At 22:39 on the evening of the 20th, the China Securities Regulatory Commission issued the "Administrative Measures for the Private Equity Asset Management Business of Securities and Futures Business Institutions (Draft for Comments)", ushering in the third asset management rules for the market.

Let’s take a closer look at the important changes in the private equity asset management business of securities and futures operating institutions.

Let’s take a closer look at the important changes in the private equity asset management business of securities and futures operating institutions.

The first is to unify the regulatory rules for the private equity asset management business of various securities and futures operating institutions such as securities companies, fund management companies, futures companies and their subsidiaries, and eliminate regulatory arbitrage. All securities and futures operating institutions engaged in private equity business All need to be approved. The original futures asset management company was registered with the association and should be adjusted.

The second is to allow investment in non-standard assets. Therefore, securities companies should be able to invest in non-standard products. Futures companies were not allowed to invest in non-standard products before, and they should not be able to invest in non-standard products now. The parent company and subsidiaries of the fund company may maintain the status quo because they have requirements to prohibit horizontal competition, and there are other special accounts of the parent company. Prohibitive regulations.

Third, non-standard investments require the establishment of dedicated posts responsible for post-investment management and information disclosure. The leverage ratio fully applies to the leverage ratio of the new asset management regulations, including the classification standards, so the previous leverage ratio of 1:1 for the mixed category is now relaxed to 2:1; the previous leverage ratio of 2:1 for private equity is now required to be 1:1.

Fourth, performance remuneration cannot exceed 60%. The new asset management regulations state that reasonable performance remuneration can be charged.

The fifth is the double 20% restriction requirement, which is slightly more relaxed than the double 10% for public offerings. But this provision is brand new. And this is not limited to securities, including non-standard securities, which are also subject to a 20% limit. Exceptions can be made for professional investors with a volume of more than 30 million. When the upper-level asset management plan is nested, it remains to be confirmed whether the 20% will be penetrated and identified.

Sixth, self-owned funds are allowed to participate in asset management plans, but the share does not exceed 20%. This is basically consistent with the current risk control indicators of securities companies. The total share of investment by the institution and its subsidiaries (including employees) with its own funds shall not exceed 50%; however, this is significantly different from the China Banking and Insurance Regulatory Commission, which prohibits banks’ own funds from participating in bank financial management.

Seventh is the open private equity asset management plan. During the open launch period, no less than 10% of the assets are required to be realizable assets within 7 working days, and the liquidity of the private equity asset management plan is further designed. limit. The China Banking and Insurance Regulatory Commission requires open-end financial products (including public offerings and private placements) to hold no less than 5% of the net asset value of the financial management product in cash or treasury bonds, central bank bills and policy financial bonds with a maturity date within one year.

Eighth, detailed provisions are made on related-party transactions. It is regulated in two situations. First, if you invest in securities issued or underwritten by related parties, you can do it, but you need to establish a firewall to prevent conflicts of interest; second, you are not allowed to provide financing for related parties (financing other than securities, such as Non-standard claims, unlisted equity, stock pledges, etc.); the China Banking and Insurance Regulatory Commission stipulates that commercial banks shall not use financial management funds to engage in improper transactions, transfer of interests, insider trading and market manipulation with related parties, including but not limited to investing in false projects of related parties , jointly acquire listed companies with related parties, inject capital into the bank, etc.; other forms of financing are not completely prohibited.

Ninth, income rights must not be created at will. This means that only income rights that are clear in laws and regulations are compliant, which has a great impact on industry practices.

Ten is mandatory hosting. The principle stipulates the requirements for mandatory independent custody. Taking into account the characteristics of a single asset management plan, the principal and the manager are allowed to agree not to have independent custody, but only if both parties agree and the risks are fully disclosed.

From ifeng.com