Legal Trends in the Private Equity Fund Industry (June 2022/Issue 52)
Yang Chunbao's Lawyer Team's Legal Service Dynamics
01
Lawyer Yang Chunbao collaborates with Jifundraising to launch
Online private equity courses
Recently, Lawyer Yang Chunbao collaborated with a well-known private equity fund one-stop service platform, Jifundraising, to hold an online private equity course titled "The Exit of Private Equity Investment". The course is divided into 11 lectures, providing a detailed introduction to active exit methods such as IPO exit, M&A exit, and MBO exit, as well as passive exit methods such as betting exit, joint sale exit, forced sale exit, and liquidation exit. It also introduces the mother fund's exit from the sub fund through S fund. Highly welcomed by private equity practitioners.
02
Lawyer Yang Chunbao is invited by the Law Society of Fudan University to hold a special lecture
On June 25th, the Fudan University Law Association, together with the Fudan University PE/VC Association and the Fudan Alumni Innovation and Entrepreneurship Club, jointly held a monthly sharing event. Lawyer Yang Chunbao was invited to give a special lecture on "Comprehensive and Deep Analysis of Legal Practice Issues in Gambling" to alumni, which received enthusiastic response and active interaction from alumni.
Various announcements from
the Fund Industry Association
On June 2, 2022, the China Securities Investment Fund Industry Association (hereinafter referred to as the "Association") issued a notice on the cancellation of the registration of the 29th batch of disconnected private fund managers who have expired the public notice period for three months and have not actively contacted the Association. It stated that 38 institutions, including Beijing Zhengfang Global Investment Management Co., Ltd., have met the cancellation conditions for the expiration of the public notice period for three months without actively contacting the Association and providing valid proof materials. The association will cancel the registration of private fund managers for the 38 institutions in accordance with the Announcement on Optimizing the Self discipline Mechanism of Disconnected Institutions and Publicizing the Eleventh Batch of Disconnected Private Equity Institutions (Zhongjixie Zi [2017] No. 8), and record the above situation in the Capital Market Integrity Archive database.
On June 24, 2022, the association issued a notice on the cancellation of the registration of 30 private fund managers, including Beijing Jinyao Capital Management Co., Ltd., who had not submitted a special legal opinion after the deadline, stating that the existing 30 private fund managers, including Beijing Jinyao Capital Management Co., Ltd., were in abnormal business situations and failed to submit a special legal opinion that met the regulations within 3 months after the written notice was issued. The association will cancel the registration of the private fund managers of these 30 institutions and record the above situation in the capital market integrity archive database.
The self-discipline document of the association
1.Management Measures for Electronic Contract Business of Private Equity Investment Funds (Trial)
On June 2, 2022, the association released the "Management Measures for Electronic Contract Business of Private Investment Funds (Trial)" ("Electronic Contract Management Measures"). This method consists of five chapters and a total of 36 articles, including general provisions, registration of electronic contract service institutions, business norms, self-discipline management, and supplementary provisions. Specifically:
(1) General Provisions: This regulation stipulates the definition and connotation of electronic contracts, the applicable objects of this method, the due diligence of private equity fund parties on electronic contract service institutions, as well as the disclosure and membership of electronic contract service institutions;
(2) Registration of Electronic Contract Business Service Institutions: It specifies the registration requirements (i.e. various conditions that must be met) and relevant registration materials that electronic contract service institutions should submit. These requirements include paid up capital, corporate governance, legal compliance, organizational structure, service experience, executive qualifications, network security, system integration, and fault response;
(3) Business standards: stipulate the content of electronic contract business, the essential terms of electronic contract business service agreements, the obligations that electronic contract business service institutions should fulfill (including conducting investor identification, carefully selecting and regularly evaluating electronic authentication service providers, storing key data in ciphertext, using password algorithms recognized by the national password regulatory department, using timestamps recognized by the national time service center, conducting annual overall evaluations, submitting and storing information to the association, conducting annual audits, etc.), and other contents;
(4) Self discipline management: including the association's self discipline inspection and continuous evaluation, as well as the self discipline measures and various penalties that electronic contract service institutions will face if they violate this measure.
2.Notice on Matters Related to the Registration and Filing of Private Fund Managers
On June 2, 2022, the association issued a notice on matters related to the registration and filing of private fund managers (Zhongjixie Zi [2022] No. 203), stating that in order to guide the standardized development of the industry, facilitate the registration and filing business of private fund managers and application institutions, the association has updated the "List of Application Materials for Registration of Private Fund Managers" (the "New List") and issued the "Key Points of Attention for Private Investment Fund Filing". Moreover, within a week of the announcement, the association also held multiple online training sessions on the new list and key points for private fund registration.
Compared with the old version of the list, the new version integrates multiple commitment letters, clarifies the work experience that different executives should have, refines the requirements for investment ability materials, and strengthens the filling of integrity information. Regarding the key points of private fund filing, the association has released two issues of "Publicity of Private Fund Filing Cases". Based on current laws and regulations, self-discipline rules, and relevant requirements for private fund operation, combined with the prominent problems exposed by major illegal and irregular events in the industry in recent years, the association has refined the core elements of various product links such as fundraising, investment, and management, and clarified and refined the focus of private fund filing.
On the basis of in-depth study of the new list and key points for private fund registration, Yang Chunbao's legal team participated in the relevant online training organized by the association throughout the process.
3. Guidelines for Registration of Private Fund Managers and Filing of Private Investment Funds
First, please LoginComment After ~