Chinese private investment funds to conduct 'self-inspection'
[SHANGHAI] Chinese private investment funds will conduct a "self-inspection" of their business practices in compliance with a directive from the State Council, China's cabinet, according to a notice posted on the website of the Asset Management Association of China.
The scope of the inspection will include advertising practices, fundraising from prohibited investor classes, and other prohibited practices. The inspection initiative follows a finding by China's securities regulator that some funds had regularly violated regulations, the Association said.
The notice also requested the funds to strengthen their internal risk management and to boost training in awareness of regulations and societal responsibility.
China's finance sector has been under increased regulatory scrutiny following the dramatic stock crash in 2015 which was blamed in part on poor regulatory oversight.
Regulatory attention on irregular fundraising and advertising procedures by private funds and so-called P2P lending platforms has also intensified in 2016.
REUTERS
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Banking & Finance
Nomura, Mizuho face losses on All Blue fund’s failed trades
Stablecoin Tether steps up monitoring in bid to combat illicit finance
HSBC asked by US$890 billion investor group to set energy goal
Barclays is the latest firm to face anti-ESG wrath in Oklahoma
Barclays prices mortgage-backed notes in deal with GoldenTree
TD risks an earnings hit from US laundering probe, analysts say