The China Securities Association revised and issued the “Rules for the Management of Offline Investors in Publicly Raised Real Estate Investment Trust Funds”

The Zhitong Finance App learned that on December 31, the China Securities Association revised and issued the “Rules for the Administration of Offline Investors in Public Real Estate Investment Trust Funds”, which were officially implemented on the date of publication. The main revisions to the rules include adapting the name of the rules, and expanding the scope of application of the rules from real estate investment trusts in the infrastructure sector to commercial real estate investment trusts. Strengthen offline investor registration management. On the basis that registration conditions such as institutional investor establishment requirements, continuous operation time, and asset size remain the same, take into account the business characteristics of commercial real estate investment trust funds, add requirements for institutional investors to research pricing capabilities, compliance risk control levels, communication equipment control, and internal accountability and performance compensation constraints.

The revisions also include strengthening the appropriateness management of offline investors, maintaining integration with the “Rules for the Administration of Offline Investors in Initial Public Offering of Securities”, clarifying that when important matters occur among offline investors or the placement targets they manage, they should promptly fulfill their reporting obligations, and achieve normalized and dynamic management of offline investors. Standardize the practice of fund managers and financial advisors, make it clear that fund managers and financial advisors should carry out their duties, be diligent and conscientious, and do a good job of verifying and monitoring the offline inquiry and subscription business of real estate funds. Continue to clean up the offline distribution market ecosystem, adhere to the principle of combining punishment and punishment, take corresponding measures to deal with discovered illegal acts of offline investors, and strengthen the deterrent against offenders. In addition, the rules also make it clear that the Association can implement hierarchical classification and self-regulatory management for offline investors and placement targets according to the needs of self-regulatory management practices, strengthen reputation restrictions, and build a team of offline investors in high-quality real estate investment trust funds.

The original text is as follows:

The China Securities Association issued the “Rules for the Management of Offline Investors in Publicly Raised Real Estate Investment Trust Funds”

In order to thoroughly implement the spirit of the Third and Fourth Plenums of the 20th CPC Central Committee and the Central Economic Work Conference, implement the requirements of the new “National Nine Rules” and “1+N” policy system, link the “Notice of the China Securities Regulatory Commission on Launching a Pilot Commercial Real Estate Investment Trust Fund”, strengthen offline investor management, give full play to the research and pricing role of professional institutional investors, create a good offline distribution order, and promote the high-quality development of the real estate investment trust fund (REITs) market, the China Securities Association (hereinafter referred to as the Association) revised and issued the “Public Procurement Real Estate Investment Trust Fund Offline Investor Management” “Rules” are also officially implemented from the date of publication.

The main revisions to the rules include: First, adapting the name of the rules, expanding the scope of application of the rules from real estate investment trusts in the infrastructure sector to commercial real estate investment trusts. The second is to strengthen offline investor registration management. On the basis that registration conditions such as institutional investor establishment requirements, continuous operation time, and asset size remain unchanged, combined with the business characteristics of commercial real estate investment trust funds, new requirements for institutional investors in terms of research and pricing ability, compliance risk control level, communication equipment control, and internal accountability and performance compensation constraints. The third is to strengthen the proper management of offline investors, maintain integration with the “Rules for the Administration of Offline Investors in Initial Public Issuance of Securities”, and clarify that when important matters occur among offline investors or the placement targets they manage, they should promptly fulfill their reporting obligations to achieve normalized and dynamic management of offline investors. Fourth, standardize the practice of fund managers and financial advisors, make it clear that fund managers and financial advisors should carry out their duties, be diligent and conscientious, and do a good job of verifying and monitoring the offline inquiry and subscription business of real estate funds. Fifth, continue to clean up the offline distribution market ecosystem, adhere to the principle of combining punishment and punishment, take corresponding measures to deal with discovered illegal acts of offline investors, and strengthen deterrence against offenders. In addition, the rules also make it clear that the Association can implement hierarchical classification and self-regulatory management for offline investors and placement targets according to the needs of self-regulatory management practices, strengthen reputation restrictions, and build a team of offline investors in high-quality real estate investment trust funds.

In the next step, the Association will guide and supervise offline investors, fund managers, and financial advisors to understand and apply self-regulatory rules through methods such as training and interpretation of rules, strengthening market monitoring and carrying out self-regulatory inspections, etc., and will continue to regulate the online issuance business of publicly raised real estate investment trust funds.

This article was selected from the WeChat account “Published by the China Securities Association”. Zhitong Finance Editor: Xu Wenqiang.