SGE Seeks Comments on Implementing Rules for the Registration and Custody of Gold Asset Management Business

The Shanghai Gold Exchange ("SGE") has recently issued the Implementing Rules for the Registration and Custody of Gold Asset Management Business (Draft for Comment) (the "Draft for Comment") to seek comments from all market participants by March 27, 2019.

The 30 articles of the Draft for Comment are organized into six chapters which include "General Provisions", "Registration and Escrow Accounts", "Registration" and "Custody". Among others, the Draft for Comment explicitly states that, the financial institutions issuing or managing gold asset management products (the "issuing or management institutions") and the financial institutions offering the registration and custody services shall, prior to the initial registration, register for an account in the Registration and Custody System for Gold Asset Management Business by submitting relevant documents, including the "supporting documentation for the custody (which shall be issued by institutions placing funds under custody)". Also, the Draft for Comment notes that, where gold asset management products are cancelled, terminated in advanced, or get mature, the issuing or management institutions shall register the termination of the gold asset management products in the said Registration and Custody System for Gold Asset Management Business, within a month after the cancellation, advanced termination or maturity of the products.



(Source: https://www.sge.com.cn/jjsnotice/5144997)

Note: The link to the Chinese official website of the document is for your reference.