Proposed new funds regulations will raise compliance standards in China, says lawyer

Proposed new Chinese regulations allowing a wider range of companies to manage funds will require higher compliance standards and more resources to be allocated internally to compliance, said a Beijing lawyer. In a recent regulatory consultation, China’s securities regulator said entities such as securities companies, insurance fund management companies and private securities fund management institutions would be allowed to develop and manage mutual funds that solicit investment from the public.

TieCheng Yang, a partner at Clifford Chance in Beijing, told Compliance Complete that the move would impose further compliance requirements on the companies affected.

"From a compliance perspective, the newly-permitted asset managers, including private fund managers, securities companies and insurance fund management companies, shall be subject to additional compliance requirements under the new rules and other laws, such as the amended Securities Investment Funds Law and regulations applicable to the management of publicly-raised funds," said Yang.

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