On 1 March 2017, the Asset Management Association of China ( "AMAC") circulated the Administrative Measures on the Private Investment Fund Service Business (the "Measures"), effective immediately.
The Measures apply to five types of services that could be provided by a servicing institution entrusted by a private fund manager, for a private fund or a private asset management plan issued by a securities or futures operation institution, i.e. fundraising, investment advisory, interest registration, valuation calculation and information technology system services. These services in essence cover the business of fund placement agents, administrators and investment advisors. These service providers are now required to register with AMAC and become members of AMAC. The servicing institutions are required to manage fund and investor assets separately. The Measures, along with the other major self-discipline regulatory rules for private funds issued by AMAC, become part of the framework of self-discipline regulatory rules for the private fund industry in mainland China.
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