Dispatched offices, exchanges, subordinate units, associations and departments of the CSRC:
As an important institutional investor, public funds are playing an increasingly important role in the reform, development and stability of the capital market. In recent years, under the strong leadership of the CPC Central Committee and the State Council and the unified command and coordination of the financial commission of the State Council, China's economic and financial environment has been continuously optimized, the deepening reform of the capital market has been continuously promoted, the public fund industry has shown a good development trend, the scale of the industry has increased rapidly, the product structure has been continuously optimized, the standard level has been steadily improved, the wealth effect has gradually appeared, and the strength of the industry has been significantly enhanced. However, at the same time, there are still some problems in the industry, such as insufficient adaptability of professional capacity, weak cultural construction, unbalanced structure and so on.
Standing in the new development stage, we should focus on the main line of promoting the high-quality development of the public fund industry, further firmly deepen reform, solidly promote regulatory transformation, and accelerate the construction of a new development pattern of the public fund industry. The following opinions are put forward.
I. General requirements
Guided by Xi Jinping the thought of socialism with Chinese characteristics in the new era, closely focusing on the general goal of building a standardized, transparent, open, dynamic and resilient capital market, adhere to the direction of marketization, legalization and internationalization, and accelerate the high-quality development of the public fund industry.
The general principle is to adhere to the interests of investors as the core, effectively improve the ability of the public fund industry to serve the reform and development of the capital market, the wealth management needs of residents, the real economy and national strategy, correctly handle the relationship between scale and quality, development and stability, efficiency and fairness, high growth and sustainability, and effectively improve the development of the industry and the interests of investors.
II. Actively cultivate professional asset management institutions
1. Support differentiated development. Support fund management companies to achieve differentiated development on the basis of optimizing and strengthening the main business of public funds, and promote the formation of an industry ecology of coordinated development and benign competition between comprehensive large-scale wealth management institutions and characteristic professional asset management institutions. Guide the head organization to play a leading role, adhere to long-term ism, strive to do difficult and correct things, and become an industry leader of "respected and convincing". Support fund management companies with prominent public offering main business, stable compliance operation and appropriate professional ability to set up subsidiaries, specializing in public offering REITs, equity investment, fund investment consulting, pension financial services and other businesses, so as to improve their comprehensive wealth management ability. We will study and further optimize the trading mode of fund management companies, shift the outsourcing of back office operations of public funds from pilot to routine, support small and medium-sized fund management companies to reduce costs and increase efficiency, and focus on improving investment and research capabilities. Guide fund management companies that fail to operate to actively apply for cancellation of public fund management qualification or realize market-oriented exit through mergers and acquisitions, so as to promote the construction of an industry ecology of survival of the fittest and orderly advance and retreat.
2. Effectively improve the governance level. Promote fund management companies to further improve the corporate governance mechanism, adhere to the principle of giving priority to the interests of investors, improve the "three boards and one layer" system, strictly perform their respective responsibilities according to law, effectively give full play to the supervision function of independent directors, supervisors and chief inspectors, and strengthen the due diligence of senior executives. It is strictly prohibited for major shareholders and actual controllers to abuse their control power to interfere with the normal operation and management of the company, so as to prevent the absence of shareholders and insider control. We will ensure the entry of equity, consolidate the main responsibility of equity management of fund management companies, prevent the disorderly expansion of capital, and severely crack down on violations such as equity holding, disguised license acquisition and reselling. Comprehensively strengthen the party building of fund management companies, integrate the party's leadership into all links of the governance of state-owned fund management companies, and explore the establishment of a modern asset management institutional governance system with Chinese characteristics.
3. Expand the team of public fund managers. Actively promote the establishment of fund management companies by high-quality financial institutions such as commercial banks, insurance institutions and securities companies according to law. Adjust and optimize the public fund license system, moderately relax the restrictions on the number of public fund licenses under the same entity, and support professional asset management institutions such as securities asset management companies, insurance asset management companies and bank financial management subsidiaries to apply for public fund licenses and engage in public fund management business according to law. Adhere to the supervision guidance of professionalism, integrity and compliance, strengthen the review of the promoter's ethics, professional reputation and professional competence, prudently and orderly approve the establishment of fund management companies initiated by natural persons, and strictly prevent disorderly competition in the industry.
4. Steadily promote high-level opening-up. Support high-quality overseas financial institutions with long-term investment intention in China's capital market to set up fund management companies or expand their shareholding ratio, and encourage the industry to actively learn from overseas advanced asset management experience and beneficial business models. Support qualified fund management companies to "go global", set up overseas subsidiaries according to law, and improve their ability to serve foreign investors and global asset allocation. Continue to promote the expansion of QDII quota and broaden the investment channels of public funds in overseas markets. Steadily and orderly promote the two-way opening of products, continue to promote the mutual recognition business of funds between the mainland and Hong Kong, steadily expand the ETF interworking mechanism, support qualified public funds to participate in the pilot of "cross-border wealth management link" business in Guangdong, Hong Kong and Macao, and promote the inclusion of stock ETFs in the subject of interconnection between the mainland and Hong Kong stock markets.
5. Strengthen the long-term incentive and restraint mechanism. Urge fund managers to establish and improve the long-term assessment mechanism covering core employees such as operation management and fund managers, include compliance risk control level, long-term investment performance of more than three years and actual profits of investors into the scope of performance assessment, and weaken the assessment proportion of scale ranking, short-term performance, income profit and other indicators. Urge fund managers to strictly implement the salary deferral system, establish and improve the bonus follow-up and investment mechanism for core employees such as management and fund managers, implement the bonus recovery and deduction system for those responsible for violations, and prohibit short-term incentive and over incentive behavior. Support fund management companies to explore and implement diversified long-term incentive and restraint mechanisms, and study the use of equity, options, restricted equity, dividend rights and other ways to achieve the consistency between the long-term development of employees and the company and the long-term interests of holders. Actively promote relevant departments to relax the restrictions on employee stock ownership policies of state-owned fund management companies.
III. comprehensively strengthen professional capacity-building
6. Focus on improving the core competence of investment and research. Guide fund managers to build a team, platform and integrated investment and research system, increase the proportion of investment and research personnel, improve the echelon training plan of investment and research personnel, do a good job in the accumulation and inheritance of investment and research ability, and reverse the development mode of over reliance on "star fund managers". Promote fund managers to realize the research coverage of macro, strategy, industry and company in all dimensions, and effectively improve the pricing ability of stock issuance. Guide fund managers to adhere to the concept of long-term investment and value investment, take effective regulatory measures to limit the behaviors of "style drift" and "high turnover rate" to win short-term transaction income, and give full play to the function of "stabilizer" and "ballast" of the capital market. Promote fund managers to consolidate their credit risk research ability, establish and improve the internal rating system of various financial instruments and counterparties, pay attention to the application and transformation of internal rating results, and adhere to investment discipline.
7. Continuously strengthen compliance risk control capability. Urge fund managers to continuously strengthen the construction of internal control over investment and research, standardize the management of securities in and out of the warehouse, strengthen the monitoring, analysis and tracking inspection of fund investment transactions, strictly manage the behavior of investment and research personnel, such as communication tools and equity investment, and effectively play the role of supervision and balance in research, trading, risk control, compliance, supervision and other links. Severely crack down on the "rat warehouse", market manipulation, interest transfer, non fair trading and other illegal acts that damage the interests of fund holders, and establish a "blacklist" system and publicity mechanism for illegal personnel. Promote fund managers to continuously improve the comprehensive risk management system, strengthen liquidity risk management, improve credit risk identification ability, enhance market risk resilience, and firmly adhere to the bottom line of no systemic risk. Supervise fund managers to regularly carry out information system security assessment, stress test and emergency drill, and continuously strengthen data security guarantee, system capacity management and disaster backup capacity construction to ensure the security and stability of information system. Encourage fund managers to strengthen capital accumulation, establish and improve the "living will" and shareholder rescue mechanism, and improve the risk resilience of the institution itself. We will improve the risk response plan for the fund industry at different levels, promote the establishment of a liquidity support mechanism for fund custodians, and improve and optimize the industry risk reserve management system.
8. Actively encourage integrity and innovation of products and businesses. Fund managers are encouraged to take meeting the wealth management needs of residents as the starting point, on the premise of measurable and controllable risks and effective protection of investors, strengthen product and business innovation, effectively improve the ability of public funds to serve the real economy, and resolutely abandon the "pseudo innovation" of rubbing hot spots, grabbing gimmicks and earning norms. Vigorously promote the development of equity funds, support mature index products to become bigger and stronger, accelerate the innovation and development of ETF products, and continuously increase the proportion of equity funds. Orderly expand the investment scope and investment strategy of public funds, and steadily promote the investment of financial derivatives. Steadily develop fixed income products, support the development of personal retail bond products, study and improve the rules of fof, mom and other products, strengthen the development and creation of medium and low volatility products, develop fund products suitable for long-term investment of personal pension, effectively connect the capital needs of different risk preferences, and improve the risk return curve and product pedigree of public funds. We will continue to strengthen the scale and risk control of money market funds, introduce regulations on the supervision of important money market funds, and study and formulate rules for floating net worth money market funds. Study and promote the pilot conversion of ETF collective subscription business to routine, and actively promote the development of innovative products such as public REITs, pension investment products and reasonable profit transfer products by managers.
IV. strive to create a good development ecology of the industry
9. Highlight the cultural concept of planting industry. We will continue to deepen the construction of the industry culture of "compliance, integrity, professionalism and soundness", strengthen the training of employees' professional ethics and ethics, enhance the fund employees' sense of professional identity, mission and honor, and abandon bad cultural phenomena such as eager for quick success and instant benefit and money worship. Promote fund managers to strengthen brand building and reputation management, vigorously carry forward the "craftsman spirit", strive to build a "century old store", adhere to feelings, professionalism and integrity, fulfill their duties, be cautious and diligent, earnestly abandon short-term orientation, scale complex and ranking preference, and resolutely correct the bad atmosphere of fund managers' stardom, product marketing entertainment and basic investment fans. Supervise and urge fund managers to comprehensively strengthen the management of incorruptible employment, focus on organizational leadership, internal control, financial management, incentive and restraint, and earnestly do a good job in the prevention and control of incorruptible risks in key links such as investment research, commission distribution and sales publicity.
10. Strive to improve investors' sense of gain. Guide fund managers and fund sales institutions to firmly establish the marketing concept with the interests of investors as the core, strengthen the appropriateness management of investors, practice "reverse sales", actively expand continuous marketing, innovate the way of investor companionship, and strengthen investor protection. Supervise and urge sales institutions to continuously improve the internal assessment and incentive mechanism, effectively change the phenomenon of "emphasizing the initial offering and neglecting the operation", prohibit short-term incentive behavior, increase incentive arrangements for long-term investment behavior such as fixed investment of funds, and include the sales retention scale and long-term income of investors into the assessment index system. We will develop the fund investment consulting business in an orderly manner, gradually reverse the trend of "focusing on investment and neglecting patronage", improve the "accurate portrait" ability of investors, and strive to play the role of consultants and guidance. Comprehensively strengthen investor education, scientifically build an investment and education evaluation system, and form a new situation of investment and education in the fund industry with clear system, advanced reward and competitive efforts.
11. Continuously strengthen the joint force of the industry. Consolidate the joint fiduciary responsibility of fund custodians, strengthen the performance of duties such as fund property custody, valuation accounting and investment operation supervision, strive to reverse the phenomenon of "heavy contracting, light performance", low rate, low-quality and disorderly competition, and promote the improvement of fund custodians' operation ability and supervision performance. Supervise the fund custodian to strictly control product access and prevent operational risks. Support fund custodians with sufficient capital, stable operation and outstanding ability to carry out public fund operation outsourcing and other service businesses, study and promote fund custodians to realize centralized and professional operation of custody business through organizational structure innovation, and encourage fund custodians to provide value-added services such as liquidity convenience for custody funds based on their own risk pricing ability. Give further play to the leading role of fund evaluation institutions in evaluation, guide investors to pay attention to long-term investment performance, value investment and rational investment, avoid "blindly following the trend and chasing hot spots", urge award evaluation institutions to strive to improve the professionalism, scientificity and authority of award setting, and avoid "self entertainment" in the industry. Actively give play to the role of news media in policy publicity and public opinion guidance, stabilize market expectations, pay attention to and support public opinion supervision, and create a good public opinion atmosphere. Urge industry institutions to improve reputation risk management system and consciously safeguard industry reputation.
12. Increase the proportion of medium and long-term funds. We will guide investors to invest in the industry and provide services to individuals during the life cycle of the fund, and encourage them to make good preparations for the development of the fund system. Actively participate in the design of various pension investment, operation and management policies, promote the introduction of pension market-oriented and long-term investment policies in cooperation with relevant departments, study and establish a multi-level supplementary pension system based on individual accounts, and support more excellent public fund managers to participate in pension management. Continue to promote insurance, financial management, trust and other asset management institutions to increase the actual proportion of equity investment through direct investment, entrusted investment, public funds and other forms, and implement long-term assessment. Promote fund managers to increase investment in human, capital, research and other resources, strengthen multi asset allocation and investment and research capacity-building, and effectively improve the medium and long-term capital service level.
13. Actively practice social responsibility. Promote the industry to become a practitioner of the "big country", and play a greater role in serving the national strategy, promoting innovation driven development and economic transformation and upgrading, and promoting common prosperity. Urge the industry to fulfill its environmental, social and governance responsibilities and realize the unity of economic and social benefits. Actively play the role of professional buyer of public funds, promote the full implementation of the reform of stock issuance registration system, and support the reform and development of the Beijing stock exchange. Promote professional institutional investors such as public funds to actively participate in the governance of listed companies. We should not only "vote with our feet", but also "vote with our hands", so as to help the high-quality development of listed companies. Guide the industry to summarize the ESG investment law, vigorously develop green finance, actively practice the concept of responsible investment, improve the environmental performance of investment activities, and serve the development of green economy. Give full play to the advantages of talents, funds and majors in the industry, and strengthen participation in social public welfare undertakings.
v. continuously improve the efficiency of regulatory transformation
14. Strengthen the construction of industrial infrastructure. Strive to improve the data interaction quality and monitoring and analysis ability of the central data exchange platform of the public fund industry.
Accelerate the construction of a unified query platform for public fund accounts, launch the "fund e account" app, and provide "one-stop" fund account and share information query services for individual investors. Build an industrial direct selling service platform for institutional investors to provide centralized, standardized and automated electronic information flow services for fund investment for institutional investors. We will comprehensively launch the information platform of individual pension investment public funds to provide a strong guarantee for the industry to participate in the third pillar of pension. Steadily expand the business functions of the fund communication platform of Shanghai and Shenzhen Stock Exchange, and provide supplementary channels for OTC investors to invest in public REITs and other exchange funds.
15. Accelerate regulatory transformation. Clarify the boundaries of regulatory responsibilities and adhere to both rule-based and principle based regulation. Continue to optimize the combination of release and management, improve services, fully respect market constraints, timely carry out the integration and clean-up of industrial laws and regulations, strive to build a perfect, concise and clear system of laws and regulations, and effectively mobilize the enthusiasm of all parties in the market. Strengthen supervision during and after the event, adhere to "penetrating supervision and whole chain accountability", comprehensively use economic punishment, qualification punishment and reputation punishment, resolutely implement the "double punishment" mechanism of institutions and individuals, and seriously deal with violations such as false commitments and damage to the rights and interests of investors. Strengthen the two-way communication between regulatory authorities, industry associations and market institutions, timely listen to the voice of the market and actively respond to the demands of the industry. Do a good job in expectation management and guidance, and continuously improve the transparency of supervision through press releases, briefings and other means.
16. Continuously improve the regulatory efficiency. Strengthen the empowerment of scientific and technological supervision, accelerate the construction of supervision system, improve the timeliness and effectiveness of off-site monitoring, and enhance the ability to find problems from the perspective of signs and systematicness. Optimize the classified evaluation system of fund managers, improve the risk portrait and classified supervision mechanism of fund management companies and subsidiaries, further strengthen the supervision guidance of supporting the good and limiting the bad, adhere to different efforts and targeted measures, dynamically allocate supervision resources, implement "close supervision" on key high-risk institutions, and resolutely eliminate serious violations. Further optimize the fund registration mechanism. On the basis of classified registration, comprehensively evaluate the professional investment ability, compliance risk control level and performance of social responsibilities of fund managers, and distinguish the implementation of incentive, Prudential and restrictive measures. Consolidate the regulatory responsibilities of all parties, and all regulatory departments and units should link up and form a joint force to jointly build a regulatory defense line to maintain market stability, effectively prevent and control risks and fully protect the legitimate rights and interests of investors.
China Securities Regulatory Commission
April 26, 2022
relevant points
CSRC: accelerate the high-quality development of the public fund industry and actively cultivate professional asset management institutions
CSRC: actively promote the development of innovative products such as public offering REITs, pension investment products and reasonable profit transfer products of managers
CSRC: guide fund managers to adhere to the concept of long-term investment and value investment, and take effective regulatory measures to limit "style drift", "high turnover rate" and other behaviors to win short-term trading returns
CSRC: guide public fund managers to reverse the development model of over reliance on "star fund managers"
CSRC: urge public fund managers to strengthen the long-term incentive and restraint mechanism, and prohibit short-term incentive and excessive incentive behavior
CSRC: vigorously promote the development of equity funds and introduce important regulations on the supervision of money market funds
CSRC: increase the proportion of medium and long-term funds and support more excellent public fund managers to participate in pension management
CSRC: support high-quality overseas financial institutions to set up fund management companies or expand their shareholding ratio
