2. The Fund Department of China Securities Regulatory Commission makes detailed provisions on matters related to fund employees' investment in securities investment funds. Fund practitioners can buy and sell funds in the future. However, the investment varieties are limited to open-end funds, and closed-end funds are not allowed to invest.
3. The Notice requires that fund practitioners should abide by relevant laws and regulations and follow the principles of fairness, openness and impartiality when investing in funds. Do not use inside information to buy or sell funds, and do not use professional convenience to seek personal interests. Fund practitioners should establish the concept of long-term investment when investing in funds. The term of holding fund shares shall not be less than 6 months. The Notice encourages fund practitioners to make long-term investments through regular quotas. While allowing fund practitioners to invest in funds, the CSRC requires relevant units to establish corresponding supervision and filing mechanisms. The circular stipulates that fund management companies and bank custody departments shall formulate relevant management systems before allowing fund employees of their own units to invest in funds, and report them to the China Securities Regulatory Commission and its dispatched offices for the record. The management system should include clear provisions on employee behavior, investment methods, investment restrictions, reporting and filing management, and illegal handling methods. In addition, fund employees should fulfill certain information disclosure obligations when investing in funds. A fund management company shall disclose the total amount and proportion of fund shares held by its fund employees in the effective announcement of fund contracts, the announcement of listing transactions and the semi-annual report and annual report of relevant funds.