I. Main points of compliance behavior of private equity funds Introduce the main system of the Measures for the Administration of Private Equity Fund Raising (Trial) (Draft for Comment) (1) Establish a private equity fund raising/selling system, but strictly limit that only two types of sales entities can engage in fund raising/selling: 1, registered private equity fund managers; 2. Consignment agency is strictly defined as "an institution registered with China Securities Regulatory Commission, which has obtained the qualification of fund sales business and become a member of China Fund Industry Association". It is forbidden to entrust non-consignment agencies or personnel to sell. Two. Establish and strengthen employee qualification management. Personnel engaged in private fund raising business shall have the qualifications for fund practice and shall participate in follow-up practice training. According to the Measures for the Registration of Private Investment Fund Managers and the Filing of Funds (Trial), those who meet one of the following conditions can be considered as qualified for private equity: 1, and have passed the private equity qualification examination organized by the fund industry association; 2. Engaged in investment management related business in the last three years; 3 other circumstances identified by the fund industry association. Third, strengthen the responsibility of the manager, and the entrusted offering does not exempt the manager from the responsibility. The responsibilities of the administrator are not limited to: 1, due diligence, honesty and credit, prudence and diligence. 2. Fulfill the obligation of reasonable care and undertake the relevant responsibilities of reviewing the appropriateness of investors. 3. Where a private fund manager entrusts a fund sales organization to raise private funds, it shall fulfill its reporting and information disclosure obligations according to law; Private fund managers shall not be exempted from the responsibilities they should bear according to law because they are entrusted to raise funds. Four. Fund Sales Agreement Where a private fund manager entrusts a fund sales institution to raise private funds, it shall sign a fund sales agreement as an annex to the fund contract. The fund sales agreement shall clearly define the rights, obligations and responsibilities of the manager and the fund sales organization, and the fund sales organization shall be responsible for explaining the relevant contents to investors. V. Set the reasonable care obligations of fundraising institutions such as managers to qualified investors. A fundraising institution shall fulfill its obligations of reasonable care to investors, including but not limited to: 1. Ensure that investors make a written commitment to buy private equity funds for themselves; 2. The conditions of transfer are stipulated in the fund contract. Intransitive verbs strengthen the supervision requirements of qualified investors, and explicitly prohibit breaking the standards of qualified investors in disguise through splitting. No institution or individual may raise products with private equity fund shares or their income rights as investment targets, evade the standard of qualified investors, and may not split and transfer private equity fund shares or their income rights, thus breaking the standard of qualified investors in disguise. No institution or individual may purchase private equity funds for the purpose of illegal split and transfer. 7. Qualified investors of private equity funds 1. Qualified Investor Criteria: Units and individuals with corresponding risk identification ability and risk-taking ability, with the investment amount of a single private equity fund not less than 1 10,000 yuan and meeting the following relevant standards: (1) Units with net assets not less than 1 10,000 yuan; (2) Individuals whose financial assets are not less than 3 million yuan or whose average annual income in the last three years is not less than 500,000 yuan. The financial assets mentioned in the preceding paragraph include bank deposits, stocks, bonds, fund shares, asset management plans, bank wealth management products, trust plans, insurance products, futures rights and interests, etc. 2. QFII confirmation procedures: (1) Reveal the risks of private equity funds; (2) Investors provide financial assets certification documents to the fundraising institution; (3) Does the fundraising institution review whether it meets the requirements of qualified investors? The above points are mainly aimed at the compliance behavior of private equity funds. I hope it will be helpful for you to encounter such problems in the future. To sum up, we should pay attention to the internal supervision of private equity funds, plan the relevant risk investment rate, and solve the compliance of private equity funds. When encountering such problems, we can also understand the legal provisions of private equity fund dispute settlement in China.