On March 1, 2017, Asset Management Association of China (the “AMAC”) promulgated the Administrative Measures for Private Investment Fund Service Business (Trial) (the “Administrative Measures”) which became effective on the same day. The Administrative Measures superseded the Guidelines on Fund Outsourcing Services (Trial) issued in February 2015 (the “2015 Guidelines”) and became the new guidelines for institutions that desire to provide various professional services for private fund within China.
The Administrative Measures, having taken into consideration the public comments on the consultation draft released late 2016, is comprised of eight chapters with a total of 59 articles. It clarifies the legal relationship between a private fund service institution (a “PFSI”) and a private fund manager (a “PFM”), classifies different types of external private fund services, defines responsibilities or scopes of different types of services, specifies the registration requirements and self-disciplinary administration requirements, and introduces a deregistration mechanism for PFSIs.
