The Zhitong Finance App learned that on September 4, the China Securities Regulatory Commission solicited public comments on the “Measures for the Supervision and Administration of Private Equity Fund Raising (Consultation Draft)”. The “Recruiting Measures” consists of 7 chapters and 45 articles. The main contents include: 1. Clarifying the basic principles of “seller responsibility and buyer responsibility”, clarifying recruitment methods, and refining regulations prohibiting sexual conduct. The second is to improve certification standards such as asset size, income level, and investment experience of qualified investors, and strengthen penetrating regulatory requirements. The third is to clarify the capital raising process, fundraising documents and regulatory requirements, and to compile the proper management and risk disclosure obligations of private equity fund managers and private equity fund sales agencies. Fourth, improve mechanisms to guarantee the safety of funds raised, clarify requirements for special accounts for collection and settlement, supervisory agencies for raising and settlement funds, etc., and strengthen requirements for establishing internal control systems for private equity fund managers. Fifth, clarify supervision, management, and legal responsibilities.
The original text is as follows:
China Securities Regulatory Commission Seeks Public Comments on “Measures for the Supervision and Administration of Private Equity Fund Raising (Draft for Comments)”
In order to thoroughly implement the “Guiding Opinions of the General Office of the State Council on Strengthening Supervision and Risk Prevention and Promoting High-Quality Development of Private Equity Funds”, further strengthening the supervision of private equity fund raising business activities and promoting the high-quality development of the private equity fund industry, the China Securities Regulatory Commission has drafted the “Measures for the Supervision and Administration of Private Equity Fund Raising” (hereinafter referred to as the “Private Equity Regulations”) in accordance with laws and regulations such as the “Securities Investment Fund Law of the People's Republic of China” (hereinafter referred to as the “Private Equity Regulations”), etc. Public comments are publicly solicited.
The qualified investor system is the foundation of the private equity fund supervision system and supervisory management concept. The capital raising stage is the core part of effectively managing the entrance of qualified investors. At the same time, capital raising is a critical stage in private equity fund business activities. It plays an important role in whether private equity funds can continue to regulate operations and whether the legitimate rights and interests of investors can be effectively protected. The “Fund Law” and “Private Equity Regulations” establish the basic principles of private fund-raising from qualified investors, and authorize the China Securities Regulatory Commission to make specific provisions on qualified investor standards and fundraising stage supervision requirements, etc. The enactment of this measure is a specific measure to implement the decisions and arrangements of the Party Central Committee and the State Council and refine laws and regulations. Through further refinement and improvement of the standards for differentiated qualified investors, the relevant responsibilities of private equity fund managers, private equity fund sales agencies, etc. are clarified, and private equity fund raising business activities are comprehensively regulated, and the healthy development of the private equity fund industry is promoted.
The “Recruiting Measures” consists of 7 chapters and 45 articles. The main contents include: 1. Clarifying the basic principles of “seller responsibility and buyer responsibility”, clarifying recruitment methods, and refining regulations prohibiting sexual conduct. The second is to improve certification standards such as asset size, income level, and investment experience of qualified investors, and strengthen penetrating regulatory requirements. The third is to clarify the capital raising process, fundraising documents and regulatory requirements, and to compile the proper management and risk disclosure obligations of private equity fund managers and private equity fund sales agencies. Fourth, improve mechanisms to guarantee the safety of funds raised, clarify requirements for special accounts for collection and settlement, supervisory agencies for raising and settlement funds, etc., and strengthen requirements for establishing internal control systems for private equity fund managers. Fifth, clarify supervision, management, and legal responsibilities.
The “Fundraising Measures” are important rules for strengthening the supervision of the whole process of private equity funds. Their formulation and promotion marks the accelerated establishment and improvement of the private equity fund administrative rules system and the further consolidation of the whole chain supervision system.
The China Securities Regulatory Commission will carefully study the feedback from various parties, make further revisions and improvements, and publish and implement them in accordance with the procedures.
This article was edited by China Securities Regulatory Commission, Zhitong Finance Editor: Chen Wenfang.