The China Securities Regulatory Commission recently issued FOF guidelines: the main arrangements are as follows:

Funds of funds are required to invest 80% in other publicly raised fund shares and must follow the principles of portfolio investment;

No double charging of management fees and custody fees;

Make it clear that the fund manager will disclose the net value of the fund the next day;

Establish a dedicated Disclose risks in chapters;

Set up independent departments with specialized personnel, and fund managers in funds cannot serve as fund managers of other funds;

Strengthen the main responsibility of managers.