the People’s Bank of China, the China Banking Regulatory Commission and the China Securities Regulatory Commission Announcement of the People’s Bank of China, the China Banking Regulatory Commission and the China Securities Regulatory Commission No.4 For the purpose of carrying out Some Opinions of the State Council on Promoting the Reform, Opening-up and Stable Development of the The People’s Bank of China The China Banking Regulatory Commission The China Securities Regulatory Commission February 20, 2005 Measures for the Administration of Pilot Establishment of Fund Management Companies by Commercial Banks Chapter I General Provisions Article 1 For the purpose of carrying out Some Opinions of the State Council on Promoting the Reform, Opening-up and Stable Development of the Article 2 Commercial banks hereof refer to those state-owned commercial banks and joint stock commercial banks that are established with the Article 3 Fund management companies hereof refer to those enterprises as a legal person that are established with direct investment of commercial Article 4 A fund management company established by a commercial bank shall raise and manage funds pursuant to the business scope as prescribed Article 5 The People’s Bank of China shall, together with the CBRC and the CSRC , be responsible for the comprehensive coordination of the establishment Chapter II Procedures for Examination and Approval of Applications Article 6 A commercial bank that applies for investing in a fund management company shall submit materials in accordance with the relevant provisions Article 7 Upon the regulatory opinions issued by the CBRC concerning the approval of the investment by a commercial bank in a fund management The commercial bank shall simultaneously send a copy of the said materials to the People’s Bank of China during the pilot period. Article 8 Each commercial bank is encouraged to establish fund management companies in the form of equity diversification. Article 9 The requirements and the shareholders’ qualifications for a commercial bank to establish a fund management company shall be in accordance Chapter III Risk Control Article 10 A fund management company established by a commercial bank shall establish a sound corporate governance. The commercial bank shall, Article 11 A commercial bank shall assume limited liabilities no greater than its initial financial contribution to the fund management company Article 12 The commercial bank and the fund management company established by it may not provide clients’ information to each other in violation Article 13 The staff of the fund management company established by a commercial bank must terminate their job contracts with the bank, and may Article 14 The fund assets managed by the fund management company established by a commercial bank may not be used to purchase securities issued Article 15 Where a commercial bank makes financial contribution to the funds managed by the fund management company, it shall conduct it pursuant Article 16 No commercial bank may act as the trustee of the funds managed by the fund management company that is established by the bank. Article 17 A commercial bank may sell, on a commission basis, fund products issued by the fund management company established by it, however, Article 18 A commercial bank and a fund management company established by it may not conduct transactions on terms more favorable than those Article 19 The detailed rules for the implementation of connected transactions between a commercial bank and a fund management company established A fund management company established by a commercial bank and any commercial bank that establishes a fund management company shall Chapter IV Supervision and Administration Article 20 Types of fund raised by a fund management company established by a commercial bank shall subject to examination and approval of the Article 21 The CBRC shall define standards for the calculation of relevant risk control indicators for commercial banks that establish fund management Article 22 The CSRC shall supervise fund management companies established by commercial banks, and the funds raised and managed by the fund management Article 23 The People’s Bank of China shall put on file and supervise the access of fund management companies established commercial banks to Article 24 A fund management company established by a commercial bank and the commercial bank that establishes a fund management company shall Article 25 The People’s Bank of China, the CBRC and the CSRC shall, in a timely manner, exchange the relevant information with each other and Chapter V Supplementary Provisions Article 26 These Measures shall also apply to the acquisition of fund management companies by commercial banks. Article 27 The People’s Bank of China, the CBRC and the CSRC shall jointly select pilot commercial banks and jointly make arrangements for the Article 28 The power to interpret these Measures shall be vested in the People’s Bank of China, the CBRC and the CSRC. Article 29 These Measures shall go into effect as of February 20, 2005. |
the People’s Bank of China, the China Banking Regulatory Commission and the China Securities Regulatory Commission
2005-02-20