China Securities Regulatory Commission: Clarifies that the performance benchmark should match the core elements and product investment style stipulated in the fund contract

The China Securities Regulatory Commission (CSRC) has released the "Guidelines for the Performance Benchmark of Publicly Raised Securities Investment Funds." The "Guidelines" consist of six chapters and twenty-one articles, with the main content including: First, highlighting the representational role of performance benchmarks and emphasizing the seriousness and stability of their application. It clarifies that performance benchmarks should match the core elements and investment style stipulated in the fund contract and cannot be changed arbitrarily once selected. Second, strengthening the internal control and management of fund managers. It specifies that performance benchmarks should be determined by the company's management decisions, and fund managers should establish and improve internal control mechanisms and management systems, enhancing continuous management of fund managers and the stability of fund product investment styles. Third, enhancing external constraints on performance benchmarks. It clarifies the supervisory responsibilities of fund custodians, regulates the behaviors of fund sales institutions and fund evaluation institutions regarding the display and application of performance benchmarks, and requires fund managers and fund sales institutions to carry out investor education and other related work. Fourth, strict regulation. The CSRC and its dispatched agencies will legally handle violations by fund managers, fund custodians, fund sales institutions, fund evaluation institutions, and their personnel