CSRC published consultations on the "Management Measures for Private Equity Asset Management Business of Securities and Futures Operating Agencies (Draft for Comment)" and "Regulations on the Operation and Management of Private Equity Asset Management Plan of Securities and Futures Operating Agencies (Draft for Comment). The draft regulations prohibit securities firms and fund managers from providing “channeling” services to banks, as such services could help banks to evade investment controls. Comments are due by August 19, 2018.
These proposed rules are based on the current regulatory requirements for the system integration of private equity management business of securities and futures operating institution, and fully implements the relevant requirements of the “Guiding Opinions on Regulating Asset Management Business of Financial Institutions," which were issued on April 27, 2018. These regulations are intended to be released as a supporting guideline for the “Guiding Opinions.” A spokesperson of CSRC said that most of the new regulations on asset management business have been implemented since 2016. These regulations are intended to promote a smooth transition of the stock and asset management business of securities and futures operating institutions, to further improve the compliance management and risk control level of the private equity management business of securities and futures operating institutions, to effectively protect the legitimate rights and interests of investors, and to prevent systemic risks. CSRC will carefully study the feedback from all parties and release it as soon as possible after further improvement.
Related Links (in Chinese)
- News Release
- Measures for PE Asset Management Business of Securities and Futures Agencies (PDF)
- Rules on Operation and Management of Private Equity Management Plan (PDF)
Comment Due Date: August 19, 2018
Keywords: Asia Pacific, China, Securities, Asset Management, Channeling Services, CSRC
Previous ArticleSwitzerland and EU Amend Their Insurance Agreement
EBA issued a revised list of validation rules with respect to the implementing technical standards on supervisory reporting.
EBA published its response to the call for advice of EC on ways to strengthen the EU legal framework on anti-money laundering and countering the financing of terrorism (AML/CFT).
NGFS published a paper on the overview of environmental risk analysis by financial institutions and an occasional paper on the case studies on environmental risk analysis methodologies.
MAS published the guidelines on individual accountability and conduct at financial institutions.
APRA published final versions of the prudential standard APS 220 on credit quality and the reporting standard ARS 923.2 on repayment deferrals.
SRB published two articles, with one article discussing the framework in place to safeguard financial stability amid crisis and the other article outlining the path to a harmonized and predictable liquidation regime.
FSB hosted a virtual workshop as part of the consultation process for its evaluation of the too-big-to-fail reforms.
ECB updated the list of supervised entities in EU, with the number of significant supervised entities being 115.
OSFI published the key findings of a study on third-party risk management.
FSB is extending the implementation timeline, by one year, for the minimum haircut standards for non-centrally cleared securities financing transactions or SFTs.