View this page in: 简体中文版 Jul 2013
The amended "Law of Securities Investment Fund of People’s Republic of China" (hereinafter referred to as the "the Amended Law") was ratified at the 30th Session of the Standing Committee of the 11th National People’s Congress on 28 December 2012. The Amended Law takes effect on 1 June 2013. As compared with the previous Law of Securities Investment Fund which took effect on 1 June 2004, the Amended Law provides detailed regulations on the duties, rights and obligations of fund managers and fund custodians. One of the noteworthy developments brought about by the Amended Law is the relaxation in the approval of the change in equity of the fund management company. It also recognises, for the first time, that fund managers of public funds can set up long-term incentive programmes for their professional employees. It is generally welcomed in the industry as a breakthrough for public funds in attracting talents.
This news alert looks at the salient points of the Amended Law in relation to the long-term incentive programme of fund managers and shares our observations.