To standardize the information disclosure behavior of asset management trust products, wealth management products, and insurance asset management products, and to promote the implementation of unified regulatory standards for similar businesses, the Financial Regulatory Administration has drafted the “Administrative Measures for Information Disclosure of Asset Management Products of Banking and Insurance Institutions (Draft for Public Comment)” (hereinafter referred to as the “Measures”).
Overview of the Measures
The Measures consist of six chapters and 35 articles, systematically regulating the information disclosure behaviors of asset management trust products, wealth management products, and insurance asset management products. They comprehensively cover all links from product fundraising, existence to termination, urging institutions to strictly fulfill their fiduciary obligations and fully safeguarding investors’ right to know and choose.
Key Provisions
Standardizing Disclosure Behavior
The Measures aim to ensure that information disclosure is standardized, transparent, and timely. This includes detailed requirements for the content, format, and timing of disclosures to ensure that investors have access to accurate and comprehensive information.
Unified Regulatory Standards
The Measures promote the implementation of unified regulatory standards for similar businesses, ensuring consistency and comparability across different types of asset management products. This helps to level the playing field and reduce regulatory arbitrage.
Protecting Investors’ Rights: By requiring detailed and timely disclosures, the Measures aim to protect investors’ legitimate rights and interests. This includes the right to know and the right to make informed choices, which are fundamental to investor protection.
Comprehensive Coverage
The Measures cover all stages of the product lifecycle, from fundraising to termination. This ensures that investors have access to information at every critical juncture, enabling them to make informed decisions throughout their investment journey.
Next Steps
The State Financial Regulatory Commission will now seek public opinion on the draft Measures. Based on the feedback received, the commission will revise and improve the document before finalizing and implementing the regulations.
Conclusion
The draft “Administrative Measures for Information Disclosure of Asset Management Products of Banking and Insurance Institutions” represents a significant step towards enhancing transparency and investor protection in the asset management sector. By standardizing disclosure practices and promoting uniform regulatory standards, the Measures aim to create a more transparent and investor-friendly environment. The public consultation process will ensure that the final regulations are well-calibrated to meet the needs of both investors and market participants.
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