The Securities Regulatory Commission recently released the “Regulations on the Supervision of Private Investment Fundraising (Draft for Comment)” and sought public opinions, aiming to strengthen the supervision of the entire private investment fundraising process. The new regulations clarify the criteria for identifying qualified investors: individual investors must have at least two years of investment experience or family financial assets of no less than 5 million yuan; for certain targets, the requirements are increased to at least four years of investment experience and family financial assets of no less than 10 million yuan. It also stipulates that the amount of investment by each private fund investor must be no less than 1 million yuan, with a maximum of 200 investors. The regulations further detail the norms during the fundraising process, strengthen the manager’s obligation to manage appropriateness and disclose risks, clarify requirements for documents such as the prospectus, enhance the arrangement for recording audio and video of natural person investors, and improve the mechanism for ensuring financial security, including regulations on opening special accounts for fundraising and settlement and establishing a supervision and reconciliation mechanism.
The Securities Regulatory Commission recently announced the public solicitation of opinions on the “Regulations on the Supervision and Management of Private Investment Fundraising (Draft for Comment)”, aiming to strengthen the full-process supervision of private investment funds. The regulations clarify the criteria for identifying qualified investors, stipulating that individuals must have at least two years of investment experience or have family financial assets of no less than 5 million yuan. For natural person investors in specific targets, higher requirements are set: at least four years of experience and family financial assets of no less than 10 million yuan. It also requires that the amount invested by individual private fund investors be no less than 1 million yuan, with a maximum of 200 investors. The regulations further detail the norms during the fundraising process, reinforce the manager’s obligation to manage appropriateness and disclose risks, clarify requirements for documents such as the prospectus, and strengthen the recording of natural person investors. In addition, the mechanism for ensuring fund security is improved, stipulating the opening of special accounts for fundraising and settlement and establishing a supervision and reconciliation mechanism. Industry experts believe that this measure will eliminate regulatory arbitrage opportunities and promote the industry to shift from scale-driven to quality-driven development.