CSRC drafts rules on public fund sales fees and seeks feedback

CSRC drafts rules on public fund sales fees and seeks feedback

China's securities regulator, the China Securities Regulatory Commission (CSRC), has drafted new rules on public fund sales fees and is seeking public feedback. This move comes amidst ongoing investigations into the former CSRC chairman, Yi Huiman, who was removed last February [1].

The draft rules aim to address the fees charged by public funds, which are investment vehicles that pool money from multiple investors to invest in securities. The CSRC has proposed that these fees be standardized and capped to ensure transparency and protect investors. The draft rules also suggest that the fees should be reviewed regularly to prevent any potential misuse or undue advantages [2].

The CSRC's move to draft these rules is part of its ongoing efforts to enhance market integrity and investor protection. The regulator has been under scrutiny following the removal of Yi Huiman, who was reportedly being investigated for alleged corruption, including whether his relatives obtained improper benefits during his tenure [1].

The draft rules are currently open for public comment, and the CSRC is encouraging investors, financial professionals, and other stakeholders to provide their feedback. The regulator aims to finalize the rules by the end of this year.

References:
[1] https://m.economictimes.com/news/international/world-news/former-china-securities-regulatory-chief-yi-under-investigation-sources-say/articleshow/123715941.cms