CSRC: Differentiated Investment Ratio Requirements Set for Long-Term Capital Investing in Private Fund-of-Funds

36Kr has learned that, to further regulate the business activities of private investment fund-of-funds and promote their standardized and healthy development, the China Securities Regulatory Commission has drafted the Administrative Provisions on Private Investment Fund-of-Funds for public comment. The Fund-of-Funds Provisions contain 23 articles, with main contents including: First, clarifying the concept and specific categories of private investment fund-of-funds, refining identification standards, and classifying them according to differences in investment scope. Second, clarifying diversified investment requirements for private investment fund-of-funds and setting differentiated investment ratio requirements for long-term capital investing in them. Third, clarifying that private investment fund-of-funds are exempt from being counted as a layer of investment hierarchy. Fourth, imposing ongoing requirements on managers who manage different types of private investment fund-of-funds. Fifth, clarifying operational and management requirements for private investment fund-of-funds, reinforcing managers' responsibility for active management, establishing and improving post-investment monitoring, look-through management and risk monitoring mechanisms, and setting corresponding requirements for fund custody, conflict of interest and related-party transaction management. Sixth, refining the negative list for private investment fund-of-funds investments to uphold compliance bottom lines.