Four ministries and commissions issued new regulations for asset management of financial institutions
Noun definition

  Asset Management Definition:

Asset management business refers to the behavior that the asset manager conducts business operations on client assets, provides securities, funds and other financial products for clients, and collects fees according to the methods, conditions, requirements, and restrictions as stipulated in the asset management contract.

Asset management can be defined as the actual process in which the assets collected by institutional investors are invested in the capital market. Although these two aspects are often conceptually intertwined, in fact, from a legal point of view, asset managers may or may not be part of institutional investors. In fact, asset management can be the organization's own internal affairs, or it can be external.

Therefore, asset management refers to the behavior of the trustee to hand over his assets to the trustee, and the trustee provides the trustee with financial services. It is a financial institution that acts as a proxy for client assets to invest in the financial markets and to obtain investment returns for clients.

Another way of asset management is to use the assets as the asset manager to manage the assets of the custodians, mainly investing in industries, including but not limited to production companies. This management risk is relatively small, the income is lower than the capital market, and the investment threshold is low.

  Overview of asset management development:

In recent years, with the continuous improvement of the income level of the Chinese people, the question of how to allocate assets and manage wealth has come. In the next five years, the competitive situation of China’s asset management agencies will change, and banks will continue to be the backbone. Thanks to the acceleration of direct financing, public funds and private equity funds will grow faster, and asset management organizations that rely on channel operations will face a transition.

As of the end of 2015, the total assets under management by various asset management institutions in China (including bank wealth management, trusts, insurance, securities companies, public funds, and fund subsidiaries) amounted to approximately 93 trillion yuan, and the average annual compound growth over the past three years. The rate is 51%. It is expected to reach RMB 174 trillion in 2020, and the CAGR of 2015-2020 will be 17%.

The proportion of future pension funds in the asset management market has increased significantly. By 2020, the pension will bring 1.5-2 trillion yuan of capital to the capital market. The scale of the national social security fund will reach 3.5-4 trillion yuan, and corporate annuities and professional annuities will also contribute a larger increase. In addition, insurance funds and enterprises are still important institutional investors in the future, and the importance of bank outsourcing investment will also increase.

From the perspective of asset management category, the passive management type and unconsolidated alternative investments have generally developed rapidly, such as index funds, private equity funds, and private equity funds. In active management, the development of stock products is still relatively fast, and cross-border products also have great potential.

The Central Bank, the China Banking Insurance Regulatory Commission, the China Securities Regulatory Commission and the Foreign Exchange Bureau jointly issued the "Guidelines on Regulating the Asset Management Business of Financial Institutions." ...[full text]
The relevant person in charge of the central bank pointed out that in terms of rationally setting up the transition period, the “Opinions” will extend the transition period to the end of 2020 compared to the draft for consultation. ...[full text]
Small survey
New rules core points
Asset Management New Regulations: Encourage the full use of private equity products to support marketization and legalization of debt-to-equity swaps

Compared with the solicitation draft issued on November 17, 2017, “Encourage the full use of private equity products to support marketization and legalized debt-to-equity swaps” to add new content to the new asset management regulations. ...[Details]

New Qualified Investors for New Assets and Regulations: Family Finance Net Assets Not Less Than 3 Million Yuan

According to the new regulations on asset management, qualified investors are natural and legal persons or other organizations that have the ability to identify risk and bear risk, and that invest in a single asset management product that is not lower than a certain amount and meets the following conditions. ...[Details]

Asset Management New Regulations: The same financial institution may issue more than 30 billion yuan worth of assets invested in the same assets

If the same financial institution issues more than one asset management product and invests in the same asset, in order to prevent the risk of the same asset from affecting more than one asset management product, the total amount of funds invested by multiple asset management products into the asset shall not exceed 30 billion yuan. ...[Details]

Asset Management Regulates Qualification of Qualified Investors: Annual Income in the Last Three Years is not less than 400,000

According to the Opinions, investors in asset management products fall into two categories: unspecified public and qualified investors. Qualified investors are natural and legal persons or other organizations that have the ability to identify risks and bear risks and invest in a single asset management product that is not lower than a certain amount and meets the following conditions. ...[Details]

Asset Management New Rules: Eliminate Multi-Level Nesting Suppression of Channel Services

Strict non-standard investment requirements for credit assets, prohibition of capital pools, and prevention of shadow banking risks and liquidity risks. Classifying unified liabilities and grading leverage requirements eliminates multiple levels of nesting and inhibits channel traffic. ...[Details]

Asset Management New Rules: Forbid financial institutions to use pledged management product shares for pledge financing

The Opinion prohibits the share rating of public offerings and open private placement products. In a closed private equity product that can be classified, the classification ratio of fixed income products (priority shares/inferior shares) must not exceed 3:1, and equity products must not exceed 1:1. ...[Details]

Asset Management New Regulations: The total size of assets invested by multiple asset management products must not exceed 30 billion yuan

In order to prevent the risk of the same assets from affecting more than one product, the Opinions require that the total amount of funds issued by the same financial institution for the issuance of multiple asset management products to the same asset shall not exceed 30 billion yuan. If it exceeds this scale, approval by the financial supervision and administration department is required. ...[Details]

Asset management new regulations: Non-financial institutions may not issue or sell asset management products

The four ministries and commissions including the Central Bank jointly issued the Guiding Opinions on Regulating the Asset Management Business of Financial Institutions. The asset management business, as a financial business, belongs to the franchise industry and must be incorporated into financial supervision. Non-financial institutions may not issue or sell asset management products, except as otherwise provided for by the State. ...[Details]

Analytical interpretation
One by one comparison draft! New changes in asset management regulations directly related to your money bag

Compared with the consultation draft, there are major changes in the new regulations on asset management. Important changes include: The extension of the transition period to the end of 2020, the definition of standardized products is more clear, the increase in some asset-controlled products can still be used amortized cost method valuation, graded products and leverage ratio is more relaxed than before. ...[Details]

Central Bank and other heavy release! Asset Management New Regulations Extend the Transition Period by One and a Half Years

Bank financing is an absolute “big player” in the asset management industry. The new regulations on asset management have the largest impact on them. The “Guidance Opinion” is only a programmatic regulatory document. The former Banking Regulatory Commission has been hurrying to formulate detailed rules for supporting the supervision of bank financing. With the completion of the Guiding Opinions, it is expected that the supporting supervision rules for bank wealth management will also be released soon. ...[Details]

Capital management new regulations landing! A remodeling of a billion-dollar asset management transition period extended to 2020

Relevant person in charge of the central bank pointed out that after a reasonable period of transition, through in-depth measurement and assessment, the Opinions extended the transition period to the end of 2020, giving financial institutions sufficient time for adjustment and transition. ...[Details]

The new capital management regulations landing! The transition period is extended by one and a half years

A new era opens! Please remember that today, on April 27, 2018, the trillion-dollar asset management industry finally ushered in the official implementation of the regulatory requirements for capital management. ...[Details]

Heavy! Asset management new regulations struck 10 major changes must read! 5 million financial migrant workers sleepless (with in-depth analysis)

On April 27th, the new regulations on asset management that the market attracted were formally put into place. Fund King made the top ten major changes by comparing the official draft with the consultation draft issued last November last year. ...[Details]

Xinhua News Agency Appraises the New Regulations: Don't Take a Financial Institution as a Cash Machine

China is already a big financial country, and the financial industry has a major influence on the social economy. Strengthen financial supervision, severely discipline the market, effectively isolate risks in the industrial and financial industries, and stimulate market vitality while regulating the market order. ...[Details]

Bank of China: Asset Management Regulations Extend Transition Period to End of 2020 Ensure Market Stability

The "Opinions" will extend the transition period to the end of 2020, giving financial institutions sufficient time for adjustments and transitions. Non-standard assets such as those that have not yet expired after the end of the transition period have also been properly arranged to guide financial institutions back to the balance sheet to ensure market stability. ...[Details]

The transition period for the new management of assets management will be slightly higher than expected by the end of 2020 during the transition period of “new and old delimitation”

On April 27, the two associations of the People's Bank of China and the Foreign Exchange Bureau jointly issued the Guiding Opinions on Regulating the Asset Management Business of Financial Institutions, clarifying the transition period of the new regulations to the end of 2020, and delaying the submission of draft comments by June 30, 2019. In the first half of the year, the end of the transition period is two and a half years from the current document, slightly exceeding market expectations. ...[Details]

Shen Wanhongyuan Macro: Asset Management Regulations Pay More Attention to Balanced Impacts

Strict supervision is expected to land smoothly. The new draft of the asset management and management system upholds the overall keynote of risk prevention. The core goal is to eliminate regulatory arbitrage space to the greatest extent. Measures in key areas such as capital pool business, rigid payment, multi-level nesting, channel business, and non-standard business are still severe. . ...[Details]

State Gold Strategy: Longer transition period in asset management

After long-awaited emancipation, the official draft of the new regulations for capital management was finally introduced, and the time was basically in line with market expectations. The two major points of view: 1. The grand principle has not been relaxed, but has been strengthened in the official draft of the new regulations for large capital management. ...[Details]

Official interpretation

  The relevant person in charge of the People's Bank of China answered a reporter’s question on “Guidelines on Regulating the Asset Management Business of Financial Institutions”

On April 27, 2018, with the approval of the State Council, the Guiding Opinions on Regulating the Asset Management Business of Financial Institutions (hereinafter referred to as “Opinions”) was officially released. Recently, the relevant person in charge of the People's Bank of China answered questions raised by reporters on issues related to the Opinions.

  First, publicly solicit opinions and how to absorb the situation?

With the approval of the State Council, the "Opinions" publicly solicited opinions from the public on November 17, 2017 for a period of one month. In the process of soliciting opinions, financial institutions, experts, scholars, and the general public have given extensive attention. The People's Bank of China, together with relevant departments, conducted repeated research and careful decision-making on feedback, fully absorbed scientific and reasonable opinions, and combined the results of market impact assessments, revised and improved the relevant provisions as follows.

In respect of investment in non-standardized debt assets, the Opinions clarify the core elements of standardized debt assets, propose regulatory measures such as deadline matching and limit management, and guide commercial banks to orderly compress non-standard stock sizes.

In terms of product net value management, the Opinions require that the asset management (hereinafter referred to as asset management) business not be able to promise to protect the original guaranteed income, specify the recognition and penalty standards for rigid redemption, encourage the measurement of financial assets at market value, and consider that some assets are still available. It does not have the conditions for measuring market value, taking into account market demands, and allowing financial assets that meet certain conditions to be measured at amortized cost.

In eliminating multiple levels of nesting, the "Opinions" unifies the regulatory standards for similar asset management products and requires the regulatory authorities to implement equal access to asset management operations and promote the equal ownership of asset management products, eliminating multiple layers of nesting from the root causes. motivation. At the same time, the nesting level is limited to one level, which prohibits multi-level nesting and channel services.

In respect of the level of unified leverage, the "Opinions" fully consider market demand and affordability, set different debt levers according to the risk grades of different products, and set different classification ratios for products that are allowed to be graded according to industry regulatory standards.

In terms of rationally setting up the transition period, through in-depth measurement and assessment, the Opinions will extend the transition period to the end of 2020, giving financial institutions sufficient time for adjustments and transitions. Non-standard assets such as those that have not yet expired after the end of the transition period have also been properly arranged to guide financial institutions back to the balance sheet to ensure market stability.

  2. What is the background for the formulation of the "Opinions"?

In recent years, the asset management business of China's financial institutions has developed rapidly and the scale has continued to climb. As of the end of 2017, the cross-holding factor has not been considered and the total size has reached one billion yuan. Among them, the balance of bank balance sheet financing products was 22.2 trillion yuan, and the trust balance of trust funds entrusted to trust companies was 21.9 trillion yuan. The fund management plans of public funds, private equity funds, securities companies, and fund and its subsidiaries’ asset management plans, The balance of the insurance asset management plan was 11.6 trillion yuan, 11.1 trillion yuan, 16.8 trillion yuan, 13.9 trillion yuan, and 2.5 trillion yuan respectively. At the same time, non-financial organizations such as Internet companies and various investment consulting companies are also very active in asset management.

The asset management business has played an active role in meeting the wealth management needs of residents, enhancing the profitability of financial institutions, optimizing the social financing structure, and supporting the real economy. However, due to the inconsistent regulatory rules and standards of similar asset management businesses, regulatory arbitrage activities are frequent, some products are nested in multiple layers, the risk base is unclear, and the liquidity pool model contains liquidity risks. Some products become channels for credit presentation, and rigid payment is required. In general, the formation of shadow banking outside of the formal financial system, to a certain extent, interfered with macro-control, raised social financing costs, affected the quality of financial services, and exacerbated cross-industry and cross-market delivery of risks. Under the leadership of the Party Central Committee and the State Council, the People's Bank of China, together with the Bank of China Insurance Regulatory Commission, the China Securities Regulatory Commission, the State Administration of Foreign Exchange, and other departments, persisted in the problem-oriented approach, starting from making up for regulatory shortcomings and improving the effectiveness of supervision. Based on the development and supervision practices of the asset management business of financial institutions in various industries, the Opinions have been formulated.

  3. What are the general ideas and principles of the "Opinions"?

The general idea of ​​the Opinions is to formulate uniform regulatory standards according to the type of asset management products, make consistent provisions for similar asset management businesses, implement fair market access and supervision, and eliminate regulatory arbitrage space to the greatest extent possible. The healthy development of business creates a good institutional environment.

The "Opinions" follow the following basic principles: First, adhere to the bottom line thinking of strictly controlling risks, reduce inventory risks, and strictly prevent incremental risks. The second is to uphold the fundamental goal of serving the real economy. It not only gives full play to the asset management function, effectively serves the investment and financing needs of the real economy, but also strictly regulates and guides, avoids the divestment of funds, prevents excessive product complexity and exacerbates risks across industries and markets. Transregional transfer. Third, adhere to the supervision concept of combining macro-prudential management and micro-prudential supervision, and combining institutional supervision with functional supervision, achieve comprehensive and uniform coverage of various asset management agencies, and adopt effective regulatory measures to strengthen financial consumer rights and interests. protection. Fourth, persist in problem-orientation with a focus on targeted issues, focusing on issues such as multi-level nesting of asset management, unclear leverage, serious arbitrage, and frequent speculation, and set uniform regulatory standards, and at the same time persist in making profits and avoiding financial innovation. For two, leave room for development. Fifth, adhere to an active, prudent and prudent approach, combine risk prevention with orderly regulation, fully consider market affordability, reasonably set up transition period, strengthen market communication, and effectively guide market expectations.

  What is the scope of application of the "Opinions"? Which agencies include which products?

The Opinions are mainly applicable to the asset management business of financial institutions, that is, financial institutions such as banks, trusts, securities, funds, futures, insurance asset management agencies, financial asset investment companies and other financial institutions accept investors' entrustment to invest in the assets of fiduciary investors. Managed financial services. Financial institutions perform good faith and diligence obligations and collect corresponding management fees for the interests of the trustee. The trustees bear the investment risks themselves and obtain profits. Financial institutions can receive reasonable performance compensation, but they must be included in the management fee and be one-by-one with the product. correspond. Asset management products include funds issued by non-principal-guaranteed financial products, capital trusts, securities companies, securities company subsidiaries, fund management companies, fund management subsidiaries, futures companies, futures company subsidiaries, insurance asset management agencies, and financial asset investment companies. Tube products. This opinion is not applicable to the asset securitization business carried out according to the rules promulgated by the financial management department and the pension products issued pursuant to the rules promulgated by the human resources and social security department.

In response to the chaos of the non-financial organization's violation of laws and regulations in the development of asset management business, the Opinions also follow the concept of “not allowed to engage in financial services without approval, and financial services must be subject to financial supervision”. It is clearly stated that unless otherwise provided by the State, non-financial institutions Do not issue or sell asset management products. "Except as otherwise provided by the state" mainly refers to the issuance and sale of private equity funds. Private equity investment funds apply special laws and administrative regulations for private equity funds. Where there is no explicit provision, the "Opinions" apply. The relevant provisions for venture capital funds and government-funded asset investment funds shall be formulated separately.

  5. What is the basis and purpose of the "Opinions" for the classification of asset management products? What are the main differences in the regulation of different types of products?

Classifying asset management products and applying uniform regulatory rules to similar products are the basis of the Opinions. The Opinion classifies asset management products from two dimensions. First, from the sources of funds, two types of public offerings and private placement products are divided according to the way they are raised. Public offerings are issued to the public with weak risk identification and affordability. The risk spillover is strong. The regulatory requirements in terms of investment scope, etc. are stricter than those of private equity products. They mainly invest in standardized debt assets and listed stocks, in addition to laws and regulations and financial management. Unless otherwise provided by the department, no investment may be made in the equity of unlisted companies. Private equity products are issued for qualified investors with strong risk identification and affordability. The regulatory requirements are relatively loose. They respect the autonomy of the market players. They can invest in debt assets, stocks listed or listed, unlisted stocks, and equity. ) Benefits and other assets that comply with laws and regulations. The second is from the use of funds, according to the nature of investment is divided into fixed income products, equity products, commodities and financial derivatives products, mixed products four categories. In accordance with the principle that the higher the investment risk is, the stricter the constraint of the grading lever is, and the different grading ratio limits are set, the information disclosure focus of various products is also different.

The purpose of classifying products from the above two dimensions is to: First, strengthen functional supervision in accordance with the principle of "substance over form". In practice, financial institutions in different industries develop asset management services and apply different regulatory rules and standards according to their types. This creates space for regulatory arbitrage. Therefore, it is necessary to classify asset management products according to business functions, and apply unified regulatory standards to similar products. . The second is to implement the concept of “appropriate products sold to suitable investors”: on the one hand, public offerings and private placement products correspond to two different types of investment groups, the public and qualified investors, reflecting the different requirements for the appropriate management of investors; On the one hand, asset management products are classified into different types according to the nature of investment, so as to distinguish product risk grades. At the same time, it is required to specify the product type when issuing asset management products, so as to avoid “crawling” and effectively protect financial consumers. rights and interests.

  6. In what aspects does the Opinion strengthen the qualification requirements and management responsibilities of financial institutions in the development of asset management operations?

The asset management business is a financial service that is “trusted by people and financially managed by others.” To protect the legitimate rights and interests of clients, the Opinions require financial institutions to meet certain qualification requirements and effectively perform management duties. First, financial institutions should establish a management system and management system that is compatible with the development of asset management business. The company has good governance and sound risk management, internal control and accountability mechanisms. Second, financial institutions should improve the qualifications, training, assessment, and accountability of asset management personnel to ensure that they have the necessary professional knowledge, industry experience, and management capabilities, and abide by the code of conduct and professional ethics. The third is the violation of relevant laws and regulations as well as the “Opinions” provisions of the financial institutions of financial management practitioners, according to the law to take penalties until the cancellation of qualifications.

  7. What are the criteria for the identification of standardized credit assets? How does the "Opinion" regulate the investment of non-standardized debt assets in asset management products?

The Opinions clarified that standardized creditor assets should have the following characteristics: equal differentiation, tradable, adequate disclosure of information, centralized registration, independent trusteeship, fair pricing, perfect liquidity mechanism, and trading in the trading market approved by the State Council. The specific determination rules shall be separately formulated by the People's Bank of China in conjunction with the financial supervision and management department. Debt assets other than standardized debt assets are non-standard assets.

Non-standard has the functions of maturity, liquidity and credit conversion, low transparency, weak liquidity, circumventing regulatory requirements such as macro-control policies and capital constraints, and partially investing in restrictive areas. The characteristics of shadow banking are obvious. To this end, the Opinions stipulate that investment in non-standard asset management products should comply with regulatory standards such as quota management and liquidity management by the financial supervision and management department, and strict deadline matching. The purpose of the above-mentioned regulations is to avoid asset management operations as a disguised form of credit business, prevent and control shadow banking risks, shorten the financing chain, reduce financing costs, and increase the efficiency and level of the financial services entity economy. While regulating non-standard investment, in order to better meet the financing needs of the real economy, it is also necessary to vigorously develop direct financing, build a multi-level capital market system, further deepen the reform of the financial system, and increase the efficiency and level of the financial service entity economy.

  8. How can the Opinions prevent the liquidity risk of asset management products? How to regulate the operation of capital pools in financial institutions?

In the process of developing asset management business, some financial institutions conduct capital pool operations on fundraising through rolling issuance, collective operations, and separate pricing. In this mode of operation, multiple asset management products correspond to multiple assets. The revenue of each product comes from which assets cannot be identified and the risk is difficult to measure. At the same time, the short-term funds raised will be put into long-term debt or equity projects, which will increase the liquidity risk of asset management products. Once it is difficult to raise follow-up funds, liquidity tends to be tight.

The “Opinions” require the financial institutions to strengthen product duration management on the basis of the prohibition of capital pool operations, the emphasis on separate management of asset management products, separate account construction, and separate accounting. The deadline for closed asset management products must not be less than 90 days. Correct the short-term tendency of asset management products, and effectively reduce and eliminate deadline misallocation and liquidity risks at the source and end of funds. In addition, the Opinion clearly prohibits the actions of some institutions through the establishment of multiple asset management products for a single financing project in a disguised way to break through the restrictions on the number of investors. In order to prevent the risk of the same assets from affecting more than one product, the Opinions require that the total amount of funds issued by the same financial institution for the issuance of multiple asset management products to the same asset shall not exceed 30 billion yuan. If it exceeds this scale, approval by the financial supervision and administration department is required.

  IX. What is the relationship between the provisions of the “Opinions” on the provision for risk reserves or capital measurement of asset management products and the relevant standards of various existing institutions? How are the two connected?

The asset management business is an off-balance-sheet business of a financial institution. The investment risk should be borne by investors themselves. However, in order to deal with operational risks or other unexpected risks, it is still necessary to establish a certain risk compensation mechanism and accrue corresponding risk reserves, or When capitalizing, consider relevant risk factors. At present, there are different requirements for capital reserve or capital measurement for asset management products in various industries: banks implement capital supervision, and measure a certain proportion of operational risk capital according to wealth management business income; securities company asset management plans, public funds, and fund-subsidiary specific customers The asset management plan and some insurance asset management plans provide a risk reserve according to the management fee income, but the proportions are not the same; the trust company makes provision for trust compensation according to 5% of the profit after tax.

Considering the current requirements comprehensively, the Opinions stipulate that financial institutions shall make a provision for risk in accordance with 10% of the income from the management of product-controlled products, or measure operational risk capital or corresponding risk capital reserves in accordance with regulations. When the risk reserve balance reaches 1% of the product balance, it can no longer be withdrawn. The risk reserve is mainly used to make up for losses caused by assets or assets of asset management products caused by financial institutions' violations of laws and regulations, violation of asset management product agreements, operational errors, or technical malfunctions. Financial institutions shall regularly report the use of risk reserves to the financial management department. It should be noted that, for financial institutions that do not currently use risk reserve provisions or capital measurement, such as trust companies, the "Opinions" do not require double accrual on this basis. Instead, the financial supervision and management department shall follow the "opinions". The standards are regulated in specific rules.

  X. Why should the rigid payment of asset management products be broken? How to implement product net value management?

The rigid redemption deviated from the essence of "acquisition of people and financial management by people" in asset management products, raised the level of risk-free yield, and interfered with the price of funds. This not only affected the market's decisive role in the allocation of resources, but also weakened market discipline. Some investors have ventured into speculation, and financial institutions have failed to perform due diligence and moral hazard is more serious. Breaking the rigid payment has become a social consensus and a series of detailed arrangements have been made for this opinion. First, in the definition of asset management business, financial institutions are required not to promise to guarantee the protection of profits, and the products cannot be redeemed in any form when they are difficult to redeem. Second, guide the financial institutions to change the expected rate of return model, strengthen the management of product net worth, and clarify the accounting principles. Thirdly, it is clear that the identification of rigid guaranty includes the protection of the product against the principle of determining the net value to protect the original income, the use of rolling issuance and other means to protect the proceeds, and to raise funds for itself or to commission compensation from other agencies. Fourth, categorize and punish. Depositing financial institutions incurred rigid payment, full repayment of deposit reserves and deposit insurance premiums, and non-deposit-type licensed financial institutions were corrected and punished by the financial supervision and management department and the People's Bank of China according to law. In addition, the auditing responsibilities and reporting requirements of external auditors have been strengthened.

In practice, some asset management products adopt the expected rate of return model and excessively use the amortized cost method to measure the investment in financial assets. The risks of basic assets cannot be reflected in the changes in the value of products in a timely manner. Investors are not aware of the magnitude of their own risks. There is a lack of risk awareness, and financial institutions convert the portion of their investment income that exceeds their expected revenue into management fees or directly into intermediary business income rather than giving them investors, and it is difficult to require investors to take risks at their own risk. In order to promote the transformation of the expected revenue-generating products into net-value products, allowing investors to take risks on the basis of clarifying the risks and enjoying the benefits, the Opinion emphasizes that the financial institutions' performance remuneration should be included in the management fee and correspond with the products. The financial institutions are required to strengthen the management of product net worth, and they are accounted for by custodians and audited by external auditors. At the same time, specific accounting principles are clearly defined. First, the financial assets required for investment in asset management products adhere to the principle of fair value measurement and encourage the use of market value measurement. At the same time, some assets that meet one of the following conditions are allowed to be measured at amortized cost: First, the product is closed-end operation, and the financial assets invested are subject to the contractual cash flow for the purpose of holding and expire; second, the product is closed-end operation, and The invested financial assets do not have an active trading market for the time being, or there is no quoted price in an active market, or reliable valuation of fair value using valuation techniques.

  XI. How to standardize the leverage level of asset management products?

In order to maintain the smooth operation of financial markets such as bonds and stocks, and to suppress asset price bubbles, the level of leverage of asset management products should be controlled. There are two types of leverage for asset management products. One is debt leverage, that is, after the product is raised, financial institutions increase their investment leverage through lending, pledged repurchase, and other debt activities; one is a classification leverage, that is, financial institutions prioritize products. In the case of post-bad share classification, priority investors provide financing leverage to inferior investors. In terms of debt leverage, the "opinions" set 140%, 200%, 140% and 200% of the debt ratio (open balance, closed public float, graded private equity and other private equity products) respectively (total assets/net assets). ) The upper limit prohibits financial institutions from using pledged product shares for pledge financing. In terms of grading products, the Opinion prohibits the share rating of public offerings and open private placement products. In a classified closed-end private equity product, the classification ratio of fixed income products (priority shares/inferior shares) must not exceed 3:1, the equity products must not exceed 1:1, and products and financial derivatives must be mixed. Products must not exceed 2:1.

  Twelve, how to eliminate multi-level nesting and limit channel services?

The multi-nesting of asset management products not only increases the complexity of the product, leading to unclear underlying assets, but also lengthens the capital chain and drives up social financing costs. The embedding of a large number of grading products also leads to the doubling of leverage and aggravation of market volatility. In order to fundamentally suppress the motives of multi-tiered nesting, the Opinions stipulate that asset management products should enjoy equal status in terms of account opening, property registration, and legal proceedings, and require financial supervision and administration departments to develop asset management services for various financial institutions. Equal access. At the same time, the standardization nesting level allows asset management products to reinvest in one-tier asset management products, but the investment products must not be reinvested in products other than public offering securities investment funds, and it is prohibited to carry out channel businesses that circumvent regulatory requirements such as investment scope and leverage constraints. Taking into account the reality, financial institutions with insufficient investment capacity can still entrust other institutions to invest, but they must not be exempted from their own responsibilities. The trustee of the public funded products must be a financial institution, and the trustee can no longer make entrustment.

  XIII. What are the specifications of the “Opinions” for smart investment services? What are the main considerations?

The development of financial science and technology is profoundly changing the service mode of the financial industry. In the field of asset management, it is prominently embodied in smart investment consultants. In recent years, smart investment advisors have risen rapidly in the US market and have also developed rapidly in China. Dozens of organizations have already launched this business. However, the use of artificial intelligence technology to carry out investment consulting, asset management and other services, because the service targets are mostly long-tailed customers, risk tolerance is low, if the appropriate management of investors, risk tips are not in place, easily lead to instability. Moreover, homogeneity of the algorithm may trigger pro-cyclical high-frequency trading, exacerbating market fluctuations. The “black box properties” of the algorithm may also make it a tool to evade supervision. Technological limitations, cyber security and other risks cannot be ignored. To this end, the "Opinions" from a forward-looking point of view, distinguish between financial institutions using artificial intelligence technology to carry out investment consultants and asset management business in two cases, were standardized. On the one hand, agencies that have obtained investment advisory qualifications can use artificial intelligence technologies to conduct investment advisory services if they have the appropriate technical conditions. Non-financial institutions must not rely on smart investment consultants to operate beyond their scope or disguisely develop asset management services. On the other hand, when financial institutions use artificial intelligence technology to develop asset management business, they must not exaggerate or mislead investors. They should report the main parameters of the model and the main logic of asset allocation, clarify the transaction process, strengthen the management of leave marks, and avoid algorithm homogenization. When human herd effects are caused by defects in the algorithm model or abnormal information systems, human intervention should be mandatory.

  XIV. What is the regulatory philosophy for asset management? What are the measures for regulatory coordination?

In view of the drawbacks arising from the differences in standards under the supervision of separate industries, the strengthening of supervision and coordination, the strengthening of macro-prudential management, and the implementation of functional supervision in accordance with the principle of “substantial rather than formal” are necessary measures to regulate asset management operations. The Opinions clarified that the People's Bank of China is responsible for the macroprudential management of asset management businesses, and that the unified regulatory standards should be adopted in accordance with the product type rather than the organization type. The same regulatory standards should be applied to similar products to reduce the regulatory vacuum and eliminate the arbitrage space. Financial supervision and management departments must strengthen functional supervision in the market access and daily supervision of asset management operations. The People's Bank of China took the lead in establishing a unified reporting system and information system for asset management products, and conducted real-time, comprehensive, and dynamic monitoring of all aspects of product sales, investment, redemption, etc., laying a solid foundation for penetrating supervision. Continue to strengthen supervision and coordination, financial supervision and management departments in the "Opinions" within the framework of the study and development of supporting specifications, matching rules must be linked to each other, to avoid the emergence of new regulatory arbitrage and unfair competition.

  15. What regulations do non-financial institutions need to comply with when starting asset management business?

At present, in addition to financial institutions, non-financial institutions such as Internet companies and various investment consulting companies are also active in asset management. Due to lack of market access and continuous supervision, problems such as product dismantling, misleading propaganda, and capital infringement are prominent. It has even evolved into illegal fund-raising, illegal absorption of public deposits, illegal issuance of securities, disruption of financial order and threats to social stability. In order to standardize the market order and earnestly protect the legitimate rights and interests of investors, the Opinion clearly states that asset management services must be incorporated into financial supervision as a financial business, and non-financial institutions must not issue or sell asset management products, unless otherwise stipulated by the State. "Except as otherwise provided by the State" mainly refers to the issuance and sale of private equity investment funds. Private equity investment funds apply special laws and administrative regulations for private equity investment funds. If there is no specific provision in private investment fund specific laws or administrative regulations, the "Opinions" apply. Non-financial institutions and individuals may not sell products under their management without the permission of the financial supervision and administration department. In response to illegal and non-financial institutions launching asset management operations, especially the use of Internet platforms, such as the sale of investment targets with investment thresholds, through credit enhancement measures to cover product risks, the establishment of secondary product trading market, etc., in accordance with national regulations Specification cleanup. If a non-financial institution illegally launches an asset management business, it shall be punished according to law. At the same time, if it promises or carries out rigid payment, it shall be given a heavier punishment in accordance with the law.

  16. How to set up the transition period of "Opinions"? How to implement "new and old demarcation"?

In order to ensure a smooth transition, the Opinion fully considers the duration and scale of the asset management products, the market size and the duration and scale of the assets it invests, taking into account the reasonable issuance of incremental asset management products, and proposes setting up a transition period based on the “new and old delimitation” principle. . The transitional period is set to be “from the date of the release of the Opinions to the end of 2020.” Compared with the consultation draft, the period of time is extended by one and a half years, giving financial institutions more time for rectification and transformation. During the transitional period, financial institutions issuing new products shall meet the requirements of the Opinions; in order to maintain the necessary liquidity and market stability for the unexpired assets invested in the stock products, old products may be issued for docking, but they should be strictly controlled. Within the overall scale of the product, it will be compressed and diminished in order to prevent the cliff-breaking effect at the end of the transitional period. Financial institutions also need to formulate rectification plans during the transitional period, specify time schedules, and submit them to the relevant financial supervision and management departments for approval and supervision. At the same time, they shall report to the People’s Bank of China and provide appropriate supervision to the institutions that have completed the rectification in advance. excitation. After the end of the transitional period, the asset management products of financial institutions are fully regulated in accordance with the Opinions (except when the factor company has not yet been established and fails to meet the requirements for third-party independent trusteeship), and financial institutions may not issue or continue to violate the provisions of the Opinions. Asset management products.

New Regulations on Asset Management

  Guidelines of the People's Bank of China, the China Banking Insurance Regulatory Commission, the China Securities Regulatory Commission, and the State Administration of Foreign Exchange on Regulating the Asset Management Business of Financial Institutions

In recent years, the rapid development of China's asset management business has played an active role in satisfying the investment and financing needs of residents and enterprises, and improving the social financing structure. However, there are some cases in which business development is not standardized, multi-level nesting, rigid payment and evasion of financial supervision. And macro-control issues. In accordance with the decisions of the Party Central Committee and the State Council, in order to standardize the asset management business of financial institutions, unified supervision standards for similar asset management products, effectively prevent and control financial risks, guide social capital to the real economy, and better support economic restructuring and transformation and upgrading. Agreed, the following comments are proposed:

I. Regulating the asset management business of financial institutions mainly follows the following principles:

(1) Adhere to the bottom line thinking of strictly controlling risks. Putting prevention and mitigation of asset management business risks at a more important position, reducing inventory risks and preventing incremental risks.

(B) Adhere to the fundamental goal of serving the real economy. It not only gives full play to its asset management business functions, it effectively serves the investment and financing needs of the real economy, but also strictly regulates and guides, avoids the self-recycling of funds within the financial system and avoids over-complexity of products, and exacerbates risk transmission across industries, markets, and regions. .

(3) Adhering to the supervision concept of combining macro-prudential management with micro-prudential supervision, institutional supervision and functional supervision. Realize comprehensive and unified coverage of various asset management businesses in various institutions, adopt effective regulatory measures, and strengthen the protection of financial consumer rights and interests.

(d) Adhere to the problem-oriented orientation. Focusing on issues such as multi-level nesting, unclear arbitrage, arbitrage, and frequent speculation, the asset management business has set unified standards and regulations, and at the same time persisted in pursuing profit and avoidance of financial innovation, dividing it into two areas, leaving room for development.

(e) Adhere to active, prudent and cautious progress. Correctly handle the relationship between reform, development, and stability, adhere to the combination of risk prevention and orderly regulation, and at the same time make up their minds to deal with risk, fully consider the market's ability to bear, set a reasonable transition period, grasp the order, pace, and strength of work, and strengthen market communication. Effectively guide market expectations.

2. Asset management business refers to the financial services that financial institutions such as banks, trusts, securities, funds, futures, insurance asset management agencies, financial assets investment companies and other financial institutions accept investment from investors and invest in and manage the assets of the entrusted investors. Financial institutions perform good faith and diligence obligations for the interests of the trustees and collect corresponding management fees. The trustees take their own risks and gain profits. A financial institution may prearrange a reasonable performance remuneration in the contract with the principal, and the remuneration for the performance shall be included in the management fee. It shall be one-to-one corresponding to the products and settled one by one. Different products may not be used together.

The asset management business is an off-balance-sheet business of a financial institution. A financial institution may not promise to protect its original income while carrying out its asset management business. When there is difficulty in redemption, financial institutions may not use any form of cash advancement. Financial institutions must not carry out asset management operations within the table.

Private equity investment funds apply the special laws and administrative regulations of private equity funds, and private investment funds special laws and administrative regulations do not clearly stipulate the application of this opinion. The relevant provisions of venture capital funds and government-funded asset investment funds shall be formulated separately.

III. Asset management products include, but are not limited to, non-private bank wealth management products in the form of RMB or foreign currency, capital trusts, securities companies, securities company subsidiaries, fund management companies, fund management subsidiaries, futures companies, futures company subsidiaries, and insurance assets. Management agencies, asset management products issued by financial asset investment companies, etc. The asset securitization business carried out pursuant to the rules promulgated by the financial management department is not applicable to the pension products issued pursuant to the rules promulgated by the human resources and social security department.

IV. Asset management products are divided into public offerings and private placement products according to the different types of offerings. Public offerings are publicly available to unspecified people. The standards for public issuance are in accordance with the “PRC Securities Law”. Private equity products are issued to qualified investors in a private manner.

Asset management products are classified into fixed income products, equity products, commodities and financial derivative products and mixed products according to the nature of investment. The proportion of fixed income products invested in credit assets such as deposits and bonds is not less than 80%, and the proportion of equity products invested in equity, such as stocks and unlisted companies, is not less than 80%. Commodity and financial derivatives products The proportion of investment in commodities and financial derivatives is not less than 80%. Mixed products are invested in credit assets, equity assets, commodities and financial derivatives, and the investment ratio of any asset does not reach the first three product standards. If the financial institution is not subject to the above-mentioned ratio limitation due to the subjective factors of the financial institution, the financial institution shall adjust to meet the requirements within 15 trading days when the liquidity-limited asset can be sold, transferred or resumed.

When issuing financial management products, financial institutions shall express the type of asset management products to investors in accordance with the above classification criteria, and make investments in accordance with the determined product nature. The product type may not be changed without authorization until after the product is established until the expiration date. The scope of the ratio of investment in credit assets, equity assets, commodities and financial derivatives of mixed products should be determined at the time of product issuance and clearly stated to investors. No change shall be allowed in the period after the products are established until the expiration date. The actual investment of the product must not violate the contractual agreement. If there is any change, except for high-risk products that exceed the proportion of investment in lower-risk assets, they should obtain the written consent of the investor, and fulfill the laws and regulations of the registration and filing, and the provisions of the financial supervision and management department. program of.

V. The investors of asset management products fall into two categories: unspecified public and qualified investors. Qualified investors are natural and legal persons or other organizations that have the ability to identify risks and bear risks and invest in a single asset management product that is not lower than a certain amount and meets the following conditions.

(1) Having an investment experience of more than 2 years and satisfying one of the following conditions: the family financial net assets are not less than 3 million yuan, the household financial assets are not less than 5 million yuan, or the average annual income in the past 3 years is not less than 40 Ten thousand yuan.

(2) Legal entities with net assets of no less than 10 million yuan at the end of the current year.

(3) Other situations that the financial management department regards as qualified investors.

Qualified investors investing in a single fixed income product not less than 300,000 yuan, investing in a single hybrid product not less than 400,000 yuan, investing in a single equity product, a single commodity and financial derivatives The amount of category products is not less than 1 million yuan.

Investors may not use assets such as loans and bonds issued to invest in asset management products.

6. When financial institutions issue and sell asset management products, they shall adhere to the business philosophy of "knowing products" and "knowing customers", strengthen the management of appropriateness of investors, and sell asset management to investors in accordance with their risk identification capabilities and risk bearing capabilities. product. It is prohibited to fraudulently or mislead investors to purchase assets management products that do not match their risk bearing capacity. Financial institutions may not sell assets management products to investors whose risk identification ability and risk bearing capacity are lower than the product risk level by splitting asset management products.

Financial institutions should strengthen investor education, continuously raise investors' financial knowledge and awareness of risks, and pass on the concept of “the seller’s responsibility and the buyer’s responsibility” to investors, and break the rigid payment.

7. Financial institutions conducting asset management operations shall have a management system and management system that are compatible with the development of asset management business. The company has good governance and sound risk management, internal control and accountability mechanisms.

Financial institutions should establish and improve qualifications, training, assessment, and accountability systems for asset management business personnel to ensure that personnel engaged in asset management operations have the necessary professional knowledge, industry experience, and management capabilities, and fully understand the relevant laws, regulations, and regulatory requirements. The legal relationship, transaction structure, major risks and risk management and control methods of asset management products comply with the code of conduct and professional ethics standards.

For those who violate the relevant laws and regulations as well as the provisions of this opinion, the financial institutions of the asset management business practitioners, according to the law to take penalties until the cancellation of qualifications, prohibiting them from engaging in other types of financial institutions in asset management business.

8. Where financial institutions use their entrusted funds for investment, they shall abide by the rules of prudent operation, formulate scientific and reasonable investment strategies and risk management systems, and effectively prevent and control risks.

Financial institutions shall perform the following responsibilities of managers:

(1) Raising funds in accordance with the law to handle the sale and registration of product shares.

(2) To handle product registration or registration procedures.

(3) Separately manage and record the trusteeship of the different products under management, and make investments.

(4) Determine the income distribution plan according to the stipulations of the product contract, and distribute income to investors in a timely manner.

(5) To conduct product accounting and prepare product financial accounting reports.

(6) Calculate and disclose the net value of products or investment income according to law, and determine the purchase and redemption prices.

(7) To handle information disclosure related to the business activities of the entrusted property management.

(8) The records, books, statements and other relevant information for the preservation of the property management business of the trustee.

(9) To exercise procedural rights or perform other legal acts on behalf of investors in the name of the administrator.

(10) When redeeming the entrusted funds and proceeds, the financial institution shall ensure that the entrusted funds and proceeds are returned to the original account of the principal, the account of the same name, or the beneficiary's account as stipulated in the contract.

(11) Other duties stipulated by the financial supervision and administration department.

If a financial institution fails to perform its entrusted management responsibilities in accordance with the principle of good faith and due diligence and causes loss to investors, it shall be liable to investors for compensation according to law.

IX. Financial institutions' sales of asset management products issued by other financial institutions shall meet the qualification conditions stipulated by the financial supervision and administration department. Without the permission of the financial supervision and management department, any non-financial institution or individual may not sell assets management products.

A financial institution shall establish a sales authorization management system for asset management products, clarify the admission standards and procedures of the sales agency, clearly define the rights and obligations of both parties, and clearly define the responsibilities and methods of transfer of related risks.

Financial institutions that sell asset management products through agency sales shall establish appropriate internal approval and risk control procedures, conduct due diligence on the credit status, management and management capabilities, market investment capabilities, and risk disposal capabilities of issuing or management institutions, and require the issuance or management organizations to provide due diligence. Detailed product introduction, relevant market analysis and risk and income estimation report, and full information verification and risk review to ensure that the products sold by the agent meet the requirements of this opinion and bear corresponding responsibilities.

X. Public offerings The main investment in standardized creditor assets and listed stocks are not allowed to invest in shares of unlisted companies, except where otherwise required by laws, regulations and financial management departments. Public offerings can invest in commodities and financial derivatives, but they should comply with laws, regulations, and relevant regulations of the financial management department.

The scope of investment in private equity products is stipulated in the contract, and can be used to invest in debt assets, stocks listed or listed, non-listed equity (including debt-to-equity swaps), and income (income) rights, as well as other assets that comply with laws and regulations, and strictly Compliance with investor suitability management requirements. Encourage the full use of private equity products to support market-based, legalized debt-to-equity swaps.

XI. Investment in asset management products shall comply with the following provisions:

(1) Standardization of creditor assets should meet the following conditions:

1, such differentiation, can be traded.

2. Full disclosure of information.

3, centralized registration, independent trusteeship.

4. Fair pricing and perfect liquidity mechanism.

5. Transactions in the interbank market, stock exchange market, etc. agreed upon by the State Council.

The specific rules for the identification of standardized creditor assets shall be separately formulated by the People's Bank of China in conjunction with the financial supervision and administration department.

Debt assets other than standardized debt assets are all non-standardized debt assets. Where a financial institution issues assets management products and invests in non-standardized debt assets, it shall abide by regulatory standards such as quota management and liquidity management formulated by the financial supervision and administration department. Where the financial supervisory and administrative department fails to formulate relevant supervisory standards, the People's Bank of China supervises and urges the formulation of supervisory standards in accordance with the requirements of this opinion and implements them.

Financial institutions must not directly invest capital of asset management products in credit assets of commercial banks. The investment restrictions on commercial banks' credit assets subject to (income) benefit rights shall be separately formulated by the financial management department.

(2) Asset management products may not directly or indirectly invest in laws, regulations, or national policies. Industries and fields in which creditor's rights or equity investments are prohibited are prohibited.

(3) Encouraging financial institutions to raise capital through the issuance of asset management products on the premise of legal compliance and commercial sustainability, investing in areas that meet the requirements of national strategies and industrial policies, and meet the structural reform policy requirements of the country's supply side. Encourage financial institutions to raise funds through the issuance of asset management products to support economic restructuring, support marketization, convert debts by rule of law, and reduce corporate leverage.

(4) Cross-border asset management products and businesses shall be implemented with reference to this opinion, and shall comply with the relevant provisions on cross-border RMB and foreign exchange management.

XII. Financial institutions shall actively, truthfully, accurately, completely, and timely disclose information on asset management products, capital investment, leverage levels, income distribution, trusteeship arrangements, investment account information, and major investment risks, etc., to investors. Where national laws and regulations provide otherwise, they shall be stipulated.

For public offerings, financial institutions should establish a strict information disclosure management system, specify periodic reports, ad hoc reports, announcements of major events, investment risk disclosure requirements, and specific contents and formats. The company's official website or through the easy accessibility of investors to disclose the product's net worth or investment income, and regularly disclose other important information: open products disclosed in accordance with the opening frequency, closed products disclosed at least once a week.

For private equity products, the information disclosure method, content and frequency are stipulated in the product contract, but financial institutions should disclose the net product value and other important information to investors at least every quarter.

For fixed-income products, financial institutions should fully disclose and prompt investors’ investment risks by highlighting them, including but not limited to market risks such as interest rates and exchange rate changes in bond products, bond bond price fluctuations, and product investment. Non-standardized debt asset financing customers, project names, remaining financing terms, maturity income distribution, transaction structure, risk status, etc.

For equity products, financial institutions should fully disclose and promptly disclose investment risks to investors, including the risks faced by product investment stocks and fluctuations in stock prices.

For commodities and financial derivatives products, financial institutions shall fully disclose the linked assets of the products, risk of positions, control measures and changes in the fair value of derivatives through eye-catching methods.

For mixed products, financial institutions shall clearly disclose the investment asset portfolio of the product to investors through eye-catching, and fully disclose and prompt corresponding investment risks according to the ratio of investment in fixed income, equity, commodities and financial derivatives.

XIII. A financial institution whose main business does not include asset management business should establish an asset management subsidiary with an independent legal person status to carry out asset management business and strengthen legal person risk isolation. A special asset management business operation department can be set up if it does not have conditions for the time being. business.

Financial institutions may not provide any direct or indirect, explicit or implicit guarantees, repurchases or other commitments to undertake risks for non-standardized debt assets or equity assets of assets management products.

When a financial institution launches an asset management business, it shall ensure that the asset management business is separated from other businesses, the asset management product is separated from the financial products it sells, the asset management products are separated, and the asset management business operations are separated from other business operations.

14. After the issuance of this Opinion, the asset management product assets issued by a financial institution shall be independently escrowed by a third-party institution with custodian qualification, unless otherwise provided for in laws and administrative regulations.

During the transitional period, a commercial bank with the qualification of a securities investment fund custody business may host the Bank's wealth management products, but it should open separate custody accounts for each product to ensure asset isolation. After the transitional period, a commercial bank with the qualification of a securities investment fund custody business shall establish a subsidiary with an independent legal person status to carry out asset management business. The commercial bank may hold asset management products issued by subsidiaries, but it should achieve substantial independent trusteeship. The independent trusteeship is nominal, and the financial supervision and management department will correct and punish it.

15.Financial institutions shall ensure that the funds of each asset management product are managed separately, accounted for separately, and accounted for separately, and may not carry out or participate in fund pool businesses that have the characteristics of rolling issuance, collective operations, and separate pricing.

The financial institution shall reasonably determine the time limit for the assets invested by the asset management products and strengthen the liquidity risk management over the mismatch of maturity. The financial supervision and administration department shall formulate regulations on liquidity risk management.

In order to reduce the risk of maturity mismatch, financial institutions should strengthen the duration management of asset management products, and the duration of closed asset management products must not be less than 90 days. Where an asset management product is directly or indirectly invested in a non-standardized debt asset, the date of termination of the non-standardized debt asset may not be later than the due date of the closed asset management product or the latest open date of the open asset management product.

Where an asset management product directly or indirectly invests in the equity of an unlisted enterprise and its rights to receive (receive) income, it shall be a closed asset management product and specify the exit arrangements for the equity and its rights to receive (receive) income. The exit date of the shares of the unlisted company and its rights to receive (income) benefits shall not be later than the due date of the closed asset management product.

Financial institutions must not violate the regulations of the financial supervision and management department, and through the establishment of multiple asset management products for a single financing project, disguisedly exceed the number of investment restrictions or other regulatory requirements. If the same financial institution issues more than one asset management product and invests in the same asset, in order to prevent the risk of the same asset from affecting more than one asset management product, the total amount of funds invested by multiple asset management products into the asset shall not exceed 30 billion yuan. If this limit is exceeded, it must be approved by the relevant financial supervision and management department.

16. Financial institutions shall ensure that the risk level of the assets invested by each asset management product matches the investor's risk bearing capacity, so that the assets invested by each product constitute a clear structure and the risks are identifiable.

Financial institutions should control the concentration of assets invested by asset management products:

(1) The market value of a single public asset management product investment in a single securities or a single securities investment fund may not exceed 10% of the net assets of the asset management product.

(2) The market value of single securities or single securities investment funds invested by the same financial institution issued by all public equity management products shall not exceed 30% of the market value of the securities or the market value of the securities investment funds. Among them, all the shares of the same financial institution that are issued by an open-ended public asset management product invested by a single listed company may not exceed 15% of the tradable shares of the listed company.

(3) All the asset management products of the same financial institution The stocks issued by a single listed company must not exceed 30% of the tradable shares of the listed company.

Unless otherwise specified by the financial supervision and management department.

If the financial institution is not subject to the above-mentioned ratio limitation due to the subjective factors of the financial institution, the financial institution shall adjust the relevant requirements within 10 trading days of the sale, transfer or resumption of trading of the restricted assets.

17. Financial institutions shall provide a risk reserve according to 10% of the management product management fee income, or measure the operational risk capital or the corresponding risk capital reserve according to regulations. When the risk reserve balance reaches 1% of the product balance, it can no longer be withdrawn. The risk reserve is mainly used to make up for losses caused to asset management products by investors or investors due to violations of financial institutions, violations of asset management product agreements, operational errors, or technical malfunctions. Financial institutions shall regularly report the use of risk reserves to the financial management department.

18. Financial institutions shall implement net value management of asset management products. The net value shall be generated in accordance with the provisions of the enterprise accounting standards, and timely reflect the income and risks of the basic financial assets. The custodian shall perform the accounting and provide regular reports, which shall be audited by an external auditor. It is confirmed that the audited financial institution shall disclose the audit result and submit it to the financial management department at the same time.

Financial assets adhere to the principle of fair value measurement and encourage the use of market value measurement. Those that meet one of the following conditions may be measured at amortized cost according to the accounting standards of the enterprise:

(1) Asset management products are closed products, and the financial assets they invest in are subject to the contractual cash flow and are held until maturity.

(2) Asset management products are closed-end products, and the financial assets they invest temporarily do not have an active trading market, or they have no quoted price in an active market or reliable valuation of fair value using valuation techniques.

Financial institutions that measure the net value of financial assets at amortized cost should use appropriate risk control measures to assess the fairness of the net value of financial assets. When the measurement of amortized cost indicates that the net value of financial assets cannot be truly and fairly reflected, the custodian institution shall supervise the financial institutions to adjust the accounting and valuation methods. The degree of deviation between the weighted average price of financial assets measured at amortized cost in financial institutions in the previous period and the value of the financial assets actually paid for asset management products must not exceed 5% or more, if the number of products deviating from 5% or more exceeds the total number of products issued At 5%, financial institutions may no longer issue asset management products that measure financial assets at amortized cost.

19. The financial management department determines that the following behaviors are regarded as rigid payment:

(1) The issuer or manager of an asset management product violates the principle of determining the net value of real fairness, and guarantees the product to protect the original income.

(2) Rolling issuance and other methods will enable the capital, income, and risk of asset management products to be transferred among different investors and achieve product-guaranteed and guaranteed revenue.

(3) Where the asset management product cannot be redeemed or paid in due time, the financial institution that issues or manages the product shall raise funds for itself or commission other institutions to pay for it.

(4) Other circumstances as identified by the financial management department.

If it is determined that there is a rigid payment, the following two types of institutions will be punished:

(1) When rigid deposits are made by a depository financial institution, it is determined that the use of asset management products with the essential characteristics of deposits will be used to carry out regulatory arbitrage. The banking insurance supervision and administration institution of the State Council and the People's Bank of China shall regulate the deposits in accordance with the deposit business, and make full preparations for deposits. Gold and deposit insurance premiums and impose administrative penalties.

(2) If a non-deposit-style licensed financial institution commits a rigid payment, it shall be deemed to have violated the regulations. The financial supervision and management department and the People's Bank of China shall rectify and impose penalties according to law.

Any unit or individual that discovers that a financial institution has a rigid redemption behavior may report it to the financial management department, verify it is true, and report it without the relevant department, give appropriate incentives.

When an external audit institution conducts an audit on a financial institution, if it finds that the financial institution has a rigid payment, it shall promptly report to the financial management department. In the audit process, the external auditing agencies failed to perform due diligence, pursued corresponding responsibilities according to law or imposed administrative penalties according to law, and incorporated related information into the national credit information sharing platform to establish a joint disciplinary mechanism.

20. The asset management product should set a ceiling on the proportion of debt (total assets/net assets), and the same kind of products should apply a uniform liability ratio ceiling. The total assets of each open-ended public offering may not exceed 140% of the net assets of the product. The total assets of each closed-end public offering and each private placement product may not exceed 200% of the net assets of the product. When calculating the total assets of a single product, the total assets of the asset management product invested should be combined in accordance with the principle of penetration.

Financial institutions may not use the asset management products entrusted with the management to carry out pledge financing and enlarge their leverage.

Twenty-one, public offerings and open private equity products may not be divided into shares.

The total assets of a classified private placement product must not exceed 140% of the net assets of the product. Classified private equity products should be based on the degree of risk of the invested assets to set the classification ratio (priority share/inferior share, intermediate share in priority share). The classification ratio of fixed income products shall not exceed 3:1, and the classification ratio of equity products shall not exceed 1:1. The classification ratio of products and financial derivatives and mixed products shall not exceed 2:1. A financial institution that issues a graded asset management product shall autonomously manage the asset management product, and shall not transfer it to inferior inferior investors.

Graded asset management products may not directly or indirectly provide priority guarantees to those who subscribe to priority shares.

The term "asset-class asset management products" as mentioned in this Article refers to products in which there is a share above the first-level share to provide certain risk compensation for other-level shares, and the income distribution is not calculated according to the proportion of share, and the asset management contract shall be agreed separately.

22. Financial institutions shall not provide channel services for asset management products of other financial institutions to circumvent regulatory requirements such as investment scope and leverage constraints.

Asset management products can be reinvested in a layer of asset management products, but the asset management products they invest cannot be reinvested in asset management products other than public offering securities investment funds.

Where a financial institution invests asset management products in asset management products issued by other institutions, thereby entrusting its own asset management product funds to other institutions for investment, the trustee institution shall be a financial supervisory and administrative department with professional investment capabilities and qualifications. Regulatory agency. The trustee of public asset management products should be a financial institution, and the trustee of private equity management products can be a private equity fund manager. The trustee shall earnestly perform the duties of active management, and shall not conduct transfer commissions and may not reinvest in asset management products other than public offering securities investment funds. The entrusting agency shall carry out due diligence investigations on the trustee institutions, implement list management, clearly specify the access standards and procedures, responsibilities and obligations of the trustee, duration management, interest conflict prevention mechanism, information disclosure obligation, and exit mechanism. The entrusted institution shall not be exempted from its own responsibilities by investing in other institutions.

Financial institutions may employ professionally qualified institutions supervised by financial supervision and management departments as investment advisors. Investment advisers provide investment advice to guide commissioning agencies.

The financial supervision and administration department and the relevant state departments shall implement equal access and fair treatment for all types of financial institutions to carry out asset management business. Asset management products should enjoy equal status in terms of account opening, property registration, and legal proceedings. The financial supervision and administration department shall, upon consideration of risk prevention and control, really need to impose restrictions on asset management products issued by other industrial financial institutions, it shall fully solicit the opinions of relevant departments and reach an agreement.

23. The use of artificial intelligence technology to carry out investment consultancy business shall obtain the qualifications of investment consultants. Non-financial institutions shall not rely on smart investment consultants to operate beyond the scope or disguise to carry out asset management business.

Financial institutions that use artificial intelligence technology to carry out asset management operations shall strictly abide by the general provisions of this opinion concerning the appropriateness of investors, investment scope, information disclosure, and risk isolation, and shall not use the artificial intelligence services to exaggerate the promotion of asset management products or mislead investors. Financial institutions shall report the main parameters of the artificial intelligence model and the main logic of asset allocation to the financial supervision and management department, and set up a separate intelligent management account for investors, fully prompting the inherent defects and usage risks of artificial intelligence algorithms, clarifying the transaction process, and strengthening the Trace management strictly monitors the trading positions, risk limits, transaction types, and price permissions of intelligent management accounts. Where financial institutions cause losses to investors due to illegal or improper management, they shall be liable for damages in accordance with the law.

Financial institutions should develop corresponding artificial intelligence algorithms or programmatic transactions based on different product investment strategies to avoid homogenization of the algorithm and increase the pro-cyclicality of investment behavior, and formulate response plans for the market fluctuation risks that may arise. If due to algorithm homogeneity, programming errors, insufficient depth of data utilization, artificial intelligence algorithm model defects, or system abnormalities, resulting in herding effects and affecting the stable operation of the financial market, financial institutions shall promptly adopt manual intervention measures to force adjustment or termination. Artificial intelligence business.

24. Financial institutions shall not use unlawful transactions, interest transfers, insider trading, and market manipulation with funds from asset management products and related parties, including but not limited to investing in related party false items, jointly acquiring listed companies with related parties, and This institution injects capital, etc.

Where an asset management product of a financial institution invests in securities issued or underwritten by its own institution, custodian institution and its controlling shareholder or actual controller, or engages in other major related-party transactions, it shall establish and improve internal approval mechanisms. Assess the mechanism and fully disclose information to investors.

25. Establish a unified reporting system for asset management products. The People's Bank of China is responsible for coordinating the data encoding and comprehensive statistical work of asset management products, working together with the financial supervision and management department to formulate a statistical system for asset management products, establishing an asset management product information system, and standardizing and unifying product standards, information classification, codes, and data formats. Only product statistics basic information, raise information, assets and liabilities information and termination information. The People's Bank of China and financial supervision and management departments have strengthened the sharing of statistical information on asset management products. Financial institutions shall send asset management product information with debt investment to the financial credit information basic database.

Within five working days after the establishment of each asset management product, financial institutions shall submit basic product information and initial information to the People's Bank of China and the financial supervision and management department at the same time; Liabilities information, submit termination information within 5 working days after the product is terminated.

Central Government Securities Debt Settlement Co., Ltd., China Securities Depository and Clearing Corporation Limited, Interbank Market Clearing Corporation Limited, Shanghai Stock Exchange Co., Ltd., Shanghai Gold Exchange, Shanghai Insurance Exchange Co., Ltd., and China Insurance Insurance Asset Register Transaction System Co., Ltd. shall submit to the People's Bank of China and the Financial Supervision and Administration Department at the same time the information of the financial instruments registered and managed by the asset management products at the same time.

Prior to the official operation of the asset management product information system, the People's Bank of China, together with the financial supervision and management department, formulated a unified transition data submission template based on the statistical system; each financial supervision and management department issued monthly asset management products to financial institutions of the Recently, according to the data submission template, the Bank provided data to the People's Bank of China and timely communicated major cross-industry and cross-market risk information and events.

The People's Bank of China supervises and inspects the statistical work of asset management products of financial institutions. The specific system of asset management product statistics is formulated by the People's Bank of China in conjunction with relevant departments.

26. The People's Bank of China is responsible for implementing macro-prudential management of its asset management business and, in conjunction with the financial supervision and administration department, formulates standard regulations for the asset management business. The financial supervision and administration department will implement market access and daily supervision of asset management business and strengthen investor protection. In accordance with this opinion, the People's Bank of China shall formulate detailed rules for the implementation of respective regulatory areas.

After the official implementation of this opinion, the People's Bank of China will establish a working mechanism with the financial supervision and management department to continuously monitor the development and risk profile of the asset management business, regularly evaluate the effectiveness of the regulatory rules and market impacts, and promptly revise and improve the continued soundness of the asset management industry. development of.

27. The supervision of the asset management business follows the following principles:

(1) The combination of institutional supervision and functional supervision, and the implementation of functional supervision in accordance with the product type rather than the type of organization, the same type of asset management product applies the same regulatory standard, reducing regulatory vacuum and arbitrage.

(2) Implement penetrating supervision, and for multi-level nested asset management products, identify the ultimate investor of the product and identify the underlying assets of the product downwards (except public equity investment funds).

(III) Strengthen macro-prudential management, establish a macro-prudential policy framework for asset management business, improve policy tools, and strengthen monitoring, evaluation, and adjustment from a macroscopic, countercyclical, and cross-market perspective.

(4) To realize real-time supervision, conduct comprehensive and dynamic supervision on the issuance, sales, investment, redemption and other aspects of asset management products, and establish a comprehensive statistical system.

28. The financial supervision and management department shall, in accordance with the provisions of this opinion, formulate and improve penalties for violations, impose penalties according to law, and ensure that the penalties are the same. Where the asset management business violates the requirements of macro-prudential management, the People's Bank of China shall impose penalties in accordance with laws and regulations.

29. After the implementation of this opinion, the financial supervision and management department shall research and formulate the supporting rules within the framework of this opinion. The supporting rules shall be linked to each other so as to avoid the occurrence of new regulatory arbitrage and unfair competition. In accordance with the "new and old delimitation" principle, set up a transition period to ensure a smooth transition. The transition period will be the end of the period from the date of the release of this opinion to the end of 2020, and appropriate incentives for supervision will be given to institutions that have completed the rectification in advance. During the transitional period, financial institutions issuing new products shall meet the requirements of this opinion; to maintain the necessary liquidity and market stability for the unexpired assets invested in the stock products, financial institutions may issue old products to dock, but they shall be strictly controlled. Inventory products are within the overall scale, and are compressed and diminished in order to prevent the cliff-breaking effect at the end of the transitional period. Financial institutions shall formulate a rectification plan for the asset management business during the transitional period, specify the schedule of the time, and submit it to the relevant financial supervision and management department for approval and supervision, and submit it to the People's Bank of China at the same time. After the transitional period is over, the asset management products of financial institutions are fully regulated in accordance with this opinion (except when the factor company has not yet been established and fails to meet the requirements for third-party independent trusteeship), and financial institutions may not reissue or continue to violate the assets management of this opinion. product.

30. The asset management business, as a financial business, belongs to the franchise industry and must be incorporated into financial supervision. Non-financial institutions may not issue or sell asset management products, except as otherwise provided for by the State.

Non-financial institutions have violated the above regulations, expanded the scope of investors, lowered investment thresholds, used publicity such as Internet platforms, split sales of investment targets with investment thresholds, overemphasized credit enhancement measures to cover product risks, set up secondary product trading markets, etc. Behaviors, which are cleaned up according to national regulations, constitute illegal fund-raising, illegally absorbing public deposits, and illegally issuing securities, shall be legally investigated for liability. If a non-financial institution illegally carries out an asset management business, it shall be punished according to law; at the same time, if it commits or carries out rigid payment, it shall be given a heavier punishment in accordance with the law.

31. This opinion shall be implemented as of the date of promulgation.

The "financial management department" referred to in this Opinion refers to the People's Bank of China, the State Council’s banking insurance supervision and administration institution, the State Council’s securities regulatory agency and the State Administration of Foreign Exchange. "Issuance" refers to the issuance of subscription invitations to investors of asset management products through public or private means to raise funds. "Sales" refers to investors' promotion of asset management products and the purchase and redemption of products. “Accredited sales” refers to the activities of the asset management products that are legally issued by the promoters and sales cooperatives in the channel of the agency, and are entrusted by the cooperative agency.