The demand for affiliated fund companies mainly comes from shell companies applying for fund licenses. The legal representative of the company with a shell is sealed up, and the sealing personnel do not need to punch in to work, and the products are withdrawn after being filed by the fund industry association.
Many private equity executives are not qualified, but only by finding a certificate to complete the filing. Most of the private equity executives who have not passed the fund qualification examination may come from registered small private placements or even shell private placements. They don't necessarily invest in the secondary market themselves, and they don't have the basic knowledge of investment.
Generally speaking, for most private equity institutions looking for affiliated companies, the overall strength is relatively limited, and there are often large operational risks and relatively high probability of violation. In addition, the associated person does not know the specific activities of the company. Once the company engages in illegal acts, it may "sit together" with related parties, which may lead to the punishment of the China Foundation and affect the legal representative qualification in the future. In the worst case, it will bear civil, administrative and criminal responsibilities together with legal persons.