The SFC Again Stated: Stick To The "Three Bottom Line" To Combat Rat Farm

In December 2nd, Yao Gang, vice chairman of the China Securities Regulatory Commission, stressed that the SFC's attitude towards the "rat farm" and other illegal activities is clear, and no organization or individual can violate the three bottom lines of rat trading, non fair trade and various forms of interest pmission.

Yao Gang made the above statement at the Ninth International Forum on China Securities Investment Fund held in Shenzhen.

This is Shang Fulin, chairman of the securities and Futures Commission, when he proposed the thirty-second fund industry joint meeting last year, and the CSRC put forward this principle again in the formal occasion.

At the same time, the "eight character policy" proposed by Yao Gang is also a cause for concern.

Yao Gang pointed out that compliance, professionalism and integrity are the foundation of the fund industry. If the fund companies can not work hard in the standardized operation and honest management, the protection of the holders' interests is empty talk. The credit of the company and even the whole industry will be seriously damaged, and the development of the industry will not be mentioned at all.

Therefore, the SFC's attitude towards the "rat farm" and other illegal activities is clear, and it is found that it is unshakable to stick to the "three bottom line" together.

At the meeting, Yao Gang also broke the meaning of the "eight character policy", that is, "deregulation" means more competition in the market and further lowering of the threshold. Then, the order of normal competition and the maintenance of market interests and investors' interests must be protected.

Therefore, while deregulation, we must strengthen supervision. "

This is also a description of the changes in the fund industry over the past two years. On the one hand, we must severely crack down on rat farm and interest pmission, while the other side will constantly release the threshold of special account and innovative products.

Yao Gang also admitted that there are some problems in the fund industry at present, including the problems existing in the internal governance of fund companies, such as imperfect protection mechanism for holders' interests, short term actions of shareholders and senior executives, etc. in the aspect of compliance and internal control, there are still some problems in individual companies, such as rat trading, illegal investment and bad wind control.

Regarding the problems exposed, Yao Gang pointed out that the regulatory bodies have the responsibility to push forward, further improve corporate governance, and strive to explore and establish incentive and restraint mechanisms that are compatible with the characteristics of the fund industry; seriously study the issue of joint stock and partnership enterprises as fund managers; study the employee stock ownership system, explore long-term incentive and restraint mechanisms, and provide impetus and vitality for the long-term and stable development of the industry; and promote the establishment of a fund management company governance that integrates the interests of the holders, the interests of employees and the interests of shareholders, and takes the priority of holders' interests as the fundamental starting point, so as to achieve mutual checks and balances in power, encourage effective constraints, and focus on long-term development and the interests of owners.

Yao Gang also revealed the main trend of the regulatory authorities in the future, namely, promoting the revision of the fund law, exploring the incentive mechanism of the fund company, promoting the reform of the sales domain, and promoting the four aspects of market-oriented reform.

Among them, promoting the revision of the fund law will mean that private equity funds may also be included in the supervision of the SFC in the future.