On January 11, the China Securities Regulatory Commission ("CSRC") promulgated the Several Provisions on Strengthening the Regulation of Private Investment Funds (the "Regulations") for implementation as of the date of promulgation.

The Provisions form the "ten must not" prohibitive requirements for private fund managers and practitioners. The main content is as follows: the first is to standardize the name and operation scope of private fund managers, and separate the old rules from the new ones. The second is to optimize the regulation of conglomerate private fund managers to encourage the good ones and restrict the bad ones. The third is to reiterate that private funds should privately raise funds from qualified investors. The fourth is to clarify the property investment requirements for private funds. The fifth is to strengthen the regulatory requirements for subjects such as private fund managers and practitioners, and standardize the development of related party transactions. The sixth is to clarify legal liability and arrangements of the transition period. Among others, according to the requirements of the Provisions, private fund managers should focus on the main business of investment management, and may carry out fund raising, investment management, consulting services, and provide management consulting services for invested companies, by focusing on private fund management, but may not engage in other business in conflict with or unrelated to private fund management.

(Source: China Securities Regulatory Commission)