China Securities Regulatory Commission issues "Regulations on Supervision and Management of Private Equity Fund Information Disclosure"

On February 27, the China Securities Regulatory Commission issued the "Regulations on the Supervision and Management of Information Disclosure of Private Equity Investment Funds." The "Regulations on the Information Disclosure of Private Equity Funds" consists of seven chapters and forty-four articles, with main contents including: 1. General provisions: specifying the principles for private equity fund managers, custodians, and sales agencies entrusted by private equity fund managers to disclose information to investors. 2. Basic requirements for information disclosure: specifying that private equity fund managers must disclose private equity fund information to investors in accordance with the information disclosure content, channels, methods, and frequency stipulated in the fund contract. Also clarifying voluntary information disclosure requirements for private equity fund managers. 3. Reports: specifying the types and specific contents of regular reports, interim reports, and liquidation reports for private equity securities investment funds and private equity equity investment funds. 4. Management of information disclosure affairs: requiring private equity fund managers and custodians to establish sound information disclosure management systems. Also specifying the obligation for shareholders, partners, and actual controllers of private equity fund managers to disclose information, as well as strengthening requirements for managing undisclosed information and saving records. 5. Supervision and legal responsibilities: stipulating that the China Securities Regulatory Commission and its branches shall supervise private equity fund managers, custodians, sales agencies, and other service providers in the private equity fund industry, along with their employees engaging in information disclosure activities and related services. They may take administrative supervision measures such as ordering corrections, regulatory discussions, and issuing warning letters, and impose administrative penalties for relevant violations in accordance with the "Regulations on Private Equity Funds." The next step is for the China Securities Regulatory Commission to organize the implementation of the "Regulations on the Information Disclosure of Private Equity Funds," strengthen the supervision of information disclosure practices, urge market participants to fulfill their responsibilities, and promote the standardized and healthy development of the private equity fund industry. This article was excerpted from the official website of the China Securities Regulatory Commission, and edited by GMTEight.