Laws of the People's Republic of China

Zheng Jian Ji Jin Zi [2007] No. 76

Securities Depository and Clearing Company Limited, all the fund management companies, fund underwriting institutions and fund custodian banks:

For the purpose of specifying various technical standards for securities investment fund sales information management, and strictly surveilling market entrance and routine acts of fund sales institutions, the Provisions on the Administration of Sales Information Management Platforms of Securities Investment Funds has been formulated in accordance with the Law on Securities Investment Funds and the Measures for the Administration of the Sales of Securities Investment Funds (Decree No. 20 of China Securities Regulatory Commission). It is hereby promulgated. Please implement them accordingly.

China Securities Regulatory Commission

March 15, 2007

Provisions on the Administration of Sales Information Management Platforms of Securities Investment Funds Chapter I General Rules

Article 1

For the purpose of regulating the securities investment fund sales information management, advancing the quality of information services provided to fund investors, and promoting the further development of securities investment fund sales business, the present Provisions are formulated in accordance with the Law on Securities Investment Funds and the Measures for the Administration of the Sales of Securities Investment Funds (hereinafter referred to as the Sales Administrative Measures).

Article 2

Sales information management platform of securities investment funds (hereinafter referred to as information management platform) as referred to in the present Provisions means the information systems that are used for the sales of funds by fund sales institutions, including foreground business systems, background management systems and support systems for applied systems.

Fund sales institutions as referred to in the present Provisions means the fund managers who carry out the subscription, purchase and redemption of fund units lawfully and other institutions that have obtained the qualification for fund underwriting business as well.

Article 3

The establishment and maintenance of information management platforms shall be line with the principles of safety, practicality and systematization, and satisfy the requirements as follows:

(1)

they have all the fund sales functions as referred to in the present Provisions, and are capable of performing the duties of related principals as prescribed in related laws or regulations;

(2)

they have a mechanism for monitoring and checking fund sales information flows and capital flows, and ensure the safety of capital flows of fund investors;

(3)

they have a mechanism for monitoring fund sales rates, and prevent unfair competition in the fund sales business;

(4)

they support the utilize of the applicability principle for fund sales in the fund sales business;

(5)

they have a mechanism of management, supervisory and complaint concerning fund salespersons; and

(6)

they are able to provide the information about monitoring the fund transactions, capital safety and other sales acts for China Securities Regulatory Commission (CSRC) as required.

Article 4

When implementing the activities regarding fund sales, a fund sales institution shall build, reconstruct and manage a related information system under the present Provisions.

Chapter II Foreground Business Systems

Article 5

Foreground business systems means the application systems that are used by fund investors directly or are directly related to the trading activities of fund investors, and are classified into self-service systems and assisted systems.

Assisted foreground system means a software application system that is offered by a fund sales institution and is required for qualified professional service staff to assist fund investors to complete business operations.

Self-service foreground system means an application system that is offered by a fund sales institution, and used for completing business operations by fund investors independently, and comprises of the on-site self-service systems in the outlets of the fund sales institution as well as the off-site self-service systems by internet, telephone or mobile communications, etc.

The foreground business system performs its functions by the network connection with the background management system.

Article 6

A foreground business system shall be able to provide the investment information for fund investors and fund salespersons, and the following contents shall be included in the investment information:

(1)

Basic knowledge with respect to funds;

(2)

Related laws and regulations with respect to funds;

(3)

Fund products information, including basic information, rates, conversion of funds, mode for paying commissions, information on fund risk evaluation and other public market information on funds, etc.;

(4)

Information concerning fund managers and fund custodians;

(5)

Related investment market information on funds; and

(6)

Information with respect to fund sales branches and outlets.

The investment information as provided for fund investors shall come from lawful information sources, and the provider shall disclose the information sources and the time of publicity to fund investors.

Article 7

A foreground business system shall cover the function of managing the information concerning the accounts for fund transaction and fund investors, including the opening of accounts, investigation and assessment of risk tolerance of fund investors, information inquiry about fund investors as well as the alteration of the information, annulment of accounts, password management, applications for freezing or defreezing accounts, etc. with regard to the fund investors:

(1)

When an account is opened for an individual, the information concerning the type and number of the certificate, fund transaction account, the name, date of birth, type and number of the statutory or authorized agent's certificate, name of the statutory or authorized agent, the bank account, contact information and method for delivery of statements, etc. shall be recorded down by the system;

(2)

When an account is opened an entity, information concerning the type and number of the certificate, type, fund transaction account, the name, registration place, name of the legal representative, type and number of the statutory or authorized agent's certificate, name of the statutory or authorized agent, the bank account, contact information and method for delivery of statements, etc. shall be recorded down by the system;

(3)

A reliable mechanism shall be contained by the system for the transaction codes of fund investors and it shall prohibit the system from generating same passwords or weak passwords, and the revision or taking back of passwords by fund investors shall be recorded down as log files; and

(4)

The system shall contain the functions of investigating, assessing and recording down the risk tolerance of fund investors.

Article 8

As for a foreground business system, the functions of subscribing, purchasing and redeeming funds and changing the mode for distributing dividends as well as other trading functions as recognized by CSRC shall be contained:

(1)

whether the risk degree of the funds subscribed or purchased by fund investors matches with the risk tolerance of these fund investors shall be examined by the system; and the function of requiring fund investors to make confirmation and recording down the information concerning the confirmation of fund investors shall be included in the system if the non-matching occurs;

(2)

The transfer of the capital from redemption into any bank account which is not owned by the fund investor shall be prohibited in the system; and if a fund investor makes alterations to his bank account after filing an application for redemption but before the return of the capital from redemption into his account, it shall be deemed as an abnormal transaction, and shall be recorded down in the system;

(3)

The function of revising the sales rates may not be included in the system; and

(4)

The correct indications shall be made for the transaction applications as submitted at the time other than the opening hours for fund transactions.

Article 9

A foreground business system shall have the function of providing services to fund investors:

(1)

The service for inquiring about the information with respect to the fund products and fund units as held by fund investors, details about fund transactions as performed by fund investors, capital transfer for fund transactions as implemented by fund investors, fund products suitable for the risk tolerance of fund investors, net value of funds and fund proceeds, etc. shall be offered by the system;

(2)

The statements shall be provided to fund investors regularly and irregularly by a mode as chosen by fund investors, which shall comprise of the fund units as held by each fund holder, details regarding the transactions occurred in the fund transaction account of each fund investor, conditions on collection of commissions, and the means for distributing dividends, etc.; and

(3)

The information about the complaints put forward by fund investors shall be recorded down by the system, which shall contain the name of the fund investor, time of complaint, matter as complained about, handling process and results, etc.

Chapter III Self-service Foreground Systems

Article 10

A self-service foreground system shall satisfy the provisions as prescribed in this Chapter at the same time upon the requirements as prescribed in Chapter II.

Article 11

Various methods shall be provided for fund investors to verify their real identities and qualifications in the self-service foreground system by a fund sales institution, which shall comprise of the provision of related certification documents with respect to lawful sales of funds and the contact information of the supervisory organ for fund investors to conduct convenient verifications.

The related personnel that provide supporting services in the self-service foreground system shall be required for the same qualification as for the employees that provide face-to-face services at the similar positions; and a self-service foreground system shall provide a function of checking the qualifications of related personnel for fund investors.

Article 12

The following information shall be disclosed to fund investors by way of online reading, downloading and links of documents or voice indicating, etc. in a self-service foreground system:

(1)

Information on the fund sales institution, including the registration address, main office site, branches and outlets of fund sales, and contact information, etc.;

(2)

Models of the client's account opening agreement or any other related document;

(3)

Two or more means for handling complaints; and

(4)

Revealing related risks in the self-service and the prevention measures of fund investors, including information safety, abnormal operations and system malfunction, etc., and reminding fund investors of their obligations of verifying the information as provided by the fund sales institution through the third party and the obligation of keeping their identity data as passwords, certificates and etc. properly.

Article 13

When opening a fund transaction account through the self-service foreground system, the fund investor shall be required to offer related materials that may prove his identity, verify his identity by adopting an equivalent real-name system; and when opening an account independently or revising the information about the account by a fund investor, the fund sales institution shall verify the identity of the name of the fund investor with the bank account thereof.

A self-service foreground system shall have the function of verifying the identity of the fund investor for conducting self-service operations and take lawful and valid anti-denial measures; where a fund investor carries out operations by the internet, the IP address and digital certificate, etc. of the operator shall be recorded down by the system, and if through the phone, the phone number shall be recorded down.

In case of any surplus, transaction or rights in float in a fund transaction account, a fund investor may not conduct such important operations as cancel this fund transaction account through a self-service foreground system, designate the alteration of bank account, and shall go through the aforesaid operations at the counter upon his valid certificate.

Article 14

The following quotas shall be set in the self-service foreground system by any fund sales institution:

(1)

the maximum amount that a fund investor may subscribe or purchase funds in a single deal or in a day accumulatively; and

(2)

the maximum amount that a fund investor may redeem funds in a single deal or in a day accumulatively.

Article 15

Standby service measures or schemes shall be provided to fund investors by all fund sales institutions when the self-service foreground system breaks down.

Article 16

Each function as designed in the self-service foreground system shall have the friendly interface, be convenient to use, and have the function of preventing or correcting wrong operations of fund investors.

Chapter IV Background Management Systems

Article 17

A background management system shall implement the data support and centralized management for the foreground business system, the functions of which shall be used only inside the fund sales institution.

Article 18

In a background management system, the related information with respect to the fund sales institution, branches and outlets of fund sales, and fund salespersons shall be recorded down, and the functions of managing, examining and monitoring the branches and outlets of fund sales as well as the fund salespersons shall be remained:

(1)

The basic information concerning the fund sales institution shall comprise of the name, registration place, contact person, person in charge and contact information, etc.;

(2)

The basic information concerning the branches and outlets of fund sales shall comprise of names, addresses, contact persons, persons in charge and contact information, etc.; and

(3)

The basic information on the fund salespersons shall comprise of their names, contact information, sales branches and outlets where they are serving, and the qualification certificates, etc.; and the system shall be able to record down the training records and irregularity information, etc. concerning fund salespersons.

Article 19

The information regarding the risk evaluation of funds, fund managers, fund products and investments, etc. shall be recorded down and managed by a background management system:

(1)

The information on a fund manager shall include the name, registration address, main office site, person in charge, contact person and contact information, etc. thereof;

(2)

The information concerning a fund product shall include the code, name, type, trading quota, and rate, etc. of the fund; and

(3)

The system shall be able to monitor the regularity of fund sales rates.

Article 20

In a background management system, the transaction applications that are received at the time other than the opening hours for fund transactions shall be disposed of correctly so as to prevent the off-hour trading by fund investors.

Article 21

A background management system shall be able to liquidate transactions and dispose the capital so as to complete the data exchange with the fund registration system and the bank system:

(1)

Inputting the data on opening fund accounts and fund transactions as confirmed by the fund registration institution into the system for disposal shall be remained within the functions thereof, including the confirmation of the annulment of accounts, freeze of accounts, freeze of shares, defreeze of accounts, defreeze of shares, non-trade transfer of funds, division of shares and other special business disposal functions as launched by the fund registration institution;

(2)

Recording down the bank accounts of fund investors and the capital transfer information shall be remained within the functions thereof; and

(3)

Controlling the fund sales scale with a fund registration system shall be remained within the functions thereof.

Article 22

A background management system shall be able to check the information flows and capital flows as involved:

(1)

Checking whether the fund units held by fund investors as recorded down by the fund sales institution conform to the data as provided by the fund registration institution;

(2)

Checking whether the amount booked in and out of special fund sales accounts are identical with the amount of subscription and purchase and the amount of redemption as recorded down by the fund registration institution;

(3)

Checking the details of trading dates, funds, fund investors, and branches, etc.; and

(4)

Recording down the problems that are found during the course of checking, and giving warnings against major problems and logging actual methods of resolution.

Chapter V Submission of the Information to the Supervisory System

Article 23

The following information shall be provided to the CSRC fund supervisory business information system by a fund sales institution, and the genuineness, accuracy and integrity thereof shall be guaranteed:

(1)

Daily fund transactions of the fund sales institution;

(2)

Monthly summaries of the information concerning whether the risk degree of the funds as subscribed and purchased by fund investors match with the risk tolerance thereof;

(3)

Monthly summaries of the information on abnormal fund transactions;

(4)

Quarterly internal audit reports of the fund sales institution;

(5)

Annual financial and business information of the fund sales institution;

(6)

Instructions about the fund risk assessment methods of the fund sales institution;

(7)

Instructions about the methods of the fund sales institution for investigating and assessing the risk tolerance of fund investors; and

(8)

Other information as required by the CSRC.

The bank that opens exclusive fund sales accounts shall be entrusted by a fund sales institution to provide the daily capital flow data concerning the said exclusive fund sales accounts to the CSRC fund supervisory business information system.

Article 24

The confirmation information concerning daily fund transactions shall be provided to the CSRC fund supervisory business information system by all fund registration institutions, and the authenticity, accuracy and integrity thereof shall be guaranteed.

The bank that opens settlement accounts shall be entrusted by a fund sales institution to provide the daily capital flow data concerning settlement accounts to the CSRC fund supervisory business information system.

Chapter VI Administration of Information Management Platforms

Article 25

The support system of the application system to the information management platform shall comprise of databases, servers, network communications, and security guards, etc., and back-up measures or schemes shall be provided for the component parts of a key support system.

Article 26

An information management platform shall have the technical features of uniformly business disposal and uniformly data storage so as to keep the information on fund investors, trading records, information concerning fund salespersons and service information to fund investors, or any other electronic data in a centralized manner.

Article 27

Such reports as putting the system into use, performing major upgrading to the system and annual technical risk assessment shall be submitted to the CSRC for archival filing.

Interconnection tests shall be implemented together with fund managers and the fund registration institution when upgrading a system.

Article 28

A fund sales institution shall formulate the business continuity scheme and the disaster resumption scheme, and corresponding drills shall be performed regularly.

Article 29

A fund sales institution shall set up a perfect monitoring system so as to record down system upgrading, network visiting, database access, revision of user passwords or any other important operation, and keep log files properly.

Article 30

The system data shall be backed up everyday and shall be kept on different places properly, and the backup of the information on fund investors and the trading records in the system operating data shall be kept on the media that can not be changed for 15 years.

Article 31

The reliable encryption shall be performed for the transmission of sensitive data such as the identities of fund investors and the detailed transactions on the public network, and no plain text means shall be used for the storage and transmission of the trading passwords of fund investors; and the business, operation and maintenance personnel of a fund sales institution may not directly alter the trading data or passwords of fund investors; and in case of any alteration as required for any special reason, rigid procedures shall be implemented and marks shall be left accordingly.

Article 32

A fund sales institution shall appropriately manage the project documents and technical files in the management system; and with regard to a core business system that is developed as required, the fund sales institution shall require the developer to provide source code or give the source code to a third party for custody.

Article 33

A fund sales institution shall take guild standards and data interfaces that have already been promulgated in the system development and operation.

Article 34

On the basis of the guaranteed safety, a fund sales institution may outsource such professional services as systems integration, application development, operations maintenance, equipment custody, network communications, technical advice, and etc. to service providers having a corresponding qualification in light of the principle of fair competition in the market. A fund sales institution shall conclude a detailed business contract with the party that undertakes the technical outsourcing so as to clarify the duties respectively.

The basic information concerning selection or alteration of the party that undertakes the technical outsourcing shall be submitted to the CSRC for archival filing.

Article 35

When outsourcing technical services, the fund sales institution shall assume the final management duty for the safe operation of the information management platform.

Chapter VII Supplementary Rules

Article 36

The CSRC and the agencies thereof shall be entitled to monitor the fund transactions, capital safety and other sales activities by its fund supervisory business information system.

Article 37

The CSRC and the agencies thereof shall be entitled to conduct on-site inspections of the information platforms of fund sales institutions, and may adopt monitoring measures accordingly under specific situation and the related laws and regulations if any major problem is found.

Article 38

As for an institution that plans to apply for the qualification for fund underwriting business, it shall build a related information system as required in the Sales Administrative Measures and the present Provisions, and supplement and improve the related contents in the application materials for the fund underwriting qualification at the same time.

Article 39

As for fund managers and those institutions that have obtained the qualification for fund underwriting business, they shall complete the reconstruction of related information system within one year as of the implementation of the present Provisions in accordance with the present Provisions, and prepare for the on-site inspections of CSRC and the agencies thereof on the information management platform simultaneously.

Article 40

The format requirements for the data exchanges as submitted by fund sales institutions and fund registration institutions to the CSRC fund supervisory business information system shall be informed by the CSRC separately.

Article 41

The present Provisions shall enter into force as of the promulgation date.