rate concessions
In terms of rates, in order to encourage long-term investment behavior of participants, the “Interim Regulations” require individual pension funds to set up separate share categories, not to charge sales service fees, to exempt subscription restrictions, and to implement certain rate concessions for management fees and custody fees. Sales fees such as subscription fees are waived, and the income distribution method of dividend reinvestment is adopted.
At the same time, in order to encourage long-term and instalment collection behavior, fund managers can make special arrangements for investment strategy, income distribution, redemption mechanism, fund conversion, etc. Dividends, regular payments, fixed redemptions, etc.
The assessment period is not less than 5 years
In terms of product management, the “Interim Regulations” also require fund managers’ investment management and risk management.
Among them, in the process of investment management, fund managers should be conscientious, professional and prudent, combine the business characteristics of individual pension investment funds, adhere to long-term investment and value investment, and strengthen the asset allocation, investment targets, valuation methods, etc. of individual pension funds. Research and analysis on risk status, product performance, etc., to ensure scientific, robust and long-term investment management.
The fund manager shall establish an effective mechanism, strictly abide by the investment objectives, investment strategies and investment restrictions agreed in the fund contract, maintain a clear and stable investment style, and reasonably control the deviation of the investment portfolio from the performance comparison benchmark.
At the same time, the “Interim Regulations” mentioned that a long-term assessment mechanism should be established for fund managers and fund sales agencies, and the assessment cycle for individual pension investment fund business, product performance, and personnel performance should not be shorter than 5 years. Fund evaluation agencies shall adhere to the principle of long-term evaluation, the performance evaluation period shall not be shorter than 5 years, shall not use a single indicator for ranking or evaluation, and shall not conduct short-term income and scale rankings.
Sales Organization Threshold Requirements
During the implementation and development of the individual pension fund system, the sales agencies of individual pension funds also need to have strong individual investor services, compliance expertise and stable operation capabilities.
In view of the particularity, professionalism and long-term nature of the personal pension fund sales business, the “Interim Regulations” put forward specific requirements for participating fund sales institutions in terms of business indicators, corporate governance, compliance and internal control. This includes meeting the requirement that the holdings of stock funds and mixed funds should not be less than 20 billion yuan at the end of the last four quarters, and the scale of stock funds and mixed funds held by individual investors should not be less than 5 billion yuan. In addition, it is sound and complete in terms of corporate governance and internal control, and has not been subject to criminal penalties or major administrative penalties in the past three years; no major administrative supervision measures have been taken for similar businesses in the past one year; no major violations of laws and regulations are in the period of rectification, Or being investigated by regulatory agencies for suspected major violations of laws and regulations; there are no major changes that have affected or may affect the normal operation of the company, or major lawsuits, arbitrations and other matters.
At the same time, the “Interim Provisions” allow fund managers and their sales subsidiaries to handle the business related to the sales of individual pension funds raised by the managers. The list of sales agencies is updated quarterly. With the growth of the public fund industry and the growth in the sales volume of sales agencies, the number of qualified sales agencies will continue to increase.
Regarding the release of the “Interim Regulations”, GF Fund said,The first is to provide a clearer institutional arrangement for the public fund industry to serve the individual pension cause.The “Opinions on Promoting the Development of Individual Pensions” issued by the General Office of the State Council in April this year established the basic institutional framework for my country’s third pillar pension insurance; the timely release of the “Interim Provisions” clarified that public funds participate in individual pensions Jin’s institutional arrangements provide a clearer operational path for the development of related businesses.Second, it reflects a prudent and prudent development approach.The “Interim Regulations” clearly stipulate the style, performance, and scale of pension target funds that can be included in individual pensions, and set clear requirements for sales agencies in terms of business indicators, corporate governance, compliance and internal control, etc. protect the rights and interests of investors.The third is to reflect the industry concept of making profits for investors:For example, it is stipulated that individual pension funds will set up special shares, do not charge sales and service fees, and implement rate concessions for management fees and custody fees; in the future, fund managers will also follow the prescribed requirements. Mechanisms and other special arrangements have been made to fully benefit investors and attract more people to accept and participate in the investment of individual pension funds.The fourth is to put forward the long-term goal of further expanding the capacity.The “Interim Regulations” pointed out that during the pilot period, pension target funds are selected to be included in the investment scope of individual pensions. In the future, with the accumulation of experience and the maturity of conditions, more other types of public funds will be included in the investment scope, which will also help to improve the investment scope. Personal pension investment provides more abundant product choices.
“The regulator will implement directory management of individual pension funds and fund sales institutions, update them on the official website, fund industry platform, information platform, etc. at the end of each quarter, and will remove products or institutions that do not meet the regulations from time to time. This measure reflects The real-time and continuous supervision mechanism of the regulators for personal pension products has played an escort role in continuously ensuring the pension investment needs of the majority of investors.” GF Fund said.Return to Sohu, see more
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