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Do private equity fund subscriptions have to go through an investment manager?
According to the "Measures for Raising Funds", in the process of raising private equity funds, raising institutions should perform six procedures, including determining specific targets, matching investors appropriately, revealing fund risks, identifying qualified investors, investing in a cooling-off period, and confirming return visits. Then, what investors need to do in the process of understanding and subscribing for products includes: 1, cooperating with fundraising institutions, and evaluating their risk identification ability and risk tolerance through questionnaires. And promised in writing that it meets the standards of qualified investors and fulfilled the procedures for determining specific targets. 2. Signed the explanatory document of the fundraising agency on the matching of product risk level and investor risk tolerance, and fulfilled the investor suitability matching procedure. A fundraising institution shall conduct risk rating on private equity funds by itself or by entrusting a third-party institution, and establish scientific and effective risk rating standards and methods for private equity funds. A fundraising institution shall, according to the risk types and rating results of private equity funds, recommend private equity funds to investors that match their risk identification ability and risk-taking ability. 3. Provide necessary asset certification documents or income certificates, and the fundraising institution will review whether it meets the standards of qualified investors and perform the procedures for confirming qualified investors. If the investor is an individual, its financial assets are not less than 3 million yuan or its average annual income in the last three years is not less than 500,000 yuan; If the investor is an institution, the net assets shall be no less than 6,543,800 yuan. 4. Accept the return visit confirmation. Qualified investors will enter a 24-hour cooling-off period after confirming, signing private equity fund contracts and paying subscription funds. After the cooling-off period, the fund-raising institution will pay a return visit to the investment by recording telephone calls, emails, letters and other appropriate means. Investors have the right to terminate the fund contract before the return visit is confirmed to be successful. (Adapted from Guangdong Securities Regulatory Bureau, originally from the investor education base of GF Securities website).