China Securities Industry Association revises and issues the "Regulations on the Management of Non-public Real Estate Investment Trust Fund Investors in Public Offering"

On December 31st, China Securities Industry Association revised and released the "Regulations on the Management of Investors in Real Estate Investment Trusts (REITs) Publicly Raised Offline," which will officially be implemented from the date of publication. The main revisions of the rules include: adapting the rule name to be more inclusive, expanding the scope of application from infrastructure real estate investment trusts to commercial real estate investment trusts. Strengthening the management of offline investors, on the basis of maintaining the registration requirements, continuous operation time, and asset size of institutional investors unchanged, new requirements have been added for institutional investors to have research and pricing capabilities, compliance and risk control levels, communication equipment control, and internal accountability and performance incentive constraints. The revised content also includes strengthening the appropriateness management of offline investors, maintaining a connection with the "Regulations on the Management of Investors in the Initial Public Offering of Securities," and specifying that if significant incidents occur to offline investors or the recipients managed by them, the reporting obligations should be fulfilled promptly, achieving normalized and dynamic management of offline investors. Standardizing the behavior of fund managers and financial advisors, specifying that fund managers and financial advisors should fulfill their duties diligently, and conduct checks and monitoring of real estate fund offline inquiries and subscription businesses. Continuously purifying the offline issuance market, adhering to the principle of combining punishment and education, taking corresponding measures against discovered violations by offline investors, and strengthening the deterrence of violators. In addition, the rules also clarify that the Association may implement tiered self-regulation management for offline investors and allocation recipients according to the needs of self-discipline management practices, strengthening reputation constraints, and building a high-quality team of investors in real estate investment trusts. In the next step, the Association will provide guidance and supervision to offline investors, fund managers, and financial advisers through training and interpretation of the rules, strengthening market monitoring, and conducting self-regulatory checks, to ensure the understanding and application of self-regulatory rules and to continue regulating the business of public offering of real estate investment trusts offline. This article is selected from the WeChat public account "China Securities Association Release," edited by GMTEight: Xu Wenqiang.