CSRC and CIRC issue guidelines for insurers setting up asset management arms
25 June 2013
By Hui Ching-hoo
The China Securities Regulatory Commission (CSRC) and the China Insurance Regulatory Commission (CIRC) jointly announced a pilot measure on Friday (June 21) that advises domestic insurance institutions on how to expand into the fund management business – the measure complements the revised Securities Investment Funds Law that allows insurance firms to enter the market.
The CSRC said on its website that the pilot measure encompasses 21 directives that cover the outlining of the application process, risk control requirements, and the appropriate mechanisms for insurance institutions to communicate with the regulatory body when they come to establish asset management entities.
The revised Securities Investment Funds Law came into force on June 1, and will broaden the major shareholder base of asset management firms from securities brokerages and securities investment advisory entities to include insurance institutions.
The CSRC notes that the move encourages insurance firms to establish their asset management arms in order to facilitate the development of the country’s fund management industry.
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