Core Viewpoint - The China Securities Investment Fund Industry Association has drafted the "Regulations on the Sales Behavior of Publicly Offered Securities Investment Funds (Draft for Comments)" to further regulate fund sales and promotional activities, particularly focusing on the increasingly popular fund live-streaming business [1][6]. Group 1: Platform and Personnel - Fund managers and sales institutions must sign specific agreements with live-streaming platforms to clarify rights and obligations [2][7]. - Live-streaming platforms without fund sales qualifications are prohibited from participating in fund sales activities and must comply with the "Information Technology Management Measures for Securities and Fund Operating Institutions" [2][7]. - Live-streaming personnel must possess fund practitioner qualifications and be employed by fund managers or sales institutions; unqualified personnel are not allowed to introduce or comment on fund-related content [2][7]. Group 2: Content and Process - The draft outlines a systematic compliance management requirement for the live-streaming process, emphasizing "pre-audit, in-process monitoring, and post-review" [3][8]. - Pre-audit involves compliance checks on the live-stream script, including key and sensitive issues, and requires a clear response plan [3][8]. - In-process control mandates that the live-streaming party must have contingency plans for unexpected situations and manage the comment section effectively [3][8]. - Post-review requires compliance records to be filled out, and the compliance department must review the content based on risk levels [3][8]. Group 3: Data Preservation - New regulations specify different preservation periods for live-streaming materials based on content type: materials related to brand promotion and fund sales must be preserved for at least 20 years, while investor education materials must be kept for at least 3 years [4][9]. - Fund managers and sales institutions must negotiate to obtain live-stream videos from unqualified platforms; if not possible, they must record and preserve the content accordingly [4][9]. - The introduction of this draft may signify that the fund live-streaming marketing channel will be subject to strict and unified regulatory frameworks to curb misleading promotions and promote a return to professional investor services [4][9].

Core Viewpoint - The recent draft of the "Regulations on the Sales Behavior of Publicly Raised Securities Investment Funds" aims to strengthen investor protection and standardize the fund sales industry, addressing misleading practices and ensuring the best interests of investors are prioritized [1][15]. Group 1: Fund Sales Behavior Regulations - The draft outlines detailed regulations on fund promotion, live streaming, and sales performance evaluation, emphasizing the prohibition of excessive promotion of fund managers for rapid fundraising [1][3][5]. - Fund managers and sales institutions must objectively and comprehensively present fund performance, ensuring that performance periods exceed six months and avoiding annualized displays for periods under one year [3][12]. - The draft prohibits the use of misleading terms like "positive return" that may cause investors to overlook risks, suggesting a need for balanced risk disclosure [3][4]. Group 2: Live Streaming Regulations - The draft mandates that fund managers and sales institutions ensure compliance and risk management in live streaming activities, requiring agreements with streaming platforms to clarify rights and responsibilities [7][9]. - Only qualified personnel can present fund-related content during live streams, and platforms must disable tipping features to prevent conflicts of interest [8][9]. Group 3: Fee Disclosure Requirements - Fund managers and sales institutions must ensure investors can access and understand fund product summaries, including detailed fee structures for various share classes [12][11]. - Clear disclosure of redemption fees and other costs associated with fund transactions is required to enhance investor awareness [12]. Group 4: Performance Evaluation Optimization - The draft proposes a systematic optimization of performance evaluation mechanisms for fund sales, aligning them with long-term investor outcomes rather than short-term sales metrics [14][15]. - Performance indicators should focus on investor profitability and long-term investment returns, with a minimum evaluation period of one year for sales activities and three years for investor outcomes [14].

Core Viewpoint - The China Securities Investment Fund Industry Association has drafted the "Regulations on the Sales Behavior of Publicly Raised Securities Investment Funds (Draft for Comments)" to further regulate fund sales and promotional activities [1][3]. Group 1: Fund Sales and Promotion Regulations - Fund managers and sales institutions must carefully choose promotional language and avoid misleading investors with exaggerated terms or titles, particularly regarding fund size and growth [1][3]. - When promoting fund managers, emphasis should be placed on the research team and platform capabilities, avoiding excessive promotion aimed at rapid fundraising, conflating years of experience with actual investment management experience, and linking fund awards to fund managers [1][3]. - For index fund promotions, the focus should be on the tool attributes and asset allocation functions, guiding investors rationally while adhering to regulations regarding performance display and risk [1][3]. Group 2: Risk Disclosure and Compliance - When promoting interbank deposit funds, fund managers and sales institutions must adequately disclose net value fluctuation risks and not overly emphasize stability or low-risk attributes [1][3]. - Fund managers and sales institutions must ensure that third-party media used for promotion have the necessary business qualifications, and that the promotional methods and content comply with advertising laws and self-regulatory rules [2][4].

Core Viewpoint - The article discusses the issuance of a draft regulation aimed at standardizing the sales behavior of publicly offered securities investment funds in China, focusing on investor protection and the prevention of misleading practices [2]. Group 1: Fund Sales Behavior Regulations - The draft regulation prohibits excessive promotion of fund managers for the purpose of rapid fundraising and requires clear differentiation between a fund manager's years of service and actual investment management experience [2][6]. - Fund managers and sales institutions must adopt a long-term sales philosophy centered on the best interests of investors and fulfill obligations related to risk preference and capacity identification [2]. Group 2: Fund Performance and Promotion Standards - Fund performance must be presented objectively and comprehensively, with specific requirements such as a minimum performance display period of six months and the use of data from recognized evaluation agencies for rankings [4]. - The use of terms like "positive return" or "probability of positive return" is prohibited to prevent investors from overlooking risks, although some industry experts suggest allowing objective displays of past performance with appropriate risk disclosures [5]. Group 3: Live Streaming Regulations - The draft outlines compliance requirements for fund managers and sales institutions conducting live streaming, including the necessity for qualified personnel and agreements with streaming platforms to ensure compliance with sales regulations [8][10]. - Live streaming personnel must have relevant qualifications and adhere to advertising laws, while platforms must disable tipping features to prevent conflicts of interest [9]. Group 4: Disclosure of Fees and Costs - Fund managers and sales institutions are required to ensure that investors can access and understand fund product information, including various fees such as subscription, redemption, and service fees [13]. - Different share classes must have their fee structures disclosed, and sales institutions must clarify the definition and collection methods of service fees [13]. Group 5: Performance Assessment Optimization - The draft aims to shift the focus of performance assessments away from short-term aggressive sales towards long-term value creation, incorporating factors like compliance and risk management into the evaluation criteria [15][16]. - Sales performance metrics should include long-term investor outcomes and avoid prioritizing sales revenue or scale as primary indicators [16].

Core Viewpoint - The regulatory authority has issued a draft titled "Norms for the Sales Behavior of Publicly Raised Securities Investment Funds" to standardize fund sales practices and protect investors' rights [1]. Group 1 - The new regulations aim to prevent misleading sales activities in the fund industry [1]. - Multiple fund companies have confirmed receipt of the related documents [1].

Core Viewpoint - The China Securities Investment Fund Industry Association has drafted the "Regulations on the Sales Behavior of Publicly Raised Securities Investment Funds (Draft for Comments)" to standardize fund sales practices and protect investors' rights [1][4]. Group 1: Fund Sales Behavior Regulations - The draft specifies clear requirements for general promotional activities, live streaming promotions, disclosure of sales information and fees, and performance evaluation of fund sales [1][4]. - Fund managers and sales institutions must objectively and comprehensively present fund performance, clearly indicating that past performance does not guarantee future returns, and must not promise future returns in any form [1][4]. Group 2: Performance Display Requirements - Fund performance must be displayed for a minimum of six months, and annualized performance cannot be shown for periods shorter than one year unless otherwise specified by law [2][5]. - Performance rankings must use publicly available data from fund evaluation agencies for periods of three years or more, including the agency's name, evaluation date, and the type and number of similar funds [2][5]. - Risk indicators related to fund performance must be displayed alongside performance data, and both must cover the same time period [2][5]. Group 3: Promotional Language and Live Streaming - Fund managers and sales institutions must choose promotional language carefully, avoiding misleading or exaggerated terms, and cannot promote fund size or growth [6]. - Live streaming personnel must possess relevant qualifications and be employed by fund management or sales institutions; unqualified personnel are prohibited from discussing fund-related content [6]. Group 4: Sales Performance Evaluation - The performance evaluation of fund sales must include metrics on sales activities and investor profit and loss situations, with a focus on long-term investor returns and the proportion of profitable investors [3][6]. - The evaluation metrics for sales activities should cover a minimum period of one year, while investor profit and loss metrics should focus on a three-year or longer timeframe [3][6].

Group 1 - The performance of funds must be displayed for a period exceeding six months, and annualized performance cannot be shown for periods shorter than one year unless specified by laws and regulations [1] - Fund performance rankings should reference publicly available data from fund evaluation agencies for periods longer than three years, including the name of the evaluation agency, evaluation date, type of similar funds, and the number of funds [1] - When displaying fund performance, risk indicators related to return volatility must also be presented and explained in a clear manner to investors, ensuring that the display periods for performance and risk indicators are consistent [1]