Measures for the administration of sales of securities investment funds

Chapter I General Provisions Article 1 In order to standardize the sales activities of securities investment funds and promote the healthy development of the securities investment fund market, these Measures are formulated in accordance with the Securities Investment Fund Law and other relevant laws and administrative regulations. Article 2 The sale of securities investment funds (hereinafter referred to as funds) as mentioned in these Measures includes fund managers or other institutions entrusted by fund managers (hereinafter referred to as consignment agencies) to publicize and promote funds, sell fund shares, and handle fund share subscription and redemption. Article 3 Fund managers and consignment agencies engaged in fund sales activities shall abide by laws, administrative regulations and the provisions of China Securities Regulatory Commission (hereinafter referred to as China Securities Regulatory Commission), and shall not harm the national interests, social interests and the legitimate rights and interests of investors. Article 4 Fund managers and consignment agencies engaged in fund sales activities shall abide by the provisions of fund contracts and fund consignment agreements, follow the principles of openness, fairness and impartiality, be honest and trustworthy, be diligent and conscientious, and abide by professional ethics and codes of conduct. Article 5 The China Securities Regulatory Commission and its dispatched offices shall supervise and manage fund sales activities in accordance with laws, administrative regulations and these Measures. Article 6 Fund trade associations shall conduct self-discipline management of fund sales activities in accordance with laws, administrative regulations, provisions of China Securities Regulatory Commission and self-discipline rules. Chapter II Fund Consignment Article 7 Fund sales shall be handled by fund managers; The fund manager may entrust other institutions that have obtained the qualification of fund consignment business to handle it on his behalf. An institution that has not obtained the qualification of fund agency business shall not accept the entrustment of the fund manager to handle the fund sales business on its behalf. Article 8 Commercial banks, securities companies, securities investment consulting institutions, professional fund sales institutions and other institutions stipulated by the China Securities Regulatory Commission may apply to the China Securities Regulatory Commission for the qualification of fund consignment business. Article 9 A commercial bank applying for the qualification of fund agency business shall meet the following conditions:

(1) Its capital adequacy ratio complies with the relevant provisions of the the State Council Banking Regulatory Authority;

(two) there is a department responsible for the fund consignment business.

(3) It is in good financial condition, has a stable business standard, and has not been subjected to administrative punishment or criminal punishment for illegal acts in the last three years;

(4) It has a sound corporate governance structure, internal control and risk management system, and has been effectively implemented.

(5) Having a business place, security facilities and other facilities suitable for the fund consignment business;

(6) It has safe and efficient technical facilities for fund sales, subscription and redemption, and the technical system of fund consignment business has been tested online and connected with the corresponding technical systems of fund managers, fund custodians and fund registration institutions, and the test results meet the standards set by the state;

(7) Formulating a sound management system for fund consignment business, such as business process, professional ethics of sales personnel and emergency measures;

(8) The department in charge of fund agency business of the company and its main branches has at least one-half of its employees, and the department manager has obtained the qualification of fund agency business, is familiar with fund agency business, and has been engaged in fund business for more than two years or securities finance business for more than five years;

(9) Other conditions stipulated by the China Securities Regulatory Commission. Article 10 To apply for the qualification of fund agency business, a securities company shall meet the following conditions in addition to the conditions specified in Items (2) to (9) of Article 9 of these Measures:

(1) The financial risk monitoring indicators such as net capital comply with the relevant provisions of the China Securities Regulatory Commission;

(2) There has been no misappropriation of clients' assets or other acts that harm clients' interests in the last two years;

(3) It is not being investigated by the regulatory authorities due to illegal acts, or it is being rectified;

(4) There are no major changes or other major events such as litigation and arbitration that have affected or may affect the normal operation of the company. Article 11 To apply for the qualification of fund agency business, a securities investment consulting institution shall meet the following conditions in addition to those specified in Items (2) to (9) of Article 9 and Items (3) and (4) of Article 10 of these Measures:

(a) the registered capital is not less than 20 million yuan, and it must be paid-in monetary capital;

(2) The senior management personnel have obtained the qualification of fund practice, are familiar with the fund consignment business, and have been engaged in fund business for more than two years or securities finance business for more than five years;

(3) Having been engaged in securities investment consulting business for more than 3 complete fiscal years.

(4) Failing to engage in securities trading as an agent for investors in the last three years. Article 12 To apply for the qualification of fund agency business, a professional fund sales institution shall meet the following conditions in addition to those stipulated in Items (3) to (7) of Article 9, Items (3) to (4) of Article 10 and Items (1) to (2) of Article 11 of these Measures:

(1) Having an organization name, organization and business scope that meet the requirements;

(2) The main investor is a legal person established according to law, has been operating continuously for more than three complete fiscal years, has a registered capital of not less than 30 million yuan, is in good financial condition, and has a sound business standard, and has not been subjected to administrative punishment or criminal punishment for illegal acts in the last three years;

(3) Not less than 30 employees and not less than half of them have obtained the qualification for fund practice;

(4) Other conditions stipulated by the China Securities Regulatory Commission.