The main contents of the Regulations include: First, implement the requirements of canceling the domestic securities investment quota of qualified foreign institutional investors and RMB qualified foreign institutional investors (hereinafter referred to as qualified investors), and register and manage the remittance and remittance of cross-border funds of qualified investors. The second is to implement the integrated management of local and foreign currencies, allowing qualified investors to choose the remittance currency and timing independently. Third, the procedures for remittance of domestic securities investment income of qualified investors are greatly simplified, and the requirements for special audit reports and tax filing forms of investment income issued by certified public accountants in China are cancelled and replaced by tax payment commitment letters. The fourth is to cancel the limit on the number of custodians, allow a single qualified investor to entrust multiple domestic custodians, and implement the main reporter system. The fifth is to improve the foreign exchange risk and investment risk management requirements of qualified investors' domestic securities investment. Sixth, the People's Bank of China and the foreign exchange bureau have strengthened post-event supervision.
At the same time, the central bank and the State Administration of Foreign Exchange announced policy questions and answers.
1. After the implementation of the new regulations, how will overseas institutional investors implement the main reporter system?
A: For qualified investors who only have QFII or RQFII qualifications, the original QFII custodian or the original RQFII main reporter is the main reporter by default, and there is no need to re-register. If there is any adjustment, the new chief declarer shall be entrusted to apply to the State Administration of Foreign Exchange for registration of change within 10 working days after the adjustment. For qualified investors with QFII and RQFII qualifications at the same time, a custodian shall be appointed as the chief reporter within 30 working days after the implementation of the new regulations, and the chief reporter shall be entrusted to apply to the State Administration of Foreign Exchange for change registration within 10 working days after the designation. Qualified investors should assist the new chief reporter to do a good job of connecting with other custodians' information submission. The relevant registration does not need to go to the site, and the chief reporter can choose to mail the materials required for registration to the State Administration of Foreign Exchange.
2. After the implementation of the new regulations, if the original QFII investors remit RMB or the original RQFII investors remit foreign currency to invest in domestic securities and futures, do they need to apply for a new product or business code before opening a new capital account?
A: After the implementation of the new regulations, if QFII only remits RMB to invest in domestic securities and futures, or QFII only remits foreign currency to invest in domestic securities and futures, it is not necessary to apply for a new product or business code. The custodian can continue to use the original product or business code of QFII, open corresponding accounts according to the requirements of the new regulations, and handle the remittance of funds and the declaration of international payments. For qualified investors with QFII and RQFII qualifications at the same time, their products or business codes shall be used in the original way.
3. How should qualified investors adjust their positions in foreign exchange derivatives to ensure that they conform to the principle of real trading in their operations?
A: QFII should adjust the position of foreign exchange derivatives within five working days at the beginning of each natural month according to the latest RMB assets corresponding to domestic securities investment at the end of last month. Qualified investors are obliged to inform the chief reporter of their foreign exchange derivative positions or total positions in different counterparties, and the chief reporter shall supervise the overall derivative positions of qualified investors in China to meet the principle of real demand trading.
4. What elements should 4.QFII issue a duty-paid commitment letter to remit accumulated income? What should the custodian do if he receives the tax commitment letter to remit the income for him?
A: The income remitted by qualified investors using the duty-paid commitment letter must be the accumulated profit that has made up for the losses in previous years. Qualified investors can choose to provide a duty payment commitment letter to the custodian who handles the remittance business for the part to be remitted before each remittance of income; You can also choose to provide the custodian with a one-time tax commitment letter of accumulated profits that can be remitted within a period of time (hereinafter referred to as "validity period"). No matter which commitment method is chosen to remit income, each tax commitment letter can only correspond to one custodian.
Where a QFII provides a one-time tax payment commitment letter, it shall indicate the accumulated profit remitted through the custodian within the validity period. When remitting subsequent profit funds for qualified investors, the custodian needs to compare each remittance amount with the corresponding accumulated profit amount within the validity period in the commitment letter to ensure that the remitted funds do not exceed the amount listed in the duty-paid commitment letter.
It should be clear that simplifying the remittance procedures of accumulated income realized by qualified investors will not affect their obligation to pay taxes in compliance with laws and regulations.
5. What obligations should the foreign exchange derivatives business agency perform when the QFII conducts foreign exchange derivatives transactions with the foreign exchange derivatives business agency?
A: Qualified investors and foreign exchange derivatives business agencies conduct foreign exchange derivatives transactions. When the foreign exchange derivatives contract expires, the custodian shall transfer foreign currency or RMB to the foreign exchange derivatives business agency according to the instructions of qualified investors, and receive RMB or foreign currency carried over by the foreign exchange derivatives business agency. Institutions handling foreign exchange derivatives business need to submit the information of "settlement and sale of foreign exchange accounts" to the foreign exchange bureau, and the relevant custodians should assist in providing foreign currency account numbers and other information. After choosing a foreign exchange derivatives business institution to conduct foreign exchange derivatives transactions, QFII has the obligation to coordinate relevant institutions and custodians to share the required information to meet the regulatory requirements and data reporting requirements.