China Securities Regulatory Commission solicits public opinions on the "Regulations on Management of Sales Fees for Publicly Offered Securities Investment Funds (Draft for Soliciting Opinions)."

On September 5th, the China Securities Regulatory Commission solicited public opinions on the "Regulations on the Management of Sales Fees for Publicly Offered Securities Investment Funds (Draft for Solicitation of Comments)". The "Regulations" consist of six chapters and 28 articles, with the main contents as follows: Firstly, to reasonably reduce the subscription fees, front-end fees, and sales service fees of public funds, to reduce investor costs. Secondly, to optimize redemption arrangements, clearly stating that full redemption fees for public funds will be included in the fund's assets. Thirdly, to encourage long-term holdings, it is specified that for investors who hold stock funds, hybrid funds, and bond funds for more than one year, no sales service fees will be charged. Fourthly, to adhere to the development direction of equity funds, setting a differentiated maximum commission payment ratio. Fifth, to strengthen the regulation of fund sales fees, addressing issues such as the allocation of interest on settlement funds for fund sales and double charging in fund advisory services. Sixth, to establish a direct sales service platform for institutional investors in the fund industry, providing efficient, convenient, and secure services for the development of direct sales business by fund managers. In order to implement the "Action Plan for Promoting the High-Quality Development of Publicly Offered Funds", further reduce the costs of fund investors, regulate the sales market of public funds, protect the legitimate rights and interests of fund investors, and promote the high-quality development of the public fund industry, the China Securities Regulatory Commission has revised the "Regulations on the Management of Open-ended Securities Investment Fund Sales Costs" and renamed it as the "Regulations on the Management of Sales Costs for Publicly Offered Securities Investment Funds" (hereinafter referred to as the "Regulations"), and is now soliciting public opinions. Welcome valuable suggestions from all sectors of society on the "Regulations". The China Securities Regulatory Commission will further improve them and complete relevant procedures based on the feedback from the public consultation before officially implementing them. This article is selected from the "Official Website of the China Securities Regulatory Commission", edited by Xu Wenqiang.