Without the approval of the China Securities Regulatory Commission, fund management companies and fund custody banks arbitrarily appoint or change the positions of senior management personnel, and shall be ordered to make corrections; The directly responsible person in charge and other directly responsible personnel shall be given a warning and fined.

In violation of the provisions of these measures, the fund management company decides to perform the duties of senior management personnel on its behalf, and shall be ordered to make corrections; The directly responsible person in charge and other directly responsible personnel shall be given a warning and fined. If a fund management company or fund custodian bank is under any of the following circumstances, it shall be ordered to correct, given a warning and fined; Give a warning to the directly responsible person in charge and other directly responsible personnel and impose a fine:

(1) Failing to perform the reporting obligations in accordance with the provisions of these Measures, or the reporting materials contain false contents;

(two) in violation of procedures to recall senior management personnel or the appointment and removal of directors and fund managers of fund management companies;

(3) Failing to deal with the proposal of the China Securities Regulatory Commission to suspend or dismiss the senior management personnel in accordance with regulations.

(four) in violation of the provisions of the second paragraph of article forty-second of these measures, hiring personnel to engage in investment business;

(five) failing to conduct outgoing audit and outgoing review in accordance with the provisions of these measures. Senior management personnel who violate laws, administrative regulations and the provisions of the China Securities Regulatory Commission, if the circumstances are serious, shall be suspended or revoked according to law.

Fund managers and fund custodians violate the Securities Investment Fund Law and other relevant laws, administrative regulations and the provisions of the China Securities Regulatory Commission, and if the circumstances are serious, the qualifications of the directly responsible senior managers shall be suspended or revoked according to law. These Measures shall come into force as of June 6, 2004. The Interim Provisions on the Administration of the Qualification of Fund Practitioners (No.53 issued by CSRC [1999]) shall be abolished at the same time.