Global Trustee and Fiduciary Services News and Views Issue 50

Prime, Futures and Securities Services | Financial Services Regulation 98 This article aims to provide guidance on the New Asset Management Rules 2 and its consultation paper on the corresponding detailed rules 3 , and concisely outline its impact on mainstream asset management businesses in China. 1. Overall impacts: unifying business rules and avoiding regulatory arbitrage Nowadays, according to the fund-raising method, the asset management business BRIEFING AND COMMENTARY ON CHINA’S “GUIDING OPINIONS ON REGULATING THE ASSET MANAGEMENT BUSINESS OF FINANCIAL INSTITUTIONS” Since the promulgation and implementation of China’s “Guiding Opinions on Regulating the Asset Management Business of Financial Institutions” (New Asset Management Rules) on 27 April 2018, the China Banking and Insurance Regulatory Commission (the CBIRC), and the China Securities Regulatory Commission (CSRC) have respectively initiated public consultations 1 on detailed rules on asset management businesses of various types of financial institutions. Regulatory authority Type of financial institutions Asset management business Fund raising method The CBIRC Commercial bank Publicly raised wealth management product Public placement Privately raised wealth management product Private placement Trust company Trust Insurance asset management company Insurance asset management product The CSRC Securities company Privately raised asset management scheme Futures company Mutual fund company Publicly raised securities investment fund (i.e. retail fund) Public placement Fund Manager of Privately Raised Fund (Non-financial Institution) Privately Raised Fund Private placement in China can be categorised into public placement and private placement. The nature of the two types of asset management businesses is entrusted. But, because of the separation of supervision based on different financial industries, a more common way of categorisation is based on the industry the manager belongs to.