Executive Summary
– The 公开募集证券投资基金销售行为规范（征求意见稿） (Public Offering Securities Investment Fund Sales Behavior Norms (Draft for Comments)) introduces a paradigm shift, mandating that fund sales绩效考核 (performance assessment) prioritize long-term investor profitability over short-term sales volume.
– Strict new rules prohibit承诺未来收益 (promising future returns) in fund promotions and require enhanced transparency, including展示基金业绩 (displaying fund performance) over periods exceeding six months with concurrent risk indicators.
– Digital sales channels like直播业务 (live streaming业务) must implement robust风控管理 (risk control management), with qualified personnel and long-term archiving of promotional materials.
– Sales institutions must integrate投资者盈亏情况 (investor profit/loss situation) into core考核指标 (assessment indicators), with evaluation periods extending to three years or more, fundamentally altering incentive structures.
– This regulatory move aligns China’s 基金销售 (fund sales) practices more closely with global standards focused on sustainable value creation and investor protection, impacting fund managers, distributors, and international investors.
A Watershed Moment for China’s Fund Industry
The relentless pursuit of sales规模 (scale) in China’s 基金销售 (fund sales) landscape has long been criticized for fostering short-termism and misaligned incentives. In a decisive move to rectify this, regulators have released the 公开募集证券投资基金销售行为规范（征求意见稿） (Public Offering Securities Investment Fund Sales Behavior Norms (Draft for Comments)), a draft framework that places investor profitability at the heart of the ecosystem. This initiative, reported by 券商中国 (Securities Times China), signals a profound cultural and operational shift for 基金管理人 (fund managers) and 基金销售机构 (fund sales institutions), compelling them to transcend mere asset gathering and focus on delivering genuine, long-term value to clients. For global institutional investors and corporate executives monitoring Chinese equities, this overhaul represents a critical step towards market maturity, where investor outcomes finally take precedence over top-line growth.
Curbing the “Scale-Obsessed” Culture
The draft explicitly targets the previously rampant “重规模” (scale-obsessed)乱象 (chaos), where sales teams were incentivized purely on新发基金 (new fund issuance) volume and销售收入 (sales revenue). This often led to aggressive, misleading tactics and产品兜售 (product pushing) without regard for suitability or long-term performance. The 意见稿 (draft) mandates that institutions牢固树立 (firmly establish) a “以投资者最佳利益” (investor best interests)为核心的销售理念. By making investor profitability a central考核权重 (assessment weight), the regulation aims to decouple sales success from asset accumulation alone, fostering a more sustainable and client-centric industry model.
Reining In Misleading Promotions: A New Era of Transparency
A cornerstone of the new framework is its stringent overhaul of宣传推介 (promotion and marketing) practices. The days of hyperbolic claims and obscured risks are numbered, as the rules demand客观、全面展示 (objective and comprehensive display) of fund attributes, with investor profitability in mind.
Ban on Future Returns Promises and Enhanced Performance Disclosure
The 意见稿 (draft) unequivocally states that firms不得以明示暗示或任何方式承诺未来收益 (cannot explicitly, implicitly, or in any way promise future returns). This closes a common loophole used in past sales pitches. Furthermore, performance展示 (display) is now heavily regulated:
– 基金业绩任意展示期间均应当超过六个月 (Any fund performance display period must exceed six months), and业绩 (performance) for periods under one year cannot be annualized, preventing misleading short-term projections.
– 基金业绩排名 (Fund performance rankings) must cite三年期以上的公开数据 (public data of three years or more) from recognized基金评价机构 (fund evaluation agencies), with the agency name, evaluation date, and peer group details clearly listed.
– Crucially,展示基金业绩时 (when displaying fund performance), firms must simultaneously show基金收益波动风险指标 (fund return volatility risk indicators) and explain them in通俗易懂的方式 (an easy-to-understand manner). This paired presentation helps investors better assess the risk-return profile, a key factor for long-term investor profitability.
– Misleading terms like “正收益” (positive returns) or “正收益概率” (probability of positive returns) that may cause investors to忽略风险 (ignore risks) are prohibited.
Governance in the Digital Age: Taming Live Streaming Sales
The explosive growth of直播业务 (live streaming业务) for fund education and sales has introduced new合规 (compliance) challenges. The 意见稿 (draft) brings this channel under strict supervision, ensuring that the pursuit of investor profitability is not compromised by the haste of digital marketing.
Strict Controls and Qualifications for Live Streamers
Institutions must ensure their合规管理和风控能力 (compliance management and risk control capabilities) match the直播业务 (live streaming business). Key requirements include:
– 直播平台 (Live streaming platforms) without基金销售业务资格 (fund sales business qualifications) are barred from介入基金销售业务环节 (intervening in fund sales business links) or collecting investor transaction data.
– 向投资者宣传推介基金的直播人员 (Live streamers promoting funds to investors) must hold a基金从业资格 (fund从业资格) and be employed by the fund manager or sales institution.
– Every直播脚本 (live streaming script) must undergo合规审核 (compliance review), covering流程方案 (process plan), themes, and content. Firms must prepare for关键、敏感问题 (key, sensitive questions) with pre-approved responses.
– Real-time合规监测 (compliance monitoring) and a直播中断机制 (live streaming interruption mechanism) are required to manage突发状况 (unexpected situations) and comment sections.
Long-Term Archiving for Accountability
To ensure accountability and facilitate audits,直播素材 (live streaming materials) for brand promotion, fund sales, or training must be保存 (preserved) for at least二十年 (twenty years). For投资者教育类 (investor education) streams, the minimum is三年 (three years). This creates a durable record, aligning digital activities with the long-term focus on investor profitability.
Overhauling the Sales Engine: Investor Outcomes as the True North
The most transformative aspect of the 意见稿 (draft) is its redefinition of sales success. Moving beyond vanity metrics, the考核机制 (assessment mechanism) must now be closely tied to功能发挥 (function fulfillment) and sustainable outcomes, directly embedding investor profitability into institutional DNA.
Integrating Investor Profit/Loss into Core Metrics
The draft mandates that基金销售业务绩效考核指标 (fund sales business performance assessment indicators) must加大权益类基金保有规模、投资者盈亏情况的考核权重 (increase the assessment weight for equity fund保有规模 (保有规模) and investor profit/loss situation). 销售收入和销售规模 (Sales revenue and sales scale) are explicitly prohibited from being主要考核指标 (primary assessment indicators). The new考核指标 (assessment indicators) are twofold:
– 销售业务开展情况考核指标 (Sales business development assessment indicators): These include基金销售保有规模 (fund sales保有规模), post-launch保有规模及占比 (保有规模 and ratio),定期定额投资业务规模 (regular fixed investment business scale), and逆向销售情况 (reverse sales situations, likely referring to selling during market downturns).
– 投资者盈亏情况考核指标 (Investor profit/loss situation assessment indicators): This groundbreaking category includes投资者长期投资收益 (investors’ long-term investment returns),盈利投资者占比 (percentage of profitable investors), and投资者持有期限 (investor holding period).
Mandating Long-Term Evaluation Horizons
To cement the focus on sustainability, the考核时间 (assessment time frame) is elongated. 销售业务开展情况考核指标 (Sales business development assessment indicators) must use a最短时间区间不得少于一年期 (minimum time interval of no less than one year). For the critical投资者盈亏情况考核指标 (investor profit/loss situation assessment indicators), the evaluation应当以三年以上中长期为主 (should mainly be medium to long-term, over three years). This forces institutions to plan and incentivize behaviors that nurture investor profitability over market cycles, not just quarterly sales targets.
Market Implications and the Road Ahead for Global Stakeholders
This regulatory pivot holds significant consequences for all participants in China’s capital markets. It represents a maturation that enhances the market’s appeal to sophisticated international investors who prioritize governance and alignment of interests.
Immediate Adjustments for Fund Houses and Distributors
基金管理人 (Fund managers) and大型银行 (large banks) or第三方销售平台 (third-party sales platforms) acting as基金销售机构 (fund sales institutions) must urgently review and redesign their绩效考核制度 (performance assessment systems). Training programs will need to emphasize financial advisory skills over pure salesmanship. Marketing departments must recalibrate all宣传材料 (promotional materials) to adhere to the new transparency rules. Firms that quickly embrace this investor profitability-centric model may gain a reputational advantage and build deeper, more loyal client relationships.
Alignment with Global Trends and Investor Expectations
This move brings China closer to practices in markets like the U.S. and EU, where regulations like the MiFID II suitability requirements and the U.S. Department of Labor’s fiduciary rule emphasize client outcomes. For global fund managers operating in China, such as BlackRock or Fidelity through their WFOEs, this levels the playing field towards quality competition. The emphasis on long-term investor profitability also dovetails with the growing global focus on ESG (Environmental, Social, and Governance) and sustainable finance, where long-term value creation is paramount. Investors should monitor the finalization of this 征求意见稿 (draft for comments) and subsequent implementation guidelines from the 中国证券监督管理委员会 (China Securities Regulatory Commission).
Navigating the New Landscape of Chinese Fund Investing
The introduction of the 公开募集证券投资基金销售行为规范（征求意见稿） (Public Offering Securities Investment Fund Sales Behavior Norms (Draft for Comments)) is more than a regulatory tweak; it is a foundational shift towards an investor-first paradigm in one of the world’s largest asset management markets. By dismantling the “scale-at-all-costs” incentive structure and enshrining investor profitability as the ultimate benchmark, Chinese authorities are fostering a healthier, more transparent, and ultimately more resilient equity ecosystem. For institutional investors worldwide, this enhances the credibility of Chinese funds as vehicles for genuine capital appreciation. The path forward requires adaptation from all industry players—embracing new metrics, investing in investor education, and building systems that track and prioritize long-term client success. As this draft moves towards finalization, its principles of transparency, suitability, and outcome-focused assessment are set to redefine excellence in China’s fund sales industry for years to come.