CSRC to open up securities and funds investment advisory industry

To proactively address the issues and to resume grants for market entry driven by the continuous development and demands of the market, on 17 April 2020, CSRC issued the long-awaited consultation draft of the Measures for Administration of Securities and Funds Investment Advisory Services[《证券基 金投资咨询业务管理办法(征求意见稿)》, the “Consultation Draft”].

To proactively address the issues and to resume grants for market entry driven by the continuous development and demands of the market, on 17 April 2020, China Securities Regulatory Commission (CSRC) issued the long-awaited consultation draft of the Measures for Administration of Securities and Funds Investment Advisory Services[《证券基 金投资咨询业务管理办法(征求意见稿)》, the “Consultation Draft”].

Securities investment advisory services are regulated in China as an important part of capital market intermediary services, with the key rules being the Interim Measures for Administration of Securities and Futures Investment Advisory Services, promulgated by the Securities Commission of the State Council (the regulatory predecessor to CSRC in 1997 (《证券、期 货投资咨询管理暂行办法》, the “1997 Measures”).

Under the 1997 Measures, securities/futures investment consulting is broadly defined as the provision of analysis, predictions or recommendations for investments in securities or futures and such service is subject to a prior license from CSRC.

As of today, CSRC has granted 84 investment advisory licenses in total but has suspended issuing such license since 20141 , due to relevant issues in the investment advisory industry, such as unsustainable business models and lack of sufficient internal control, among other reasons.

Source: http://www.csrc.gov.cn/pub/zjhpublic/zjh/202004/t20200417_373987.htm

Disclaimer: This is an article created by Michael Liang for Chinasdg.org. You can find the original article here: https://chinasdg.org/2020/05/10/csrc-to-open-up-securities-and-funds-investment-advisory-industry/.

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