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new standards for the classification and evaluation of public funds are coming. seniority-based ranking based on scale will become a thing of the past

2024-09-13

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[in the view of industry insiders, the classification evaluation system represents the guidance of the regulatory authorities on the next stage of the business direction of financial institutions, and will further regulate the behavior of public funds. "high-quality development has been the main theme of the public fund industry in recent years. from the perspective of the new system, compliance and risk control are the bottom line of operations, and institutions must also place investors' sense of gain in a more important position." said a fund industry insider in shanghai. ]

[in the revised classification evaluation system, compliance risk control continues to be a pre-evaluation procedure for class a managers, and the bottom line ratio in the evaluation is increased from 10% to 20%.]

class a managers have priority in participating in innovative product (business) pilot programs, while class c managers are not allowed to participate in principle. public fund managers are ushering in new evaluation standards.

yicai learned from the industry that the latest institutional supervision report issued by the regulator recently mentioned that the relevant departments of the china securities regulatory commission have comprehensively revised the classification evaluation system for public fund managers. the revised evaluation system mainly evaluates public fund managers based on multiple indicators such as compliance and risk control, service to investors, and special work evaluation, and puts more emphasis on compliance and risk control, function performance, and investor sense of gain, avoiding "seniority-based ranking" based solely on business scale.

the notice, titled "optimizing the classification evaluation system to better play its guiding function," shows that in the revised classification evaluation system, compliance and risk control will continue to be the pre-evaluation procedure for class a managers, and the bottom line ratio in the evaluation will be increased from 10% to 20%.

in the view of industry insiders, under the regulatory orientation of "supporting the best and limiting the worst", the classification evaluation system will clearly define each "plus point" and "minus point" one by one, making the industry's subsequent actions more targeted, while also encouraging fund managers to further improve their business capabilities and management levels.