The liquidation report made by the liquidation group shall be audited by an accounting firm, and after the law firm issues a legal opinion, it shall be reported to the the State Council Securities Regulatory Authority for filing and announcement. The remaining fund property after liquidation shall be distributed according to the shares held by the fund share holders.
Liquidation conditions:
1. Closed-end funds are not allowed to renew when they expire;
2. The fund holders' meeting decides to terminate;
3. The duties of the original fund manager and fund custodian are terminated, and no new fund manager or fund custodian is responsible;
4. The circumstances stipulated in the fund contract or the fund articles of association.
What is fund settlement?
The fund sales settlement fund refers to the fund subscription (subscription), redemption, cash dividend and other funds collected by the fund sales institution, the fund sales payment settlement institution or the fund share registration institution and transferred between the fund investor settlement account and the fund property custody account.
Settlement method:
Securities companies can use custody settlement method and securities company settlement method to handle the settlement business of on-site transactions for custody funds.
In terms of risk management, securities companies should bear the final settlement responsibility for all self-operated, brokerage, custody and other businesses included in the scope of multilateral net settlement in accordance with the principle of legal person settlement. If a securities company breaches the contract in the delivery of custody business, China Clearing has the right to deduct and dispose of its self-operated settlement funds and self-operated securities to make up for the breach. When a securities company conducts fund custody business, it shall refer to the requirements of relevant industry associations for custody banks and sign relevant securities fund settlement agreements with customers. As a fund custodian, a securities company can refer to the Business Process of China Clearing Assisting Custody Banks to Freeze, Unfreeze, Transfer and Return the Securities of Default Clients issued and implemented by China Clearing.