Measures for the Sale of Securities Investment Funds
Chapter I General Provisions
Article 1 To regulate the sales activities of securities investment funds, and enhance the healthy
development of the securities investment fund market, these Measures are formulated pursuant to
the Securities Investment Fund Law, the Securities Law and other relevant laws and regulations.
Article 2 For the purpose of these Measures, the term “sale of securities investment funds (funds)”
includes such activities as the advertising and promotion of funds, issuance and sale of fund shares,
and handling of purchase and redemption of fund shares by fund sales agencies.Fund sales
agencies refer to fund managers, as well as other agencies determined by China Securities
Regulatory Commission (CSRC).Agencies related to the sale of funds shall be governed by these
Measures regarding their involvement in the sale of funds. Such agencies include those that
provide payment and settlement services, fund sales settlement capital supervision and registration
services and other sales-related services for fund sales agencies.
Article 3 Fund sales agencies engaged in the sale of funds shall observe laws, regulations and the
CSRC provisions, and may not damage any national interests, public interests or the legitimate
rights and interests of fund investors.
Article 4 Fund sales agencies engaged in the sale of funds shall stick to fund contracts and fund
sales agreements, follow the principles of openness, fairness and justice, be honest and diligent,
scrupulously abide by the professional ethics and code of conducts.
Article 5 Fund sales settlement funds are funds used to settle the transactions of fund investors.
Agencies opening, using or overseeing accounts exclusively used for fund sales settlement may
not count the fund sales settlement funds into their self-owned assets. No entity or individual may
misappropriate the fund sales settlement funds in any form. Where an agency becomes insolvent
or is liquidated, the fund sales settlement funds are not its insolvent or liquidation property.Fund
sales settlement funds refer to funds gathered by fund sales agencies, fund sales payment and
settlement institutions, fund registration institutions and other agencies related to the sale of funds
and allocated between the settlement accounts of fund investors and the custody accounts of fund
assets for the purpose of purchase (subscription), redemption, cash dividends, etc.
Article 6 The CSRC and the local offices thereof shall supervise and regulate the fund sales
activities pursuant to laws, regulations and these Measures.
Article 7 The fund associations shall, according to laws, regulations and self-disciplinary rules,
conduct self-discipline to the fund sales activities and the eligibility of fund salespersons.Fund
sales agencies and other agencies related to the sale of funds shall accede to the fund associations
to accept the self-disciplinary management thereof.
Chapter II Fund Sales Agencies
Article 8 Fund managers may handle the sale of funds they have raised. Commercial banks
(including foreign-funded corporate banks in China, hereinafter the same), securities companies,
securities investment advisory agencies, independent fund sales agencies and other agencies as
specified by the CSRC may apply to the CSRC for a qualification to sell funds.
Article 9 To apply for a fund sales qualification, a commercial bank, securities company, securities
investment advisory agency, independent fund sales agency or any other agency as specified by
the CSRC must:1. Have a sound governance structure and sound internal control and risk
management rules which have been effectively executed;2. Have good financial status and steadily
operate in compliance with regulations;3. Have a business office, safety facilities and other
facilities required by the fund sales business;4. Have safe and efficient technical establishments
for the issuance, purchase and redemption of funds which shall also meet the requirements of the
CSRC for the fund sales information management platforms, have technical systems for the fund
sales business for which interconnection tests have been made with the fund manager and China
Securities Depository and Clearing Corporation, the results of which shall meet the standards
prescribed by the state;5. Have a sound capital clearing flow, and meet the fund sales settlement
funds management requirements of the CSRC;6. Have approaches and systems to assess the risk
tolerance of fund investors and the risk level of fund products;7. Have a sound business flow, code
of ethics for salespersons, emergency response measures and other fund sales management rules,
and conform to the internal control requirements of the CSRC for fund sales agencies;8. Have
internal anti-money laundering control rules that conform to laws and regulations; and9. Meet
other conditions as set forth by the CSRC.
Article 10 To apply for the fund sales qualification, a commercial bank must also meet the
following conditions in addition to those as set forth by Article 9 of these Measures:1. Its capital
adequacy ratio conforms to the relevant provisions of the banking regulatory authority of the State
Council;2. It has a department in charge of the fund sales business;3. It has no record of
administrative or criminal punishment in the last three years; and4. The number of people
qualified for practicing in the fund sector in the department in charge of the fund sales business is
not less than 1/2 of all employees of the department, the managers of the department have
obtained the practicing qualification, are specialists in the fund sales business and have been
engaged in the fund business for at least 2 years or served at any other financial institutions for at
least 5 years; and persons in charge of the fund sales business of the principal branch offices have
all obtained the qualification for practicing in the fund sector.
Article 11 To apply for fund sales qualification, a securities company must also meet the following
conditions in addition to those as set forth by Article 9 of these Measures:1. It has a department in
charge of the fund sales business;2. Its net capital and other financial risk monitoring indicators
conform to the relevant provisions of the CSRC;3. It has no record, during the last 2 years, of
misappropriating clients’ assets or any other conduct that jeopardized clients’ interests;4. It has no
record of being investigated by the regulatory authorities for any violation of laws or regulations
or being ordered to rectify, and has no record of administrative or criminal punishment in the last 3
years;5. It has no record of being investigated by the regulatory authorities for any violation of
laws or regulations or being ordered to rectify; and6. The number of people qualified for
practicing in the fund sector in the department in charge of the fund sales business is not less than
1/2 of all employees of the department, the managers of the department have obtained the
practicing qualification, are specialists in the fund sales business and have been engaged in the
fund business for at least 2 years or served at any other financial institutions for at least 5 years;
and persons in charge of the fund sales business of the principal branch offices have all obtained
the qualification for practicing in the fund sector.
Article 12 To apply for the fund sales qualification, a securities investment consulting company
must also meet the following conditions in addition to those as set forth by Article 9 of these
Measures:1. It has a department in charge of the fund sales business;2. Its registered capital or
financial contribution is not less than 20 million yuan and must be in paid-in monetary capital;3.
Its senior managers have obtained the qualification to practice in the fund sector, are specialists in
the fund sales business, and have been engaged in the fund business for at least 2 years or served
at other financial institutions for at least 5 years;4. It has been continuously providing securities
investment consulting services for at least 3 full accounting years;5. It has not traded securities on
behalf of investors in the last 3 years;6. It has no record of being investigated by the regulatory
authorities for any violation of laws or regulations or being ordered to rectify, and has no record of
administrative or criminal punishment during the last 3 years;7. It is not involved in any material
change, litigation, arbitration or other significant matter that has affected or may affect its normal
functioning; and8. The number of people qualified for practicing in the fund sector in the
department in charge of the fund sales business is not less than 1/2 of all employees of the
department, the managers of the department have obtained the practicing qualification, are
specialists in the fund sales business and have been engaged in the fund business for at least 2
years or served at any other financial institutions for at least 5 years; and persons in charge of the
fund sales business of the principal branch offices have all obtained the qualification for practicing
in the fund sector.
Article 13 Independent fund sales agencies may be engaged exclusively in the sale of funds and
other financial management products. To apply for the fund sales qualification, an independent
fund sales agency must also meet the following conditions in addition to those as set forth by
Article 9 of these Measures:1. It is legally formed as a limited liability company, partnership
enterprise or any other form as recognized by the CSRC;2. Its name, organizational setup and
business scope conform to the relevant provisions;3. Its registered capital or financial contribution
is not less than 20 million yuan and must be in paid-in monetary capital;4. Its shareholders or
partners conform to these Measures;5. It is not involved in any material change, litigation,
arbitration or other significant matter that has affected or may affect its normal functioning;6. Its
senior managers have obtained the qualification for practicing in the fund sector, are specialists in
the fund sales business, and have been engaged in the fund business for at least 2 years or served
at other financial institutions for at least 5 years; and7. At least 10 of its employees have obtained
the qualification for practicing in the fund sector.
Article 14 The shareholders of an independent fund sales agency established in the form of a
limited liability company can be incorporated enterprises or natural persons.To hold shares in an
independent fund sales agency, an incorporated enterprise must:1. Have been continuously
operating for at least 3 full accounting years, have a good financial condition and have been stably
operating in compliance with laws and regulations;2. Have no record of criminal punishment in
the last 3 years;3. Have no record of administrative punishment imposed by the administrative
department of financial regulation, industrial regulation, industry and commerce or taxation during
the last 3 years;4. Have no bad record in self-disciplinary management or at commercial banks in
the last 3 years; and5. Is not under investigation by the regulatory authorities for any violation of
laws or regulations or under rectification.To hold shares in an independent fund sales agency, a
natural person must:1. Have been engaged in securities, fund or other financial business for 10
years or more, have been managing a securities or fund department for 5 years or more, have
served as a senior manager in the securities or fund sector for 3 years or more;2. Have not
received any criminal punishment in the last 3 years;3. Have no record of administrative
punishment imposed by the administrative department of financial regulation, industrial regulation,
industry and commerce or taxation during the last 3 years;4. Have no bad record in
self-disciplinary management or at commercial banks in the last 3 years;5. Have no unpaid due
debt of a relatively large amount; and6. Have no serious record of bad faith in the last 3 years.
Article 15 The partners of an independent fund sales agency established in form of a partnership
enterprise must:1. Have been engaged in securities, fund or other financial business for 10 years or
more, have been managing a securities or fund department for 5 years or more, have served as a
senior manager in the securities or fund sector for 3 years or more;2. Have no record criminal
punishment in the last 3 years;3. Have no record of administrative punishment imposed by the
administrative department of financial regulation, industrial regulation, industry and commerce or
taxation during the last 3 years;4. Have no bad record in self-disciplinary management or at
commercial banks in the last 3 years;5. Have no unpaid due debt of a relatively large amount;
and6. Have no serious record of bad faith in the last 3 years.
Article 16 Institutions applying for the fund sales qualification shall submit application materials
according to the CSRC provisions.After any big change occurs in a matter involved in the
application materials during the application period, the applicant shall submit updated materials to
the CSRC within 5 workdays.
Article 17 The CSRC shall accept fund sales qualification applications, make examinations and
make decisions pursuant to the Administrative License Law.
Article 18 If it is required to register changes with the industry and commerce department, an
applicant shall do so as required after receiving the approval document.Independent fund sales
agencies may not open fund sales settlement accounts until it has registered the changes in the
scope of business with the industry and commerce departments.
Article 19 To form a branch office, an independent fund sales agency must meet the following
conditions:1. It has sound internal control, its operations are stable, and it has a relatively strong
continuous operating ability and is able to effectively control the risk of its branch offices;2. It has
no record of administrative or criminal punishment in the last year;3. It is no record of being
investigated by the regulatory authorities for any violation of laws or regulations or being ordered
to rectify;4. The branch office to be formed has a name, office, business personnel, safety facilities
and other facilities related to the business that conform to the relevant provisions;5. The branch
office to be formed has determined duties and sound management rules;6. The branch office to be
formed has at least 2 persons with the qualification for practicing in the fund sector; and7. Other
conditions as set forth by the CSRC.Branch offices set up before an independent fund sales agency
applies for a fund sales qualification must meet the above-mentioned conditions.
Article 20 To set up a branch office or modify the scope of business, registered capital or financial
contribution, change shareholders or partners, or senior managers, an independent fund sales
agency shall submit a plan to the CSRC for archival purposes beforehand. If it has less than 10
employees with the qualification for practicing in the fund sector during the operation period, an
independent fund sales agency shall report the change to the CSRC within 5 workdays and make
adjustments to reach the personnel requirement within 30 workdays.For independent fund sales
agencies which have handled the filing formalities under the preceding paragraph, the CSRC will
continuously exercise dynamic supervision over them under Articles 13 through16 of these
Measures. For agencies which fail to meet the eligibility requirements for fund sales agencies, the
CSRC shall order them to correct within a certain time limit and, if they fail to do so, revoke their
fund sales qualifications.
Article 21 Fund sales agencies with the qualification to operate the fund sales business shall
submit their basic information to the CSRC for archival purposes, submit the basic information of
their branch offices (outlets) operating the fund sales business to the CBRC offices at the locality
of such offices (outlets) for archival purposes, and update such information on a regular basis.
Article 22 In the merger or split of fund sales agencies, the qualification for operating the fund
sales business shall be managed under the following principles:1. If a new company is formed
after consolidation, the new company shall apply for the fund sales qualification pursuant to these
Measures; before the new company obtains the qualification, the qualification of the merging
party shall be partially terminated; if the new company fails to obtain the qualification within 6
months, the qualification of the merging party shall be terminated;2. In the case of a merger, if the
surviving party does not have the fund sales qualification, it shall apply for such qualification
pursuant to these Measures; before the surviving party obtains the qualification, the fund sales
business of the merged party shall be partially terminated; if the surviving party fails to obtain the
qualification within 6 months, the qualification of the merging party shall be terminated;3. In the
case of a merger, if the merged party does not have the fund sales qualification, the fund sales
agency shall go through the filing formalities under Articles 20 and 21 of these Measures after the
branch offices (outlets) of the merged party meet the regulatory requirements for the fund sales
business, and submit the system integration report to the CSRC for archival purposes according to
the relevant requirements of the fund sales information management platform;4. In the case of a
merger, if both the merging party and the merged party have the fund sales qualification, the
merging party shall submit the system integration report to the CSRC for archival purposes
according to the relevant requirements of the fund sales information management platform; and5.
In the case of a split, the new companies formed after split shall apply for the fund sales
qualification pursuant to these Measures.If the fund sales qualification is partially terminated, the
fund sales agency may handle the account-closing, redemption and custody transfer of fund shares,
but may not handle the account-opening, subscription and purchase of fund shares.
Chapter III Fund Sales Payment and Settlement
Article 23 Fund sales agencies may select commercial banks or payment institutions for their fund
sales payment and settlement transactions. Fund sales payment and settlement institutions shall
guarantee the safe, timely and efficient transfer of fund sales settlement funds.
Article 24 Fund sales agencies shall select commercial banks or payment institutions that meet the
following conditions to handle their fund sales payment and settlement business:1. Having a safe
and efficient information system for the payment and settlement business, having legal intellectual
property rights over the system, and having conducted interconnection tests with partner
institutions and regulatory authorities, the results of which meet the standards prescribed by the
state;2. Having effective risk control rules; and3. Other conditions as set forth by the CSRC.
Article 25 Commercial banks engaged in the fund sales payment and settlement business shall also
have the qualification for operating the fund sales business in addition to conditions as mentioned
in Article 24 of these Measures.Commercial banks that provide payment and settlement services
for fund sales agencies shall charge fees at approved rates for payment and settlement services. To
collect any fees in addition to the payment and settlement service charges, commercial banks shall
conclude a sales agreement with fund sales agencies, provide fund sales services, and fulfill the
fund sales responsibilities.
Article 26 Payment institutions engaged in the fund sales payment and settlement business shall,
in addition to conditions mentioned in Article 24 of these Measures, also obtain a Payment
Business Operation Permit issued by the People’s Bank of China and effectively separate accounts
for the fund sales payment and settlement business and accounts for other businesses.
Article 27 Fund sales agencies, fund sales payment and settlement institutions and fund
registration institutions may open fund sales settlement accounts with commercial banks qualified
for operating the fund sales business or designated for the custody of clients’ transaction
settlement funds.When opening fund sales settlement accounts, fund sales agencies, fund sales
payment and settlement institutions and fund registration institutions shall conclude agreements
with the supervisory organs of fund sales settlement funds in respect of the nature and function of
accounts, specific situations about the use of accounts, supervisory modes, handling of unusual
circumstances of accounts, etc.Fund sales settlement accounts refer to accounts used by fund sales
agencies, fund sales payment and settlement institutions and fund registration institutions
exclusively for the gathering, temporary deposit and transfer of fund sales settlement
funds.Supervisory organs of fund sales settlement funds refer to commercial banks with
supervisory duties over the opening and use of sales accounts by institutions engaged in the fund
sales business and over the flow of transfer of fund sales settlement funds in the circulation
process of fund sales settlement funds, or China Securities Depository and Clearing Company
Limited.
Article 28 The use, modification or cancellation of fund sales settlement accounts shall be reported
to the CSRC and the CSRC office at the locality of the account holder for archival purposes
according to the relevant provisions.
Article 29 Fund sales agencies shall treat the settlement accounts of fund investors as the bank
accounts of their purchase capital.
Chapter IV Publicity and Recommendation Materials of Funds
Article 30 For the purpose of these Measures, “publicity and recommendation materials of funds”
refers to information in hard copy, electronic form or other media which is distributed or issued to
the general public for recommending funds and is generally available for the general public,
including:1. Publicly published materials;2. Flyers, brochures, letters, faxes, fund sales-related
announcements published on media not designated for information disclosure, and other publicity
materials targeted at the general public;3. Posters and outdoor advertisements;4. Materials
published via TV, film, radio and the internet, advertisements made through the links of public
websites, text messages, and other audio or telecommunication materials; and5. Other materials as
specified by the CSRC.
Article 31 A fund manager’s fund publicity and recommendation materials shall be firstly
examined by its senior manager and chief supervisor in charge of the fund sales business, who
shall give a regulation compliance opinion after examination, and the fund manager shall submit
them to the CSRC office at the locality of its principal business operations for archival purposes
within five workdays after they are distributed or issued to the general public.Any other fund sales
agency’s fund publicity and recommendation materials shall be firstly examined by the agency’s
senior managers in charge of fund sales and regulation compliance, who shall give a regulation
compliance opinion, and the agency shall submit them to the CSRC office at the locality of its
principal business operations for archival purposes within five workdays after they are distributed
or issued to the general public.
Article 32 Fund sales agencies that make publicity and recommendation materials of funds shall
be responsible for the contents of such materials and make sure that those distributed and issued to
the general public are consistent with those submitted for archival purposes.
Article 33 The publicity and recommendation materials of funds must be authentic, accurate and
consistent with the fund contract and the prospectus, and may not:1. Have any false records,
misleading statement or gross omission;2. Predict the securities investment achievements of
funds;3. Make any commitment on profits or undertake losses in violation of the relevant
provisions;4. Defame any other fund manager, fund custodian or fund sales agency, or any fund
raised or managed by any other fund manager;5. Exaggerate or unilaterally publicize the fund, or
use expressions in violation of the relevant provisions such as “safe”, “ensure”, “promise”, “free
of risks”, “safeguard”, “high yield”, and “no risk” which may lead the investors to believe there is
no risk or unilaterally emphasize the time limit for centralized sales;6. Publish the
recommendation comments of any entity or individual; or7. Fall under any other circumstances as
prescribed by the CSRC.
Article 34 The publicity and recommendation materials of a fund may include the previous
performance of the fund and other funds managed by the fund manager, except for those whose
fund contract has been effective for less than six months.The following requirements shall be
satisfied to publish previous performance in the publicity and recommendation materials:1. If the
fund contract has been effective for six months up to 1 year, previous performance shall be
counted from the day when the contract becomes effective;2. If the fund contract has been
effective for one year up to 10 years, previous performance refers to the performance in all full
accounting years starting from the year when the contract becomes effective and, if the publicity
and recommendation materials are to be published at the latter half of a year, performance in the
first half of the year;3. If the fund contract has been effective for more than 10 years, previous
performance refers to the performance in the last 10 full accounting years; and4. Any changes with
respect to the investment objective, scope or strategy of the fund contract during the period
counted in for previous performance shall be specially explained.
Article 35 The following provisions shall be observed to publish the previous performance of the
fund or any other fund managed by the same fund manager on the publicity and recommendation
materials:1. Data about previous performance of the fund shall be calculated according to the
relevant laws or regulations or the standards generally recognized in the sector;2. Quoted statistics
and data shall be authentic and accurate, their source shall be specified, and unverified,
non-occurred or simulative data may not be quoted;If it needs to simulate previous performance to
recommend a periodic and rationed investment business, representative indexes of the securities
market of China or any mature security market outside China shall be adopted to simulate on the
effective yields during a sufficiently long period of time in the past, and the complex annual
average yield shall also be noted. In addition, it is also required to explain the source of analog
data, analogue methods and primary computation formulas, and give corresponding risk prompts;3.
The performance of the fund and the management level of the fund manager shall be illustrated
authentically, accurately and reasonably.Data on the previous performance of the fund shall be
reviewed by the fund custodian or be abstracted from the periodic reports of the fund.
Article 36 If the publicity and recommendation materials of a fund includes the previous
performance of the fund, it shall make a special announcement on the fact that the previous
performance of the fund does not mean a prediction of its future performance and that the
performance of any other fund managed by the same fund manager does not provide any
guarantee for the performance of this fund.
Article 37 If the publicity and recommendation materials of a fund compare the performance of
different funds, it shall use comparable data sources, statistical methods and periods and make
sure that the source and statistical method of the relevant data are fair, accurate and relevant.
Article 38 The statistical charts, if any, included in the publicity and recommendation materials of
a fund shall be clear and accurate.
Article 39 If the publicity and recommendation materials of a fund include the rating results of a
fund rating agency, it shall conform to the CSRC norms for the quotation of fund rating results and
display the name of the fund rating agency and the date of rating.
Article 40 Where the publicity and recommendation materials of a fund include the background of
the shareholders of the fund manager, a special announcement shall be made on the facts that the
business of the fund manager and the business of its shareholders are separated and that
shareholders do not directly participate in the investment operation of fund assets.
Article 41 The publicity and recommendation materials of a money market fund shall remind
investors that their investment in the fund is not the same as deposit in banks or financial
institutions of the deposit category and that the fund manager does not guarantee the profitability
or minimum yield of the fund.
Article 42 The publicity and recommendation materials of a segregated fund shall fully disclose
the risk of the segregated fund, explain that investment in a segregated fund is not the same as
deposit in banks or financial institutions of the deposit category, and state that a segregated fund
still has a risk of principal loss under extreme circumstances.If a segregated fund is open for
purchase during the segregation period, it is required to state in the relevant announcements and
the publicity and recommendation materials whether investors’ purchase capital is breakeven
during the segregation period.
Article 43 The publicity and recommendation materials of a fund shall include a clear,
eye-catching risk revelation and warning so as to remind the investors to pay attention to
investment risks, to carefully read the fund contract and the fund prospectus, and to keep posted of
the specific conditions of the fund.If having enough graphic space, the publicity and
recommendation materials shall include a risk revelation with necessary contents that conform to
the relevant provisions.Publicity and recommendation materials made via TV, film, radio, the
internet or the links of public websites shall include a video lasting at least five seconds so as to
remind investors to pay attention to risks and refer to the sales documents of the fund, or a
narration if publicity or recommendation is made via radio.
Article 44 If the publicity and recommendation materials of a fund mention that the fund has been
approved by the CSRC, it is required to make a special announcement that the CSRC approval
does not represent any substantive judgment, recommendation or guarantee of the risk or yield of
the fund.
Chapter V Fund Sales Expenses
Article 45 A fund manager shall stipulate the charging items, conditions and modes of sales
expenses in the fund contract, prospects or announcement, and specify the charging rates and
computation methods in the prospectus or announcement.
Article 46 In the course of operating the fund sales business, fund sales agencies may collect
subscription fees, purchase fees, redemption fees, conversion fees, sales service charges and other
relevant fees from investors according to the fund contract and the prospectus. Fund sales agencies
shall collect fund sales expenses in accordance with the CSRC provisions on fund sales expenses.
Article 47 Fund sales agencies that provide value-added services for fund investors may collect
value-added service charges from fund investors. Value-added services refer to services, in
addition to those statutory or those stipulated in the fund contract or prospectus, provided by fund
sales agencies in the course of selling fund products on the basis of the sales suitability principle
of funds and other relevant products.
Article 48 Fund sales agencies that collect value-added service charges shall meet the following
requirements:1. Sticking to the pricing principles of reasonability, openness and quality in match
with price;2. Displaying the contents of value-added services at all business outlets that provide
such services;3. Making the service agreement in a unified way, specifying the contents, modes,
charging rates and term of value-added services and the mechanism for settling disputes;4. Fund
investors shall be entitled to choose value-added services on their own, and those who choose to
accept value-added services shall sign a service agreement to confirm;5. Value-added service
charges shall be paid separately instead of being subtracted from the purchase (subscription)
capital;6. The party providing value-added services and signing service agreements shall be fund
sales agencies, and no salesperson may collect value-added service charges in private; and7. Other
requirements as set forth by the regulatory authorities.Fund sales agencies that intend to provide
value-added services and then collect value-added service charges from investors shall make the
service agreement in a unified way and submit it to the CSRC for archival purposes.
Article 49 A fund manager and a fund sales agency may agree, in their fund sales agreement, on
setting aside a certain proportion of the holdings of funds sold by the fund sales agency as a
customer maintenance fee which shall be used to pay to the fund sales agency for customer service
charges and other relevant expenses incurred in the sales activities. Fund sales agencies that
collect customer maintenance fees shall conform to the relevant CSRC provisions on fund sales
expenses.
Article 50 A fund manager and a fund sales agency shall agree, in the fund sales agreement or any
supplementary agreement thereof, on the ratio for sharing purchase (subscription) fees,
redemption fees, sales service charges and other sales expenses, confirm the actually obtained
sales expenses as their respective fund sales income on the basis of such ratio, truthfully conduct
accounting and bookkeeping, and pay taxes according to law.
Article 51 Fund associations may set minimum fund sales expenses in the self-disciplinary rules.
Chapter VI Norms for the Sales Business
Article 52 Institutions that operate the fund sales business or any other related business and collect
commission charges from fund sales agencies for fund transactions (including account-opening
services) shall obtain the qualification for operating the fund sales business or be accredited by the
CSRC.Institutions that fail to obtain the qualification for operating the fund sales business or have
not been accredited by the CSRC may not operate the fund sales business or any other related
business. No individual may operate the fund sales business or any other related business in the
name of individuals.
Article 53 Fund sales agencies shall set up, improve and effectively implement rules for the fund
sales business, strengthen inspection and supervision over the regulation compliance operations of
the fund sales business, and make sure that the operation of the fund sales business conforms to
the relevant requirements of the CSRC on the internal control of fund sales agencies.
Article 54 Fund sales agencies shall guarantee the safety and high efficiency of the fund sales
information management platforms and meet the relevant requirements of the CSRC on fund sales
business information management platforms.
Article 55 No one may operate the fund sales business unless he is employed by a fund sales
agency.Persons publicizing and recommending funds, persons operating and maintaining the fund
sales information management platforms or systems and other persons engaged in the fund sales
business shall obtain the qualification for operating the fund sales business. Fund sales agencies
shall set up, improve and effectively execute the continuous training system for fund salespersons,
and strengthen inspection and supervision on the conducts of fund salespersons.
Article 56 Fund sales agencies shall set up sound management rules on the accounts of fund share
holders and capital accounts, procedure for fund share holders to deposit and withdraw capital,
and system for examination and approval upon authorization.
Article 57 Fund sales agencies shall, in the process of selling funds and the relevant products, stick
to the principle of giving priority to investors’ interests, and sell products of different risk degrees
according to the risk tolerance of investors so as to sell appropriate products to appropriate fund
investors.
Article 58 Fund sales agencies shall set up a fund sales suitability management system which shall
at least cover:1. Approaches or methods for making prudential investigations on fund managers;2.
Approaches or methods for setting the risk levels of fund products and making risk evaluations on
fund products;3. Approaches or methods for investigating and evaluating the risk tolerance of fund
investors; and4. Methods for matching fund products with fund investors.
Article 59 The methods adopted by fund sales agencies for assessing the risk of fund products and
the explanations thereon shall be disclosed to fund investors.
Article 60 When selecting fund sales agencies, fund managers shall make prudential investigations
on fund sales agencies; when selecting fund products, fund sales agencies shall make prudential
investigations on fund managers.
Article 61 Fund sales agencies shall strengthen education of investors, lead investors to fully
recognize the risk characteristics of fund products, and protect the legitimate rights and interests of
investors.
Article 62 Fund sales agencies shall, in the course of operating the fund sales business, identify
clients, check the valid identify certificates of clients, register the basic identify information of
clients, make sure that the name of the fund account holder is identical with the name on the
identity certificate, and retain a photocopy of the said valid identity certificate according to the
relevant requirements of the anti-money laundering laws and regulations.A fund sales agency
which commissions any other institution to identify clients in the process of selling fund products
shall, by means of contracts, agreements or any other written documents, clarify the duties of both
parties and the procedure for identifying clients, retaining and exchanging clients’ identify
information and transaction records, and reporting large-sum and suspicious transactions for
anti-money laundering purposes.
Article 63 Fund sales agencies shall set up and improve the file management system, properly
keep the materials submitted by fund share holders for opening accounts and other materials about
the sales business. Clients’ identity materials shall be kept for at least 15 years from the year when
the business connections end, while other materials about the sales business shall be kept for at
least 15 years from the year when the transactions concerned occur.
Article 64 For a fund sales agency that operates the fund sales business, its head office shall
conclude a written sales agreement with its fund managers to clarify the rights and obligations of
both parties. Such an agreement shall at least cover:1. The distribution proportion and mode of
sales expenses;2. How to retain the contact information and other information of fund holders;3.
The responsibility to continuously serve fund holders;4. Partitioning of the liability for fulfilling
the anti-money laundering obligation; and5. Rights and obligations regarding the exchange of
fund sales information and delivery of capital.Without a written sales agreement, no fund sales
agency may sell funds.
Article 65 A fund sales agency shall display the certificate on its qualification for operating the
fund sales business in an eye-catching position of its fund sales outlets, or publish it on its website.
Article 66 Before its fund raising application is approved by the CSRC, a fund sales agency may
not operate the fund sales business, distribute or publish fund publicity and recommendation
materials to the general public, or offer fund shares.
Article 67 Fund sales agencies shall, when selecting relevant institutions for cooperation in the
fund sales business, select those that meet the eligibility requirements of the regulatory
departments, establish sound standards and workflows for selecting and cooperating with them,
fully assess the relevant risks, and clarify the rights and obligations of both parties.
Article 68 Fund registration institutions refer to institutions which handle the transfer of title,
custody and settlement of fund shares. Fund registration institutions may handle the opening and
management of investors’ fund accounts, registration of fund shares, confirmation, clearing and
settlement of the fund sales business, distribution of dividends on a commission basis,
establishment and safekeeping of a roster of fund share holders, etc.
Article 69 Fund registration institutions shall guarantee the safe, accurate, timely and efficient
handling of the transfer of title, custody and settlement of fund shares. Their major duties
include:1. Opening and managing the fund share accounts of investors;2. Registering fund
shares;3. Confirming fund transactions;4. Distributing dividends on a commission basis;5. Setting
up and keeping a roster of fund share holders; and6. Other duties as set forth by the registration
agency agreement.
Article 70 A fund manager, if finding it necessary to replace the old fund registration institution,
submit a replacement plan to the CSRC for archival purposes beforehand.
Article 71 Fund sales agencies and fund registration institutions shall exchange their data through
the technical platforms designated by the CSRC, and complete the backup and storage of fund
registration data at the institutions designated by the CSRC. Data exchange shall conform to the
relevant standards of the CSRC.
Article 72 After an open-end fund contract comes into effect, a fund sales agency shall handle the
purchase and redemption of fund shares according to laws, administrative regulations, the CSRC
provisions, the fund contract and sales agreement, and may not stop offering fund shares or
refusing to accept investors’ purchase or redemption applications without approval. To suspend or
open the purchase or redemption of fund shares, the fund manager shall make an announcement
thereon and explain the reasons and basis in the announcement.
Article 73 No fund sales agency may handle the purchase, redemption or conversion of fund
shares beyond the date or time stipulated in the fund contract.Any investor’s application for
purchasing, redeeming or converting fund shares beyond the date or time stipulated in the fund
contract shall be handled on the next trading day, and the purchase or redemption price shall be the
price on the opening day when the purchase or redemption transaction is processed.
Article 74 Investors that intend to purchase fund shares must pay the full price, except for the
special fund products as specified by the CSRC. A purchase application is valid as long as the
applicant has submitted it according to the relevant provisions and has paid the full price. Whether
a purchase application is successful shall be determined according to the results confirmed by the
fund registration institution.
Article 75 Fund sales agencies shall provide effective channels for fund investors to consult the
fund contract, the prospectus and other fund sales documents.
Article 76 Fund sales agencies shall stick to the fund contract, the prospectus and the fund sales
service agreement when charging sales expenses from investors, and keep accounts true to the
facts. No fund sales agency may charge extra fees from investors beyond the fund contract, the
prospectus and the fund sales service agreement. No fund sales agency may apply discriminatory
rates to different investors, unless it has been stated in the prospectus and announced.
Article 77 Fund sales agencies shall keep the secrets of investors to themselves, and, unless for
statutory causes, may not divulge investors’ information about the trading or holding of fund
shares or other information.
Article 78 Fund sales agencies and other relevant institutions that sell funds via the internet shall
report their internet contents service providers to the competent departments for archival purposes,
guarantee that their information systems meet the CSRC requirements on the information
management platforms for the fund sales business, and report the address of the fund sales
websites to the CSRC for archival purposes before making them available for investors.
Article 79 The provisions on the administration of fund sales agencies’ offering of financial
management products of investment in funds shall be formulated by the CSRC separately.
Article 80 A fund sales agency engaged in the fund sales business may not:1. Lower the charging
rates of funds for the purpose of squeezing out competitors;2. Sell funds through offering lucky
draws, kickbacks, gifts in kind, gifts in the form of insurance or fund units, etc.;3. Sell funds at a
price below cost;4. Offer subscription fee discounts during the period of fund raising (including
subscription by self-service modes such as online subscription and telephone subscription);5.
Promise to transport profits by utilizing fund assets;6. Make advance subscription or purchase
(except for fixed-term or closed-end investment of funds), or change the offering date of funds
without making an announcement as required;7. Misappropriate fund sales settlement funds;8.
Commit any act described in Article 33 of these Measures; or9. Commit any other act prohibited
by the CSRC.
Chapter VII Supervision, Administration and Legal Responsibility
Article 81 A fund manager shall, within 7 days after concluding a sales agreement with a fund
sales agency, file the agreement with the CSRC office at the locality of its principal business
operations.
Article 82 Fund sales agencies shall set up a leaving-office audit or examination system for the
relevant personnel. An audit shall be made according to the relevant provisions of the CSRC when
the board chairman or general manager of an independent fund sales agency leaves office or the
managing partner leaves the agency. An examination shall be made according to the relevant
provisions of the CSRC when any other senior manager of an independent fund sales agency, a
securities investment consulting agency’s senior manager in charge of the fund sales business, or
any other fund sales agency’s department principal in charge of the fund sales business leaves
office.
Article 83 Those persons of fund sales agencies in charge of the supervision and inspection of the
fund sales business shall check the compliance of the fund sales business with laws and
regulations, make a supervision and inspection report for the last year within one quarter upon the
end of the year, and put it into files for future reference.
Article 84 Fund sales agencies shall fulfill the information filing obligations according to the
requirements of the CSRC. The CSRC and its local offices shall make regular or irregular
inspections on the fund sales activities of fund sales agencies, and fund sales agencies shall be
cooperative.
Article 85 Where a fund sales agency violates any of these Measures, the CSRC or the local office
thereof may order it to correct and suspend the relevant business. For the directly liable person in
charge and other directly liable persons, it may hold regulatory talks, issue a warning letter,
suspend them from performing duties, determine them as inappropriate to assume the relevant
positions, or take other administrative regulatory measures.
Article 86 Where a commercial bank, securities company, securities investment consulting
institution, independent fund sales agency or any other institution as prescribed by the CSRC
conceals the relevant information or provides false materials so as to get the qualification to
operate the fund sales business, the CSRC shall reject its application; if the application has been
accepted, it shall disapprove it and give a warning to the applicant.
Article 87 Any entity or individual that operates the fund sales business without the qualification
for operating the business shall be ordered to correct, be given a warning and fined; the directly
liable person in charge and other directly liable persons shall be given a warning and fined.
Article 88 Except for fund sales agencies and the relevant agencies which have been certified by
the CSRC, a fund sales agency which operates the fund sales business in cooperation with any
institution or individual without the qualification for operating the fund sales business shall be
ordered to correct, be given a warning and fined; the directly liable person in charge and other
directly liable persons shall be given a warning and fined.
Article 89 Under any of the following circumstances, a fund sales agency shall be ordered to
correct, be given a warning and/or fined; the directly liable person in charge and other directly
liable persons shall be given a warning and/or fined:1. Failing to open accounts for fund sales
according to Article 27 of these Measures;2. Failing to use fund publicity and recommendation
materials according to Article 32 of these Measures;3. Permitting persons who are not hired by
itself to sell funds or persons not qualified for operating the fund sales business to publicize and
recommend funds as in violation of Article 55 of these Measures;4. Failing to conclude written
sales agreements according to Article 64 of these Measures;5. Distributing or publishing fund
publicity and recommendation materials to the general public without approval as in violation of
Article 66 of these Measures;6. Stopping selling fund shares or refusing investors’ subscription or
redemption requests without approval as in violation of Article 72 of these Measures;7.
Determining the subscription and redemption prices of funds as in violation of Article 73 of these
Measures;8. Failing to charge sales fees, calculate them and keep accounts thereof according to
Article 76 of these Measures;9. Failing to keep secrets of investors to itself according to Article 77
of these Measures;10. Committing any forbidden act as mentioned in Article 80 of these
Measures;11. Failing to make self-inspections and supervisory reports according to Article 83 of
these Measures; or12. Failing to fulfill the information filing obligation or providing assistance for
the supervision and inspection activities of the CSRC and the local office thereof according to
Article 84 of these Measures.A fund sales agency which violates the preceding paragraph shall be
ordered to suspend or terminate its fund sales business if the circumstances are serious.
Article 90 Under any of the following circumstances, a fund sales agency’s qualification for
operating the fund sales business shall be terminated:1. Misappropriating fund sales settlement
funds as in violation of Item 7, Article 80 of these Measures; or2. Failing to operate the fund sales
business within one year after obtaining the qualification for operating the fund sales business.
Article 91 A fund sales agency which has been ordered to suspend its fund sales business may not,
during the period of suspension:1. Sign new sales agreements;2. Publicize and recommend funds;3.
Offer fund shares; or4. Handle the subscription of fund shares.A fund sales agency which has been
ordered to terminate its fund sales business shall stop its fund sales activities.Where a fund sales
agency is ordered to suspend or terminate its fund sales business, the fund managers concerned
shall provide assistance for an intermediary agency designated by the CSRC in properly handling
the subscription, redemption and custody transfer of the fund shares of the relevant investors, and
may claim losses against the sales agency according to the relevant agreements.
Article 92 Under any of the following circumstances, a fund sales payment and settlement
institution shall be ordered to suspend or terminate its fund sales payment and settlement
business:1. Misappropriating fund sales settlement funds in violation of Article 5 of these
Measures; or2. Committing any gross violation of laws or regulations.After the fund sales
payment and settlement institution is ordered to suspend or terminate its fund sales payment and
settlement business, the fund sales agency and the regulatory authority concerned shall provide
assistance for an intermediary agency designated by the CSRC to properly handle the subscription,
redemption and custody transfer of the fund shares of the relevant investors, and may recover
losses according to the relevant agreements.
Chapter VIII Supplementary Provisions
Article 93 These Measures shall come into force on October 1, 2011. The Measures for the Sale of
Securities Investment Funds (Order No.20 of the CSRC) issued on June 25, 2004, shall be
abolished simultaneously.