The China Securities Regulatory Commission (CSRC) has recently released the Administrative Provisions on the Securities Trading Expenses of Publicly Offered Securities Investment Funds (the "Provisions"), with effect as of July 1, 2024.
The Provisions, consisting of 19 articles, mainly focus on four areas: (1) lowering commission rates in fund and stock transactions; (2) lowering the upper limit of the securities transaction commission distribution ratio for fund managers; (3) comprehensively strengthening the relevant compliance and internal control requirements for fund managers and securities companies; and (4) clarifying disclosure contents and requirements for transaction commission information at the fund manager level. The Provisions maintain the upper limit of commission distribution ratio at 30% for managers of equity funds with a management scale of less than CNY1 billion; for managers of equity funds with a management scale more than CNY1 billion, the upper limit of commission distribution ratio is lowered from 30% to 15%. Meanwhile, the requirements for the distribution ratio of transaction commissions when the brokerage trading model and the trading unit leasing model coexist are clarified.