First, legalization. Private placement filing enables private placement institutions to obtain private placement licenses and legal business qualifications.

Second, expand business scope. Investment companies become formal and legal private placement institutions through filing, and are eligible to issue wealth management products.

Third, increase trust. After the private placement institution is filed with the association, the association can supervise the business activities of the private placement institution and increase the public's trust in the private placement institution through third-party certification.

Fourth, avoid legal risks. The effectiveness of the newly implemented legal norms is not retroactive. For the business activities of investment companies suspected of illegal fund-raising, they can be "whitewashed" by filing, while institutions that fail to pass the filing review are cancelled.