The China Securities Regulatory Commission issued an interim regulation on 15th, which regulates the private equity management business of securities and futures institutions in terms of leverage ratio, structured products and fund pool.
according to the explanation of the CSRC, during the abnormal fluctuation of the stock market in 215, the private equity management business of securities and futures institutions exposed many problems such as business anomie. "To this end, it is necessary to improve the rules and further improve the standardized operation level of private equity asset management business of securities and futures operating institutions." Deng Ge, spokesman of the China Securities Regulatory Commission, said that in addition, the number of private equity investment fund managers registered with the fund industry association has increased rapidly, and the management scale has increased rapidly. In order to prevent business risks and avoid regulatory arbitrage, it is also necessary to include private equity investment fund managers in the adjustment scope.
At present, some structured asset management products over-protect the interests of priority investors, divorced from the actual investment results of asset management products, and guarantee the priority investors to obtain fixed income through complex contractual agreements, which have been alienated into "loan-like" products to some extent, which does not conform to the origin of asset management business.
the interim provisions require that the asset management plan should abide by the basic principles of * * * sharing of benefits, * * * bearing of risks and matching of risks and benefits, strictly control the leverage risk, and may not directly or indirectly provide capital preservation and income protection arrangements for the priority share subscribers of the structured asset management plan.
according to the scope and proportion of investment, the interim provisions classify structured asset management products into stock, fixed income, mixed and other categories, and set different upper limits of leverage ratio according to the fluctuation degree of market risk of different categories of products. "Lowering the upper limit of leverage ratio of high-risk stocks and mixed products from 1 times to 1 time is based on the actual situation of the current stock market and clearly reflects the regulatory orientation." Deng Wei said.
in addition, in order to further control the investment risk and reduce the level of investment leverage, the interim provisions have moderately restricted the investment leverage of asset management products, and made it clear that the total assets of structured asset management plans should not exceed 14% of the net assets, and the total assets of unstructured aggregate ("one-to-many") asset management plans should not exceed 2% of the net assets.
the interim provisions clearly stipulate that securities and futures operating institutions shall not engage in private equity management business with the nature of "fund pool", that is, invest in asset management products with the nature of "fund pool" managed by other institutions.
the interim provisions will be implemented as of July 18th, 216, and the transitional arrangements of "cutting off the old from the new" will be implemented for structured products, capital preservation products and entrusted investment advice. If the relevant surviving asset management products do not meet the requirements, the leverage ratio shall not be increased before the expiration of the contract, and the net subscription scale shall not be increased. After the expiration of the contract, they shall be liquidated and not renewed.