Suspension of subscription means that according to the relevant provisions of the Administrative Measures, fund management companies can temporarily stop handling investor subscription applications even on the fund open day.

1, definition

Under normal circumstances, when an investor applies for an open-end fund share within the specified time of the fund open day, the fund manager, that is, the fund management company, shall accept the investor's application and handle the relevant subscription procedures for the investor. However, according to the relevant provisions of the Measures for the Administration of the Operation of Securities Investment Funds (hereinafter referred to as the Measures), on the premise of meeting the pre-agreed conditions, even during the fund open day, the fund management company may no longer accept the application for subscription by investors. This entry was created to discuss related issues.

2. Situation

In order to protect the rights and interests of investors and limit the excessive expansion of the fund scale, according to the provisions of Article 21 of Chapter III of the Administrative Measures, open-end funds can stipulate that the fund reaches a certain scale, and the fund manager will no longer accept subscription and subscription applications, but it should be stated in the prospectus. It also stipulates that after the fund contract comes into effect, the fund manager can adjust the fund scale according to the actual situation in accordance with the provisions of the fund contract. Therefore, when the fund manager finds that the fund has reached a certain scale, he can take restrictive measures to suspend the subscription to control the further expansion of the fund scale. At this time, investors can't apply for subscription for the time being. Only when the fund manager issues an announcement to cancel the suspension of subscription can he apply for subscription again.

Step 3 perform

Suspension of subscription shall be implemented according to the following steps:

(1) In the fund contract, the scale of the fund shall be stipulated;

(2) During the raising period of the open-end fund, it shall be stated in the prospectus of the fund and disclosed through the designated media;

(3) When the fund management company needs to suspend the subscription according to the specific conditions of the fund size, it shall issue an announcement to announce that the fund is in a state of suspension of subscription;

(4) When the fund management company needs to open the fund subscription according to the specific conditions of the fund size, it shall also issue an announcement to announce that the fund is in the open subscription state.