Wednesday September 14 2016

News Source: Global Exchanges

Focus: Trading Rules

Type: General




Shenzhen Stock Exchange (‘SZSE’) has announced that in order to regulate the eligibility management of investors in the structured fund market and to protect investors’ legal rights and interests, Shenzhen Stock Exchange has published for consultation the Guidelines of SZSE for Structured Fund Business Management (Exposure Draft).

The Guidelines clearly define the eligibility arrangement for investors in the structured fund secondary market, such as those relating to requirements for investors to sign the Risk Exposure Statement for Investment in Structured Fund, and risk warning arrangement for fund managers and securities companies.

The Guidelines mainly includes the following aspects:

  • firstly, it improves the investors eligibility system and strengthens investors access management and risk exposure for investors;
  • Secondly, it strengthens the risk warning measures and enhances the pertinence and effectiveness of risk warning for investors.
  • Thirdly, it improves the investor education system and promotes fund managers and members to perform the responsibilities for investor education.
  • Fourthly, it clearly defines the investors’ responsibilities and obligations to enhance their risk awareness. It requires investors to follow the principle of ‘total risk born by the buyer’, cooperate with members to provide related proof materials for eligibility management of investors and undertake the responsibility for the accuracy, authenticity and legitimacy.

Additionally, the Guidelines define the procedures for structured fund split business to facilitate investors to accurately understand the split mechanism for structured funds.

Meanwhile, in order to facilitate all market participators to better understand the Guidelines, SZSE has simultaneously drafted and promulgated a relevant Q&A.

The consultation will close on 9th October 2016.

Click on the link above for further details