The reporter learned that the China Securities Association plans to revise the “Regulations on the Administration of Alternative Investment Subsidiaries of Securities Companies” and the “Regulations on the Administration of Private Equity Fund Subsidiaries of Securities Companies”, and recently solicited opinions from the industry. According to the revisions, brokerage firms should carefully establish two types of subsidiaries. According to the principle of “mature one, establish one”, the time interval between establishing a new private equity subsidiary and an alternative subsidiary for the first time should not be less than 1 year. On the premise that the requirements are met, brokerage firms can establish two or more private equity fund subsidiaries. According to the reporter's statistics, up to now, brokerage firms have 84 alternative investment subsidiaries and 79 private equity fund subsidiaries. The China Securities Association said that the purpose of this revision is to promote the work goals of brokers' return to the main business, streamline organizational structures, rationalize business systems, strengthen internal control, and mitigate risks in an orderly manner. In particular, further solidify the risk prevention system, continue to prevent “peripheral loss of control,” and promote the steady functioning of investment businesses to serve the real economy and create a more friendly institutional environment.

Zhitongcaijing · 03/25 10:50
The reporter learned that the China Securities Association plans to revise the “Regulations on the Administration of Alternative Investment Subsidiaries of Securities Companies” and the “Regulations on the Administration of Private Equity Fund Subsidiaries of Securities Companies”, and recently solicited opinions from the industry. According to the revisions, brokerage firms should carefully establish two types of subsidiaries. According to the principle of “mature one, establish one”, the time interval between establishing a new private equity subsidiary and an alternative subsidiary for the first time should not be less than 1 year. On the premise that the requirements are met, brokerage firms can establish two or more private equity fund subsidiaries. According to the reporter's statistics, up to now, brokerage firms have 84 alternative investment subsidiaries and 79 private equity fund subsidiaries. The China Securities Association said that the purpose of this revision is to promote the work goals of brokers' return to the main business, streamline organizational structures, rationalize business systems, strengthen internal control, and mitigate risks in an orderly manner. In particular, further solidify the risk prevention system, continue to prevent “peripheral loss of control,” and promote the steady functioning of investment businesses to serve the real economy and create a more friendly institutional environment.