On 30 June 2016, the Asset Management Association of China (AMAC) released a 10th FAQ Regarding the Registration and Record-Filing of Private Funds (FAQ No.10), confirming that foreign financial institutions are permitted to engage in private securities investment fund management business in China via setting up WFOEs or JVs. The FAQ No. 10 also elaborates the qualification criteria for WFOEs and JVs participating in such business as well as the registration and record-filing requirements.
In this News Flash, we will highlight the background of FAQ No. 10, summarise the criteria for qualified WFOEs and JVs, and share our observations on some practical issues. Foreign financial institutions that consider entering the Chinese private securities market as a fund manager should assess the impact of this development and make commercial adjustment to fulfil the criteria where necessary.
Asia Pacific Tax Leader Financial Services, Asset & Wealth Management
Tel: + 2289 1833
Tel: + (21) 2323 2907
Funds Audit Partner, PwC China Private Equity Group
Tel: + (10) 6533 2599
Tel: + (10) 6533 3129
Tel: + (21) 2323 3487
Puay Khoon Lee
Tel: + 2289 3828