Legal basis: People's Republic of China (PRC) Securities Investment Fund Law.
Article 97 Institutions engaged in fund services such as sales of publicly offered funds, payment of sales funds, share registration, valuation, investment consultation, evaluation and information technology system services shall register or put on record in accordance with the provisions of the State Council Securities Regulatory Authority.
Article 98 A fund sales institution shall fully disclose the investment risks to investors, and sell fund products with different risk levels according to the risk-taking ability of investors.
Article 111 A fund industry association shall perform the following duties:
(1) Educating and organizing members to abide by securities investment laws and administrative regulations, and safeguarding the legitimate rights and interests of investors;
(two) to safeguard the legitimate rights and interests of members in accordance with the law and reflect the suggestions and demands of members;
(three) to formulate and implement industry self-discipline rules, supervise and inspect the practice behavior of members and their employees, and give disciplinary sanctions in accordance with the provisions for violations of self-discipline rules and articles of association;
(four) to formulate industry practice standards and business norms, and organize the examination, qualification management and business training of fund employees;
(five) to provide member services, organize industry exchanges, promote industry innovation, and carry out industry publicity and investor education activities;
(six) to mediate fund business disputes between members and between members and customers;
(seven) to handle the registration of non-public offering funds according to law;
(eight) other duties stipulated in the articles of association.
Article 119 Anyone who, in violation of the provisions of this Law, establishes a fund management company without approval or engages in the management of publicly offered funds without authorization shall be banned or ordered to make corrections by the securities regulatory body, and his illegal income shall be confiscated, and he shall also be fined from one time to five times his illegal income. If there is no illegal income or the illegal income is less than one million yuan, a fine of not less than one hundred thousand yuan but not more than one million yuan shall be imposed. Give a warning to the directly responsible person in charge and other directly responsible personnel, and impose a fine of more than 30,000 yuan and less than 300,000 yuan.
If a fund management company, in violation of the provisions of this Law, arbitrarily changes its shareholders, actual controllers or other major matters holding more than 5% of the shares, it shall be ordered to make corrections, confiscate its illegal income and impose a fine of more than/kloc-0 and less than 5 times its illegal income; If there is no illegal income or the illegal income is less than 500,000 yuan, a fine of not less than 50,000 yuan but not more than 500,000 yuan shall be imposed. Give a warning to the directly responsible person in charge and impose a fine of more than 30,000 yuan10,000 yuan.