In order to implement the "Guiding Opinions on Regulating the Asset Management Business of Financial Institutions" (hereinafter referred to as the “New Asset Management Regulations”) and standardize the development of trust companies’ funds and trust businesses, the China Banking and Insurance Regulatory Commission drafted the "Interim Measures for the Management of Trust Companies’ Funds and Trusts (Draft for Comment)" ( Hereinafter referred to as the "Measures"). The heads of relevant departments of the China Banking and Insurance Regulatory Commission answered reporters' questions on related issues.
1. What is the background for the formulation and promulgation of the "Measures" ?
In recent years, trust companies trust business developed rapidly, as of the end of 2019, the country's 68 trust companies manage trust assets total 21.6 trillion yuan, of which the management of trust fund assets Total 1 7.94 Wan Yiyuan . Fund trusts are asset management products based on trust relationships, and they have long played a role of pooling social funds into the real economy in a market-oriented way in the national economic cycle. In recent years, due to changes in the internal and external environments, fund trusts have emerged to facilitate regulatory arbitrage by other financial institutions, improper due diligence management has caused compensation pressure, violations of multiple levels of nesting, and regulatory rules for similar asset management businesses are different. Therefore, in order to complement the shortcomings of the system, the China Banking and Insurance Regulatory Commission has studied and drafted the "Measures" in accordance with the requirements of the new asset management regulations to promote the return of fund trusts to the original source of private equity asset management products of "sellers responsible and buyers responsible", and direct financing is developed. The characteristic fund trust promotes the protection of investors' rights and interests, and promotes the unified and orderly competition of the asset management market supervision standards .
2. What are the general principles formulated in the "Measures"?
The formulation of the "Measures" mainly followed the following principles: First, adhere to the positioning of private equity. Capital trust is a private equity management business at the buyer's own expense. Any institution or individual participating in any fund trust must identify, manage and bear investment risks in accordance with the law. The trust company shall ensure that the fund trust risk level matches the investor's risk tolerance level and break the rigid payment. The second is to focus on new regulations for asset management . Taking strengthening product supervision as the starting point, clarify the operating rules, internal control requirements and supervision arrangements of the fund trust business, and promote the supervision of fund trust in place. The third is to strictly adhere to the risk bottom line. Trust companies are required to strengthen capital trust risk management, limit leverage ratios and nesting levels, achieve risk matching and maturity matching, and prevent improper transfer of risks to trust companies or spillover to the financial market. The fourth is to promote fair competition. Streamline the institutional system, unify regulatory rules, promote the matching of fund trust systems, and create an institutional environment for fair competition.
3. What is the overall structure of the Measures?
The "Methods" consist of 5 chapters and 30 articles. Chapter One "General Provisions" mainly clarifies the definition and management principles of fund trust business. Chapter Two "Business Management" mainly clarifies the trust company's fiduciary duties and operating rules. Chapter 3 "Internal Control and Risk Management" mainly clarifies the internal management requirements of trust companies. Chapter 4 "Supervision and Management" mainly clarifies the relevant regulatory arrangements for fund trusts. Chapter 5 "Supplementary Provisions" clarifies the meaning of related terms.
4. How does the "Measures" define fund trust business?
The "Measures" position the fund trust business as an asset management business based on the legal relationship of trusts . It has the following characteristics: First, it is initiated by a trust company and focuses on maintaining and increasing the value of trust property as the main trust service content. The second is to conduct investment management on the property delivered by investors. For the establishment of a property rights trust with non-cash properties, if it raises funds from investors through the transfer of beneficiary rights, it is also a capital trust. The third is that investors bear their own investment risks and obtain gains or bear losses . The fourth is that for trust business with fiduciary services as the main service content , regardless of whether the trust property is in the form of funds, it will no longer be included in fund trusts, including family trusts, asset securitization trusts, enterprise annuity trusts, charitable trusts and other regulatory approvals Service trust.
5. How does the Measures strengthen investor suitability management?
One is to adhere to the management of qualified investors. Trust companies must perform procedures for determining qualified investors in the links of fund trust promotion, sales and beneficiary rights transfer . The second is to adhere to the principle of private equity. Fund trusts can only be sold by trust companies themselves or commissioned by banks, insurance, securities, funds, and other agencies recognized by the China Banking and Insurance Regulatory Commission , and can only be sold through business premises or their own electronic channels. The third is to adhere to risk matching. The trust company is required to reasonably determine the risk level of each fund trust, evaluate the risk tolerance level of each individual investor, and sell fund trusts that match the risk tolerance level to investors .
6. How does the "Measures" strengthen the management of fund trust deadlines?
First, the trust company should establish, manage, establish accounts, account, and liquidate each fund separately, and must not develop or participate in fund pool business with rolling issuance, collective operation, or separate pricing. Second , the liquidity of the assets invested by the open fund trust should match the redemption needs of investors. The third is the closed-end fund trust period shall not be less than 90 days , and the expiration date of the invested non-standard assets shall not be later than the closed-end fund trust expiry date.
7. How does the "Measures" strengthen the management of non-standard debt assets of fund trust investments?
One is to limit the proportion of investment in non-standard debt assets. It is clarified that the total amount invested by all collective fund trusts in non-standard debt assets shall not exceed 50% of the total paid-in trust of all collective fund trusts at any point in time . The second is to limit the concentration of non-standard claims. The total amount of non-standard debt assets invested by all collective fund trusts in the same financier and its related parties shall not exceed 30% of the trust company’s net assets . The third is to limit the maturity mismatch . The capital trust that requires investment in non-standard debt assets must be closed-end, and the termination date of non-standard debt assets shall not be later than the maturity date of the capital trust. The fourth is to restrict the types of non-standard debt assets. Except for the standardized debt assets traded in the trading market approved by the State Council, all other debt assets are non-standard debt. Clearly Capital Trust shall not invest in commercial bank credit assets, may not be cast to the restricted industries.
8. What are the provisions of the Measures in strengthening penetrating supervision?
One is to penetrate upward to identify the qualifications of investors . Where a fund trust accepts participation of other asset management products, it shall identify the actual investors and the ultimate source of funds of the asset management products. The second is to penetrate downward to identify the underlying assets. For fund trusts that invest in other asset management products, the trust company shall identify the underlying assets in accordance with the principle of penetration. The third is not to calculate the number of investors participating in other asset management products .
9. What are the arrangements for the pre-reporting of capital trusts in the Measures?
The "Measures" treat fund trusts involving related transactions differently from ordinary fund trusts, and treat fund trusts involving different related transactions differently, and no longer require all trust products to be reported in advance. First, if a trust company uses trust funds directly or indirectly to provide financing to the company and its related parties, or invest in securities issued by the company and its related parties, or other assets held by it, it shall report to the banking supervision and administration ten working days in advance. Agency report. Second, if a trust company and its related parties transfer the beneficiary rights of the fund trust managed by the trust company, the trust company shall report to the banking regulatory agency one by one ten working days in advance. Third, when a trust company conducts transactions with its inherent property and capital trust property, it shall report to the banking regulatory agency one by one ten working days in advance.
10. What are the arrangements for the transition period in the Measures?
The transition period requirements of the Measures are consistent with the provisions of the new asset management regulations on transition period. If the China Banking Regulatory Commission has other provisions on the specific arrangements for the transition period, those provisions shall prevail. For institutions with greater rectification pressure, in accordance with the spirit of the supplementary notice of the new asset management regulations, it is clear that for the stock assets that are difficult to dispose of after the transition period due to special reasons, the relevant institutions shall submit applications and promises, and adopt appropriate arrangements after the approval of the regulatory authorities , Properly handle it, and maintain the sustainable and healthy development of the fund trust business.
Reprinted source: General Office