With approval from the China Securities Regulatory Commission, Shenzhen Stock Exchange (SZSE) released the Guideline of Shenzhen Stock Exchange for Structured Fund Business Management (“the Guideline”) on November 25, 2016 for the sake of regulating the adequacy management over structured fund investors and protecting investors’ legitimate rights and interests. The Guideline will be officially implemented from May 1, 2017. It further improves investor adequacy management systems and regulates the work on structured fund split, investor education and risk warning on the basis of summarizing the recent years of experience in structured fund management and operation. It is an important institutional arrangement for implementing the law-based strict comprehensive supervision, paying greater attention to and preventing market risks, and propelling the stable and sound development of the fund market.
In order to secure the Guideline implementation, securities companies in the earlier stage have completed relevant tech system improvement as per the Guideline. Moreover, investors have been reminded through multiple channels including network and telephone of following the arrangement on the Guideline implementation and its influence. In addition, the interested fund management companies have released announcements to remind investors of making early appropriate arrangement according to their situations.
It is worth investors’ noticing that investors who haven’t been granted permissions after the official implementation cannot buy sub-shares of structured fund or split basic shares but still have the options of holding or selling the structure fund shares held. Pursuant to the Guideline, investors who desire to apply for structured fund-related permissions should meet certain conditions, such as “(applicants) should have a daily securities asset average of not less than 300,000 yuan in the 20 trading days prior to permission application” and “(applicants) should sign the Risk Announcement to Structured Fund Investors” in written form at the physical spot of business departments.” Therefore, investors should pay attention to the notices, announcements, text messages, WeChat push and other information released by securities companies or make phone call to them to know about the specific arrangement on permission application. Also, investors should follow the possible changes in permissions on involving in structured fund business after the Guideline implementation to reasonably arrange transactions and prevent investment risks.
