AMAC issued new rules on Private Fund Registration and Filing

中国证券投资基金业协会发布私募基金登记备案新规

On 24 February 2023, Asset Management Association of China (“AMAC”), China’s de facto regulator in private funds and asset management industry, officially issued the updated Private Investment Fund Registration and Filing Measures and the corresponding rules (together the "New Filing Measures"), after two-month public consultation. The New Filing Measures have reflected quite a number of more mature thoughts from the Chinese regulators on how to regulate the private fund industry since AMAC’s official empowerment in 2014 to regulate the industry, and will have substantial regulatory impacts on both the private fund managers and their fund products once it becomes effective in May this year.x

2023年2月24日，中国私募基金和资产管理行业的实际监管机构——中国证券投资基金业协会（以下简称“中基协”）在经过两个月的公开征求意见后，正式发布了更新的《私募投资基金登记备案办法》及配套指引（统称“新《备案办法》”）。新《备案办法》反映了自2014年中基协正式被授权对私募基金行业进行监管以来，中国监管机构就如何监管私募基金行业的一些更为成熟的想法。新《备案办法》将于今年5月1日正式生效，预期对私募基金管理人及其基金产品的监管产生重大影响。

Simmons & Simmons China funds team submitted a comment paper in January regarding the draft consultation rules of the New Filing Measures, requesting for more flexibility reserved for foreign invested private managers such as PFM WFOE, QFLP and QDLP/QDIE, in consideration of the latter’s global structures and international practices. We are pleased to see that a number of our comments have been considered and substantially reflected in the final version of the New Filing Measures.

西盟斯中国基金团队于今年1月就新《备案办法》征求意见稿提交了一份意见函，考虑到外商投资私募基金管理人（如外商独资私募证券基金管理人（PFM WFOE）、合格境外有限合伙人（QFLP）和合格境内有限合伙人/合格境内投资企业（QDLP/QDIE））的全球结构和国际惯例，我们请求为其保留更多灵活性。我们很高兴地看到我们的许多意见被采纳，并大幅体现在新《备案办法》的最终版本中。

AMAC has made it clear that there is a grandfather policy when implementing the New Filing Measures. Specifically, existing managers and products are not required to comply with the provisions in the New Filing Measures, unless when any updates are made to the existing structures of the managers or fund products which would trigger the application of the New Filing Measures in part (in case of a change of control on the existing managers, in full), indicating that enhanced (or higher standards) would apply to any subsequent changes taking place in the future.

中基协已明确表示，新《备案办法》的施行实施不溯及既往。具体而言，新规实施后，新《备案办法》实施前既存私募基金管理人和基金产品不需要遵守新《备案办法》的规定，除非私募基金管理人或基金产品的现有结构发生变更，触发了新《备案办法》的部分适用（或在私募基金管理人控制权变更的情况下，全部适用)，表明私募基金管理人或基金产品未来发生的变更将适用强化的（或更高的）标准。

In respect of foreign invested private fund managers, the New Filing Measures particularly matter to PFM WFOE and QDLP/QDIE managers that are carrying out capital raising within the PRC onshore. The New Filing Measures indicate that if an investment vehicle does not carry out capital raising onshore such as certain QFLP fund (a close-end structure dedicated to onshore private equity, private debts and possible infrastructure projects) whose funds are all raised from overseas LPs, it is exempted from the registration and filing requirements set forth under the New Filing Measures. (We are working on an update on the recent QFLP policies which will be forthcoming in the next few weeks.)

就外商投资私募基金管理人而言，新《备案办法》对在中国境内募资的外商独资私募证券基金管理人（PFM WFOE）和和合格境内有限合伙人/合格境内投资企业（QDLP/QDIE）管理人尤为重要。新《备案办法》表明，如果投资工具不进行在岸募资，如某些合格境外有限合伙人（QFLP）基金（一种专门投向在岸私募股权、私募债和可能的基础设施项目的封闭式结构），其资金全部来自境外有限合伙人（LPs），它可以豁免适用新《备案办法》规定的注册和备案要求。 (我们正在编写关于合格境外有限合伙人（QFLP）近期政策的更新，将在未来几周内公布）。
We have summarised below the key changes that may apply to a foreign invested private fund manager:
我们总结了以下可能适用于外商投资私募基金管理人的主要变化：

Fund Managers

基金管理人：

Incorporation and registration – A private fund manager shall be established for the purpose of private fund management business and registered with AMAC within 12 months from the date of completing its industrial and commercial registration, except in cases where the registration is suspended due to policy changes in relevant regulatory authorities.

成立和登记——私募基金管理人应当以开展私募基金管理业务为目的而设立，自市场主体工商登记之日起 12 个月内办理私募基金管理人登记，但因国家有关部门政策变化等情形需要暂缓办理登记的除外。

Paid-in registered capital - New Filing Measures provide that companies and limited partnerships with paid-in registered capital of less than 10 million RMB (or its equivalent in foreign currencies) are not allowed to be registered as fund managers except for those venture capital fund managers that may be subject to other specialised rules.

实缴注册资本—新《备案办法》规定，实缴注册资本低于1000万元人民币（或等值可自由兑换货币）的公司或者合伙企业不得注册为私募基金管理人，但对专门管理创业投资基金的私募基金管理人另有规定的除外。

Business premises – New Filing Measures (together with the associated guidelines issued) provide that fund managers shall have independent and permanent office space and shall not use shared space as business premises. Additionally, if business premises are leased, the lease period shall be more than 1 year (except for those with reasonable grounds).

营业场所——新《备案办法》（以及已发布的配套指引）规定，私募基金管理人应拥有独立、稳定的办公场所，不得使用共享空间等稳定性不足的场地作为营业场所。另外，经营场所系租赁所得的，租赁期应当在 1 年以上，但有合理理由的除外。

Internal control system – New Filing Measures have added new requirements on the firewall and business separation system (segregating its prop funds investment and private fund business), as well as the regime for ensuring the safety of funds and the contingency plan.

内部控制制度——新《备案办法》对防火墙和业务���离机制（隔离私募基金管理人的自有资金投资和私募基金业务），以及保障资金安全的制度和突发事件应急预案提出了新要求。

Alignment of interest - The majority of the domestic private fund managers (excluding those controlled by financial institutions, the government and its authorised agencies) are required to demonstrate that their senior management personnel have held in aggregate a certain percentage of the equity interest of the private equity fund managers directly or indirectly so as to show there is a “skin in the game”. All private fund managers that are controlled by entities supervised by overseas financial regulatory authorities are exempted from such requirements. Furthermore, the New Filing Measures continue to request that each manager shall have a minimum of five full time employees, whilst indicating that there is room for negotiation regarding multiple managers under common control (e.g. PFM WFOE and QDLP/QDIE).

利益一致——新规要求大多数境内私募基金管理人（不包括由金融机构、政府及其授权机构控制的私募基金管理人）证明其高级管理人员直接或间接合计持有私募基金管理人一定比例的股权或财产份额，以显示私募基金管理人与其高级管理人员有“共同利益”。所有受境外金融监管部门监管的机构控制的私募基金管理人可豁免上述规定。此外，新《备案办法》仍要求每个私募基金管理人应至少有5名专职员工，同时指出受共同控制的多个私募基金管理人（如外商独资私募证券基金管理人（PFM WFOE）和合格境内有限合伙人/合格境内投资企业（QDLP/QDIE））有就该条协商的空间。

Eligibility requirements for senior management personnel – New Filing Measures have imposed higher requirements on the management personnel’s track record. In respect of the legal representatives and senior management personnel in charge of the overall management or investment management, a minimum of five-year experience in the direct relevant industry is required. Furthermore, the chief compliance officer is also required to have a minimum of three-year experience in law, accounting, auditing, regulation and/or supervision in the asset management industry.

高级管理人员的资质要求——新《备案办法》对管理人员的工作经验提出了更高的要求。法定代理人、经营管理主要负责人以及负责投资管理的高级管理人员应具有直接相关行业5年以上的工作经验。此外，合规风控负责人还必须具有至少3年法律、会计、审计、监察、稽核、管制和/或资产管理行业监管的工作经验。

Change of control - There shall be no change of control within three years from the date of registration or change of registration of the private fund managers. And no change is allowed in the legal representatives, senior management personnel who are in charge of the overall management or investment management, as well as the chief compliance officer before the completion of fund filing procedures with AMAC for its first private fund. Furthermore, AMAC only allows for a change of control to take place if the private fund manager has maintained an assets under management (“AUM’) of 30 million RMB within 12 months prior to the change.

控制权变更——自私募基金管理人登记或变更登记之日起，3年内不得发生控制权的变更。私募基金管理人在首支私募基金完成备案手续之前，不得更换其法定代表人、经营管理主要负责人以及负责投资管理的高级管理人员和合规风控负责人。此外，中基协只允许私募基金管理人在变更前12个月内保持管理资产规模（“AUM”）不低于3000万元人民币的情况下发生控制权变更。

Fund Documentation

基金文件

Connected party transaction - New Filing Measures stipulate that necessary provisions which require the identification the existence of connected party transactions and the mechanism for determining the consideration of the connected party transactions shall be added into the fund contract.

关联交易——新《备案办法》规定，应在基金合同中增加识别关联交易存在和确定关联交易对价机制的必要条款。

Exit plan - New Filing Measures stipulate that the fund contract shall include an exit plan in the event that the fund manager is unable to perform its duties or when there are risks and other circumstances that prevent a normal exit.

退出计划——新《备案办法》规定，基金合同应当约定私募基金管理人在不能履行职责或存在风险等不能正常退出的情况下的退出方案。

Enhanced risk disclosures - Events such as "overseas investment of the fund property", "the change of the controlling shareholder, actual controller, and general partner of the fund manager taking place before completing the filing procedures with the AMAC” and "other significant investment risks or conflicts of interest risks" need to be disclosed to the investors.

加强风险披露——发生 “基金财产在境外投资”、“私募基金管理人的控股股东、实际控制人、普通合伙人发生变更，尚未在中基协完成变更手续”、“其他重大投资风险或利益冲突风险”等事件，需要向投资者披露。

Minimum AUM – With respect to Private Securities Investment Funds, the amount of money raised in the initial offering shall be no less than 10 million RMB. The same minimum AUM requirement applies to private equity funds with certain breakthroughs offered to venture capital funds (with the caveat that for funds that invest into a single piece of assets, the minimum AUM is increased to 20 million RMB).

最低资产管理规模——私募证券投资基金初始实缴募集资金规模不得低于1000万元人民币。最低资产管理规模要求也适用于私募股权基金，同时允许创业投资基金进行一定突破（需要注意的是，对于投向单一标的的私募基金，最低资产管理规模提高到2000万元人民币）。

Impact on QDLP/QDIE – Where a question possibly remains for the QDLP/QDIE managers dedicated to overseas funds that invest in private debts and infrastructure projects is that the New Filing Measures reinstate that private funds filed with AMAC shall not engage in lending business or direct investment into credit assets. Whilst that was an reiteration of China Securities Regulatory Commission (“CSRC”) rules issued in 2021 regulating the private fund industry, the QDLP/QDIE community is looking forward to having more clarity from the fund regulators on whether it impacts their overseas investments into funds that may engage in private credit or infrastructure projects. The silver lining is added to the blanket restriction which indicates that a private fund might be able to apply private credit strategies in accordance with the rules that have been or would be separately regulated by CSRC or AMAC. We understand that there have been very active discussions between fund regulators, local financial services regulators, industrial associations and QDLP/QDIE manager community. We believe that it is more likely than not that a breakthrough would be made for QDLP/QDIE funds which would then be allowed to invest into a more alternative range of assets overseas in the future.

对合格境内有限合伙人/合格境内投资企业的影响--对于致力于投资私募债和基础设施项目的境外基金的和合格境内有限合伙人/合格境内投资企业（QDLP/QDIE）管理人来说，可能还存在一个问题，即新《备案办法》恢复了在中基协备案的私募基金不得从事信贷业务或直接投资于信贷资产。虽然这是对中国证券监督管理委员会（"中国证监会"）2021年发布的监管私募基金行业的规则的重申，但合格境内有限合伙人/合格境内投资企业（QDLP/QDIE）群体期待基金监管机构更明确地说明这是否会影响他们对可能从事私募债或基础设施项目的基金的境外投资。笼统的限制带来一丝希望，这表明私募基金可能能够根据中国证监会或中基协已经或将要单独监管的规则来应用私募信贷策略。我们理解，基金监管机构、地方金融服务监管机构、行业协会和合格境内有限合伙人/合格境内投资企业（QDLP/QDIE）管理人群体之间一直在积极地讨论。我们相信，合格境内有限合伙人/合格境内投资企业（QDLP/QDIE）基金很有可能取得突破性进展，未来可能允许其投资于更多的境外资产。

Please note that this article is produced by jointly Simmons & Simmons and Shanghai YaoWang Law Offices.

Should you have any questions or require further assistance regarding any of the above, please do not hesitate to contact us.

Melody Yang
Co-Head, Partner
Shanghai YaoWang Law Offices
T +86 21 8013 5022
M +86 135 2105 2486
melody.yang@yaowanglaw.com