New Private Fund Disclosure Rules Seek Public Comment, Strengthening Penetrating Disclosure to Ensure Authenticity

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Reporter Wei Shuguang from Securities Times

On March 13, the Asset Management Association of China released the “Implementation Rules for Private Fund Information Disclosure (Draft for Comments)” and the “Template for Key Content of Private Fund Information Disclosure (Draft for Comments)” to solicit public opinions. The revision aims to implement the “Measures for Supervision and Administration of Private Fund Information Disclosure” by the China Securities Regulatory Commission, through refining disclosure standards, strengthening transparency requirements, and improving self-regulation mechanisms, to promote the standardized development of the private fund industry and effectively protect investors’ legal rights and interests.

The new rules specify differentiated and detailed disclosure requirements for regular reports of private securities funds and private equity funds. Private securities funds must clarify details such as net value, financial status, leverage levels, related-party transactions, cross-border investments, and disclose the assets, amounts, and ratios after transparency and consolidation of nested investments; assets exceeding a certain proportion of net assets must be disclosed separately. For cross-border investments, disclosures must include scale, methods, and channels. The standards for audits are also clarified: if the proportion of assets with liquidity restrictions at the end of the quarter, New Third Board stocks, off-exchange derivatives, overseas assets, and other private funds managed by different managers exceeds 60% individually or in total, the annual report must be audited by a CPA firm compliant with the Securities Law.

Private equity funds focus on disclosures of net assets, leverage, related-party transactions, etc. Investment projects must specify industry, amount, exit methods, and structure; nested investments require transparency of the top ten projects. For funds exceeding 100 million yuan and with more than 20 individual investors, the annual report must also be audited to ensure the accuracy and reliability of information.

For interim reports, significant related-party transactions must disclose related parties, transaction prices, amounts, and pricing basis; liquidation reports must be disclosed temporarily if liquidation cannot be completed on time, and continuous disclosure according to regular reporting requirements must be maintained before liquidation to avoid information gaps.

The association is also developing templates for key content of information disclosure, requiring managers to disclose at least the content specified in the templates, with flexible formats to reflect the characteristics of private funds. It also clarifies requirements for backup platforms for information disclosure: managers must back up data on platforms designated by the CSRC, investors can log in to query, and platform information must be kept strictly confidential, used only for regulatory investigations and inquiries. Additionally, the new rules specify detailed text management and confidentiality requirements to ensure orderly and standardized disclosure.

The association will regulate the disclosure behavior of managers, custodians, sales institutions, service agencies, and their staff according to laws, regulations, and self-regulation rules. Measures may include interviews, written warnings, and deadlines for correction. Serious violations may result in warnings, public reprimands, restrictions on business activities, and other disciplinary actions to create an effective deterrent.

The new rules are scheduled to take effect on September 1, 2026, with the old regulations issued in 2016 being repealed simultaneously. Considering the need for system upgrades and document improvements, the association will further refine the rules based on feedback and release them as soon as possible, and will comprehensively upgrade the private fund information disclosure backup system, with specific launch dates to be announced separately.

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Editor: Shi Xiuzhen SF183