The heads of relevant departments and bureaus of the State Financial Supervision and Administration answered questions from reporters on the “Administrative Measures on Asset Management Trusts”. What are the main requirements of the “Measures” with regard to the sale of asset management trusts? Answer: When carrying out asset management trust business, trust companies should fully explain the risks to investors and must not promise capital insurance benefits in any form. The first is to limit the scope of sales agents. At this stage, only trust companies, commercial banks, insurance companies, and securities companies are allowed to sell trust products as agents. Other institutions and individuals are prohibited from selling trust products in disguise. Second, strict risk disclosure requirements. Trust documents are required to clearly reveal the risks and risk bearing principles of trust products. For trust products that intend to invest in other asset management products, it is necessary to thoroughly explain the investment strategies and risk-return characteristics of lower-level asset management products. Third, strict sales management. Trust companies are required to strengthen the management of sales channels, documents and personnel, and clarify responsibilities with sales agents. Clarify the prohibited acts of trust companies and sales agents during the product sales process. Fourth, adhere to the principle of risk matching. Trust companies should classify risk levels for trust products one by one, and clarify the range of investors suitable for sale; divide risk tolerance levels for ordinary investors, including natural persons, one by one, and sell trust products that match their risk tolerance to investors.

The heads of relevant departments and bureaus of the State Financial Supervision and Administration answered questions from reporters on the “Administrative Measures on Asset Management Trusts”. What are the main requirements of the “Measures” with regard to the sale of asset management trusts? Answer: When carrying out asset management trust business, trust companies should fully explain the risks to investors and must not promise capital insurance benefits in any form. The first is to limit the scope of sales agents. At this stage, only trust companies, commercial banks, insurance companies, and securities companies are allowed to sell trust products as agents. Other institutions and individuals are prohibited from selling trust products in disguise. Second, strict risk disclosure requirements. Trust documents are required to clearly reveal the risks and risk bearing principles of trust products. For trust products that intend to invest in other asset management products, it is necessary to thoroughly explain the investment strategies and risk-return characteristics of lower-level asset management products. Third, strict sales management. Trust companies are required to strengthen the management of sales channels, documents and personnel, and clarify responsibilities with sales agents. Clarify the prohibited acts of trust companies and sales agents during the product sales process. Fourth, adhere to the principle of risk matching. Trust companies should classify risk levels for trust products one by one, and clarify the range of investors suitable for sale; divide risk tolerance levels for ordinary investors, including natural persons, one by one, and sell trust products that match their risk tolerance to investors.