China’s NFRA Bans Trust Firms From Improper Channel and Pooled-Fund Business Under New Asset Management Rules

TREE NEWS update: China’s National Financial Regulatory Administration has barred trust companies from conducting improper channel business and from operating pooled-fund business under the newly issued Asset Management Trust Measures. The rules require trust firms to manage asset management trusts independently and prohibit them from transferring management duties to other institutions or individuals, or using trust products to facilitate illegal activities. The Measures also cap a single investor’s share in the same trust product and scrap an exemption that had allowed insurance funds to invest in AAA-rated collective trust products.