Fund managers and fund custodians shall perform their fiduciary duties in accordance with this Law and the provisions of fund contracts.
Fund share holders of funds established through public offering (hereinafter referred to as Public Offering of Fund) shall enjoy benefits and bear risks according to their fund shares, and the income distribution and risk bearing of funds established through non-public offering (hereinafter referred to as non-public offering funds) shall be stipulated in the fund contract. Article 4 The activities of securities investment funds shall follow the principles of voluntariness, fairness, honesty and credibility, and shall not harm the national and social public interests. Article 5 The debts of the fund property shall be borne by the fund property itself, and the fund share holders shall be liable for the debts of the fund property to the extent of their capital contribution. However, if the fund contract has other provisions in accordance with this Law, such provisions shall prevail.
Fund property is independent of the inherent property of fund managers and fund custodians. Fund managers and fund custodians may not classify fund property as their inherent property.
Property and income obtained by fund managers and fund custodians due to the management and use of fund property or other circumstances shall be classified as fund property.
If a fund manager or fund custodian is liquidated due to dissolution, cancellation or bankruptcy according to law, the fund property does not belong to its liquidation property. Article 6 The creditor's rights of the fund property shall not be offset against the debts of the inherent property of the fund manager and fund custodian; Creditor's rights and debts of different fund properties shall not offset each other. Article 7 The debts that are not borne by the fund property itself shall not be enforced against the fund property. Article 8 Taxes related to fund property investment shall be borne by fund share holders, and withheld and remitted by fund managers or other withholding agents in accordance with the relevant state regulations on tax collection. Article 9 Fund managers and fund custodians shall manage and use fund property, and fund service institutions shall perform their duties and fulfill their obligations of honesty, credibility, prudence and diligence when engaging in fund service activities.
Fund managers should abide by prudent operation rules, formulate scientific and reasonable investment strategies and risk management systems, and effectively prevent and control risks when using fund property for securities investment.
Fund practitioners shall have the qualifications for fund practice, abide by laws and administrative regulations, and abide by professional ethics and codes of conduct. Article 10 Fund managers, fund custodians and fund service institutions shall establish securities investment fund industry associations (hereinafter referred to as fund industry associations) in accordance with this Law to conduct industry self-discipline, coordinate industry relations, provide industry services and promote industry development. Article 11 the State Council Securities Regulatory Authority shall supervise and manage the activities of securities investment funds according to law; Its dispatched offices shall perform their duties in accordance with the authorization. Chapter II Fund Managers Article 12 A fund manager shall be a legally established company or partnership.
The fund manager of a publicly offered fund shall be a fund management company or other institutions approved by the the State Council Securities Regulatory Authority in accordance with relevant regulations. Article 13 The establishment of a fund management company to manage publicly offered funds shall meet the following conditions and be approved by the the State Council Securities Regulatory Authority:
(1) Having articles of association that conform to this Law and the Company Law of People's Republic of China (PRC);
(2) The registered capital shall not be less than 1 billion yuan, and it must be paid-in monetary capital;
(3) The major shareholder has a good performance in financial business or management of financial institutions, has a good financial status and social reputation, and its asset size meets the standards set by the State Council, and has no illegal record in the last three years;
(four) the number of personnel who have obtained the qualification for fund practice has reached a quorum;
(5) Directors, supervisors and senior managers have corresponding qualifications;
(6) Having business premises, safety precautions and other facilities related to the fund management business that meet the requirements;
(seven) has a good internal governance structure, perfect internal audit monitoring system and risk control system;
(eight) other conditions stipulated by laws and administrative regulations and the the State Council securities regulatory agency approved by the State Council. Article 14 The the State Council securities regulatory authority shall, within six months from the date of accepting the application for the establishment of a fund management company, make a review according to the conditions stipulated in Article 13 of this Law and the principle of prudent supervision, make a decision on approval or disapproval, and notify the applicant; If it is not approved, it shall explain the reasons.
If a fund management company changes its shareholders who hold more than 5% of the shares, changes its actual controller or changes other major matters, it shall report to the the State Council Securities Regulatory Authority for approval. The State Council securities regulatory authority shall make a decision of approval or disapproval within 60 days from the date of accepting the application, and notify the applicant; If it is not approved, it shall explain the reasons.