As an important part of the asset management industry, the institutional norms of the trust industry are constantly being upgraded and improved. Following the first major revision of the "Trust Company Management Measures" (hereinafter referred to as

This is another crucial institutional piece in the trust industry following the asset management rules in 2018 and the new regulations on trust business classification in 2023, which the industry has long been expecting.

The new regulations are divided into five chapters with a total of 85 articles. They comprehensively strengthen the regulatory requirements for asset management trusts from multiple dimensions such as product positioning, sales management, and invest

Fully comply with the new asset management regulations and the new three-category regulations

As for the background of the Consultation Draft, a department official from the National Financial Supervision and Regulation Administration said during a Q&A session that the current Management Measures for Trust Companies' Collective Fund Trust Pla

Looking back, in 2018, the new regulations on asset management clarified unified standards for asset management business; in 2023, the Notice on Regulating the Classification of Trust Business of Trust Companies (hereinafter referred to as the Notice

In September, the General Administration of Financial Regulation revised and issued the Regulations, comprehensively strengthening the supervision requirements for trust business. In terms of the audit conditions for asset management trust products,

With the implementation of the new three-category regulations, the industry has shown increased attention to the launch of new asset management trust regulations. Previously, after the release of the asset management regulations, corresponding implem

Under the new regulations, how should asset management trusts be positioned? The 'Asset Management Trust Business Activities' stated in the Consultation Draft apply to trust companies raising funds through non-publicly issued collective funds trust p

First and foremost, it should align with the essence of asset management. The document requires that trust companies should serve the best interests of investors, adhere to the principles of seller due diligence, buyer beware; seller negligence, comp

Second, adhere to the private placement. Trust products are non-publicly issued to qualified investors with a maximum number of 200 people. Finally, strict investor standards should be implemented. Based on the implementation of the new asset managem

In recent years, under the three-category framework, the trust industry is gradually shifting from traditional non-standard financing business to a more diversified and specialized business model focused on asset service trust and asset management tr

According to the China Trust Industry Association, as of the end of 2024, the total funds entrusted in the industry will be 22.25 trillion yuan. In the same period, the asset management trust business of 58 trust companies will be 11.39 trillion yuan

Enhancing Full-process Management with Red Lines in Multiple Stages

From the core content, the new rules focus on the whole-process management of trust products, and add new red lines for multiple important links.

First, the requirement for investor concentration is becoming stricter, and it is explicitly stated for the first time that the number of qualified investors needs to be traced upwards.

According to the new regulations, the amount of investment by an individual investor in the same trust product may not exceed 50% of the trust product's actual income trust scale. The total amount of investment by a single institutional investor and

"The main focus is on controlling single concentration to ensure the nature of active management of asset management trusts and prevent some false aggregations. For example, in a 1 billion yuan aggregate trust, 999 million yuan comes from a single in

The new regulations also clarify that if trust products accept investment from other asset management products, trust companies should penetrate the actual investors and the final source of funds. Among them, if the upper-level asset management plan

In the industry's view, this also means that the loophole that allowed bypassing the 200-person limit through TOT in the past has been completely closed. However, for those that passively exceed the 25% investment limit due to factors such as investo

Sun Haibo believes that non-trust product investment trust products do not penetrate the number of investors upwards, which means that many publicly offered bank wealth management product investment trust plans have finally gained their name. "Judgin

From the investment threshold perspective, the documents require that the amount of investment in a single fixed-income or hybrid trust product by a single investor should not be less than RMB 300,000 or equivalent foreign currency, while the amount

Secondly, it is necessary to clarify the upper limit of performance-based compensation. According to documents, the frequency and proportion of performance-based compensation extracted by trust companies as trustees should match the duration of the t

Third, there are restrictions on the concentration of investment assets in trust products. The document requires that the investment amount of a single trust product in the same asset must not exceed 25% of the net income of the trust product, exclud

Meanwhile, for private asset management products with trust products investing in non-standard assets as the underlying assets, trust companies should calculate the above ratio through-and-through. The investment amount of a single trust product in t

The new regulations also require that the total amount of funds invested by all trust products managed by trust companies in the same asset must not exceed 30 billion yuan. The funds invested by all trust products managed by trust companies, includin

Strengthen sales requirements, strictly prohibit channel and fund pool businesses

In terms of the use of trust product assets, the Consultation Draft has drawn six red lines, including not being allowed to directly invest in commercial bank credit assets; and not providing channel services that circumvent regulatory requirements o

Affiliated transactions are also a key focus of regulation. The new rules require trust companies to comprehensively and accurately identify related parties, standardize the identification and pricing of affiliated transactions, and establish and imp

Based on early supervision, the document reiterates that trust companies are not allowed to conduct private investment banking services in the name of trust products to serve financing parties, and are not allowed to conduct or participate in funds p

Compared with the current documents, the new regulations focus on the principles of seller's duty and buyer's responsibility; seller's negligence and compensation according to law, and newly added multiple requirements for trust sales. The head of th

Specifically speaking, the document mainly puts forward requirements in terms of strict risk disclosure requirements, strict sales management, strict risk matching principles, and guidance and strengthening risk awareness. Among them, trust companies

What are the arrangements for the rectification of existing asset management trust business? The above-mentioned person in charge said that trust companies should follow the requirements of the document, sort out the existing asset management trust b

The China Banking and Insurance Regulatory Commission will take the progress of asset management trust business rectification as an important basis for classified supervision and urge all trust companies to make steady and orderly rectification. For