Measures For Supervision And Administration Of Money Market Funds

In December 18th, the China Securities Regulatory Commission and the people's Bank of China jointly issued the measures for supervision and management of money market funds (hereinafter referred to as the "management measures"), which shall come into force on February 1, 2016.

Money market fund is a securities investment fund mainly invested in money market instruments, such as short-term bonds and bank deposits. It has the characteristics of high capital security, good liquidity and low investment cost, and is essentially a cash management tool.

The rapid development of money market funds is of great significance to investors, fund industry, money market and capital market.

The CSRC has always attached importance to the development, supervision and management of money market funds.

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The release of the "management measures" was completed on the basis of the Interim Provisions on the management of money market funds issued jointly by the China Securities Regulatory Commission and the people's Bank of China in 2004. It focuses on dealing with the relationship between the innovation development and risk prevention of money market funds. It is also an important measure for the China Securities Regulatory Commission to implement the relevant policy measures and regulatory responsibilities issued by the CPC Central Committee and the State Council on the unified deployment of Internet financial work.

In order to further promote our country

The standardized development of the fund protects the legitimate rights and interests of the fund investors. The management measures have mainly revised the following aspects: first, we should further improve the regulatory requirements of the investment scope, time limit and proportion of money market funds, and strengthen the risk control of the portfolio of money market funds.

Two, a systematic arrangement is made for liquidity management of money market funds to improve the self-control ability of the industry's liquidity risk.

The three is to strictly control the deviation risk of money market fund's shadow pricing under the amortized cost method.

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Four, aiming at the new format of the deep integration of money market funds and the Internet, we put forward specific requirements for the Internet sales activities and disclosure of money market funds.

The five is to encourage money market funds to further innovate and develop under the premise of risk control, actively expand the investment scope of money market funds, support the listing and pfer of money market fund shares, and expand the payment function of money market funds.

The management measures have received nearly 70 feedback from 37 organizations since it was openly solicited to the public on 15 May 2015.

On the whole, the market sides believe that the new method comprehensively summarizes the supervision rules of money market funds, encourages the innovation and development of money market funds on the basis of effectively controlling all kinds of main risks of money market funds, and makes corresponding institutional arrangements for the new formats of money market funds and Internet convergence, which is conducive to promoting the sustained and healthy development of money market funds.

After summarizing and reviewing the feedback opinions, I will adopt reasonable and feasible suggestions and suggestions, and adjust the relevant provisions of the management measures accordingly. The rest of the feedback is mostly advisory opinions, and the follow-up will be provided through the training of laws and regulations.

In addition, in order to ensure the smooth implementation of the management measures, the relevant provisions on the implementation of the supervision and management measures for money market funds have been issued, and specific provisions for the implementation of the "management measures" have been issued.