Private Fund "Surname Private" Strictly Abide By The Law Is King.

Zhang Xiaojun, a spokesman for the securities and Futures Commission, said at a regular press conference held yesterday by the SFC that the administrative review of the SFC maintained a punishment for a private fund violation case.

This is the first case of the administrative review of the securities and Futures Commission, which involves private equity fund raising.

The information disclosed shows that an investment Company limited by guarantee (hereinafter referred to as "investment Guarantee Corporation") is a private equity fund manager. In the process of raising private equity funds, there exist illegal activities of private fund raising, such as publicizing private fund products to non specific objects, undertaking fixed income to investors, failing to perform risk assessment and risk disclosure procedures, and private equity product shares below statutory standards.

Zhang Xiaojun said that the administrative reconsideration decision reflects the clear attitude of regulators to private funds in accordance with the law, strict and comprehensive supervision. The majority of private equity fund management institutions and their employees should fully recognize and strictly abide by the basic legal nature and requirements of private equity fund "surname and private", so as to further enhance compliance awareness in accordance with the law and standardize business practices.

Regarding this, the securities and Futures Commission is based on the Securities Investment Fund Act and the "Securities Investment Fund Act".

The Interim Measures for supervision and management of the fund have decided to give the Guarantee Corporation a warning and impose a fine of 20 thousand yuan. The head of the direct responsible person, XXX, shall be given a warning and a fine of 20 thousand yuan, and he shall be given a warning to another person directly responsible for Tian and a fine of 10 thousand yuan.

Among them, Tian Mou applied for administrative reconsideration to the SFC for disapproval of administrative penalty and requested to cancel the administrative penalty decision made by the SFC.

Recently, the SFC applied to Tian Mou's application.

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After reviewing the review, the SFC identified the applicant, Tian Mou, as the deputy general manager of the investment Guarantee Corporation. Under the instructions of the general manager, he organized and implemented the company's private equity fund raising illegal activities, belonging to "other directly responsible personnel". The administrative committee reconsideration of the securities and Futures Commission found that the administrative punishment made by the securities regulatory bureau was not unsuitable, and decided to maintain the administrative penalty decision on the applicant Tian Mou in accordance with the law.

Zhang Xiaojun said that this is the first case of the administrative review of Securities Regulatory Commission involving private equity fund raising illegal issues.

Private fund managers in the case confuse the legal nature of private equity funds and public offering funds, and raise funds to the public through publicity and recommendation to other specific objects, resulting in the "public offering of private equity funds", which violates the provisions of non-public fund collection and should bear corresponding legal responsibilities.

He said that the administrative reconsideration decision of the SFC reflected the clear attitude of regulators to the strict, comprehensive and strict supervision of private equity funds, and hoped that the majority of private equity fund managers and their employees could draw lessons from this case and draw lessons from it. In particular, we should fully recognize and strictly abide by the basic legal nature and requirements of private equity fund's "surname and private" in the actual collection and management of private equity funds, and further enhance the awareness of compliance in accordance with the law and standardize business practices.